Home > Central banking, Fractional Reserve Banking, Moral Hazard > Banks looking to lend to any mid-east sucker with a pulse after Dubai bail-out

Banks looking to lend to any mid-east sucker with a pulse after Dubai bail-out

I like my headline compared to Ft.com’s: “Risk appetite surges on Dubai bail-out.”

Who wouldn’t want to lend to Dubai now that Abu Dhabi has confirmed it will play market sucker?  This isn’t moral hazard – this is a licence to print money out of the oil wells of the Middle East.

The solution?  For Abu Dhabi to reign in Dubai’s excesses and slow down the debt-deals that are clearly killing the region.  Circuses have got to stop – sustainable farming has got to replace the mad casinos.

Low IQ borrowers meet sharp London bankers.  The mix is never good.

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