"I never think of the future - it comes soon enough.", Albert Einstein.
It's already Christmas in Dubai! After a couple of weeks of uncertainty, Dubai woke up today to a gift. 10 Billion Dollars is the amount that Abu Dhabi splashed to make sure that Dubai's troubled government-owned companies are safe.
In simple terms, this means that companies like Nakheel will be able to fulfill their commitment and pay back the banks. Is this a good news? Well, it depends on how you look at it. See, the alternative for Dubai would've been risking the City's reputation as a safe and reliable investment destination. Companies and individual investors would have been reluctant to come here and spend millions of dollars on investments.
So we established that this will help Dubai protect it's image. The question is; are there any strings attached to it?
Well, let's agree that no one gives free money. Definitely not 10 Billion dollars. It is highly probable that Abu Dhabi would like to have some stake in Dubai's thriving businesses; like Emirates Airlines or Dubai Ports, etc. It's also possible that Abu Dhabi wants to get a chunk of the Cherry that is Dubai's global image. Is it that bad? Absolutely not.
UAE is made of 7 small emirates, and it's certainly not bad that you have one Emirate helping the other. That's what a union is all about after all. Besides, if one city goes down it will drag the other one with it, and if one thrive it will pull the other up with it. So, if there were any strings, it will only make the bond between the two cities stronger and the residents whether locals or expats will definitely benefit from it.
This scenario becomes all the more favorable when you consider that other sources of funds/ strings can come from abroad. It was never a positive thing to have an external influence on your domestic policies or decisions. Whether help comes from USA, EU, Russia, China, KSA or any other source, that is an influence and a potential risk that UAE doesn't need.
So, Happy Eid and Merry Christmas to Dubai.
Showing posts with label Business Buzz. Show all posts
Showing posts with label Business Buzz. Show all posts
Dubai... A Middle Eastern Dream
As I grew up people dreamt about going to the US, the land of opportunities. Some wanted the UK, others wanted anything out of this stagnating region!
As I graduated there was a new destination. One that is unusually close, and easier to fit in. An Arab country. Somewhere we don't worry about being descriminated against or punished for who we are or what we believe in. People came from all corners of the world to experience it and live it. To be part of the boom and part of the phenomenon. This place is Dubai.
Unfortunately, the world is not fair. And while we always demand the best from governments and coutnries, we tend to crucify those who dream. Even if there dream worked for awhile. We rush and compete in bringing those who dream down. We point the fingers of blame and we open our mouths and we say: I KNEW IT!
I don't blame Europeans or North Americans. It just amazes me how middle easterners and specifically arabs feel so vendicated by what's going on now! What was it that you wanted? One more mundane place? Inorganized, flat, dirty, dull, Oil-dependant, aid-dependant & grey City?
Dubai offered people an alternative for our corrupted countries and cities. A place to work and live in security and peace. A multi-cultural environment. A platform to meet people from other cultures in an unbiased condition. Prejudice free. Tax free.
Everyone is allowed to dream, and everybody is encouraged to. nevertheless, we jump into the forefront and race to step on the the shoulders of a giant that fell down to accelerate its demise.
One question for, Egptians, Lebanese, Jordanians, Palestinians, Iranians, Indians, Filipinos, Australians and others; What is your alternative? What is your plan B?
Was Dubai perfect? Definitely not. Was everyone here happy and living the perfect life, absolutely not! But for many of us it was the perfect solution and the perfect alternative? Thousands of families lived on remittances from this country. Thousands of other families were built because of careers and expereicnes which would have been otherwise impossible.
I still believe that it is not over. Maybe it will never be the same booming city it was before. There were mistakes and they will definitely need to be fixed, but that doesn't mean that the dream is dead.
It better still be alive. For everyone's sake!
Jordan Ranks 33 on Forbes List of Best Countries for Business
Jordan came No.33 in Forbes list for best counties for business up 28 spots from last year, right after Bahrain and beating the United Arab Emirates (No.46) by 13 spots, Saudi Arabia (No.44) by 11 spots, Kuwait (No.49) by 16 spots, Oman (No.39) by 6 spots, and Qatar (No.37) by 4 spots.
Rank-previous year 61
GDP Growth 4.5%
GDP/Capita $5,000
Trade Balance -29.4%
Population 6.2 mil
Federal Budget Balance as % of GDP -5.9%
Jordan is a small Arab country with insufficient supplies of water, oil, and other natural resources. Poverty, unemployment, and inflation are fundamental problems, but King ABDALLAH II, since assuming the throne in 1999, has undertaken some broad economic reforms in a long-term effort to improve living standards.
Since Jordan's graduation from its most recent IMF program in 2002, Amman has continued to follow IMF guidelines, practicing careful monetary policy, making substantial headway with privatization, and opening the trade regime. Jordan's exports have significantly increased under the free trade accord with the US and Jordanian Qualifying Industrial Zones (QIZ), which allow Jordan to export goods with some Israeli content duty free to the US.
In 2006 and 2008, Jordan used privatization proceeds to significantly reduce its debt-to-GDP ratio. These measures have helped improve productivity and have made Jordan more attractive for foreign investment. The government ended subsidies for petroleum and other consumer goods in 2008 in an effort to control the budget. The main challenges facing Jordan are reducing dependence on foreign grants, reducing the growing budget deficit, attracting investments, and creating jobs.
Jordan is currently exploring nuclear power generation to forestall energy shortfalls. Jordan's conservative banking sector has been largely protected from the worldwide financial crisis, but many businesses, particularly in the tourism and real estate sector, are predicting a slow-down in 2009.
Source: http://www.forbes.com/lists/2009/6/bizcountries09-best-countries-for-business_Jordan_CHI051.html
Rank-previous year 61
GDP Growth 4.5%
GDP/Capita $5,000
Trade Balance -29.4%
Population 6.2 mil
Federal Budget Balance as % of GDP -5.9%
Jordan is a small Arab country with insufficient supplies of water, oil, and other natural resources. Poverty, unemployment, and inflation are fundamental problems, but King ABDALLAH II, since assuming the throne in 1999, has undertaken some broad economic reforms in a long-term effort to improve living standards.
Since Jordan's graduation from its most recent IMF program in 2002, Amman has continued to follow IMF guidelines, practicing careful monetary policy, making substantial headway with privatization, and opening the trade regime. Jordan's exports have significantly increased under the free trade accord with the US and Jordanian Qualifying Industrial Zones (QIZ), which allow Jordan to export goods with some Israeli content duty free to the US.
In 2006 and 2008, Jordan used privatization proceeds to significantly reduce its debt-to-GDP ratio. These measures have helped improve productivity and have made Jordan more attractive for foreign investment. The government ended subsidies for petroleum and other consumer goods in 2008 in an effort to control the budget. The main challenges facing Jordan are reducing dependence on foreign grants, reducing the growing budget deficit, attracting investments, and creating jobs.
Jordan is currently exploring nuclear power generation to forestall energy shortfalls. Jordan's conservative banking sector has been largely protected from the worldwide financial crisis, but many businesses, particularly in the tourism and real estate sector, are predicting a slow-down in 2009.
Source: http://www.forbes.com/lists/2009/6/bizcountries09-best-countries-for-business_Jordan_CHI051.html
YouTube to show full length movies
A new era in YouTube’s life is coming soon, YouTube to show full length movies, the Financial Times reported on Friday the 17th of April. This comes with the huge afforts made by the parent comapny Google to win over the proffisional content producers, and to make real money from the most clicked site on the World Wide Web.
“We’ve been looking for a business model where the content owner is happy and making money,” Mr Schmidt told the Financial Times on Tursady.
The new business idea will be to show the full length movie with adds included in the movie, and the profit will be split between YouTube and the producing studio, a deal like that has been signed between YouTube and Universal Studios earlier this month.
The largest studio involved in making a partnership deal with YouTube is Sony, but this deal is different, since Sony has it’s own web cast site, Crackle. Sony will offer only 15 movies including dated materials, and the movies will play on Crackle not on YouTube, Sony will also control the adds which will appear every 10 minutes.
So finally Google has figured a way to make money out of YouTube!
“We’ve been looking for a business model where the content owner is happy and making money,” Mr Schmidt told the Financial Times on Tursady.
The new business idea will be to show the full length movie with adds included in the movie, and the profit will be split between YouTube and the producing studio, a deal like that has been signed between YouTube and Universal Studios earlier this month.
The largest studio involved in making a partnership deal with YouTube is Sony, but this deal is different, since Sony has it’s own web cast site, Crackle. Sony will offer only 15 movies including dated materials, and the movies will play on Crackle not on YouTube, Sony will also control the adds which will appear every 10 minutes.
So finally Google has figured a way to make money out of YouTube!
The 5 Monkeys Theory
Once a scientist wanted to do an experiment on behaviour trends and how it develops with time, so he got 5 monkeys and put them in a cage, he places some bananas on the top of the cage and put a ladder in the cage, one monkey tried to reach the bananas, and at once the scientist aimed a water hose and fired very cold water at the other 4,he scared them to death.
Next, another monkey tries to reach the bananas and the scientist did the same thing, after sometime and couple of cold water hits, he found that whenever a monkey tries to reach the bananas, the other monkeys will hit him hard and keep him from reaching the banana.
Next, he took one of the monkeys out and let another one in, let’s call the new monkey XY. The moment XY gets into the cage, he goes up the ladder to get the banana, but the other monkeys still remember the cold water torture, so they jump and start hitting him to ban him from reaching the banana, after a couple of tries and some really hard hits XY learned that if he tries to get the banana he will be hit hard by the other monkeys, although none of them wants the banana, he doesn’t understand why he’s being hit, he just knows it will happen.
The scientist continued on the process of taking out one monkey and adding a new one and the same thing happened all the time with all the new monkeys and even XY was hitting the new comers even though he doesn’t know why.
After taking out all the monkeys that have been tortured with the cold water and placing new monkeys in the cage, and even repeating this process until he changed the group twice (of course one by one he does it) the same thing kept happening.
Now, none of the new monkeys has been tortured with the cold water, so none of them knows why he is defending these bananas, but they still do it anyway, because they are used to it and they saw the late ones doing it, and also each one of them get hit at least once because he tried ti reach the bananas.
Get it?!
Next, another monkey tries to reach the bananas and the scientist did the same thing, after sometime and couple of cold water hits, he found that whenever a monkey tries to reach the bananas, the other monkeys will hit him hard and keep him from reaching the banana.
Next, he took one of the monkeys out and let another one in, let’s call the new monkey XY. The moment XY gets into the cage, he goes up the ladder to get the banana, but the other monkeys still remember the cold water torture, so they jump and start hitting him to ban him from reaching the banana, after a couple of tries and some really hard hits XY learned that if he tries to get the banana he will be hit hard by the other monkeys, although none of them wants the banana, he doesn’t understand why he’s being hit, he just knows it will happen.
The scientist continued on the process of taking out one monkey and adding a new one and the same thing happened all the time with all the new monkeys and even XY was hitting the new comers even though he doesn’t know why.
After taking out all the monkeys that have been tortured with the cold water and placing new monkeys in the cage, and even repeating this process until he changed the group twice (of course one by one he does it) the same thing kept happening.
Now, none of the new monkeys has been tortured with the cold water, so none of them knows why he is defending these bananas, but they still do it anyway, because they are used to it and they saw the late ones doing it, and also each one of them get hit at least once because he tried ti reach the bananas.
Get it?!
The World's Worst Places to Work
A friend e-mailed me a part of an article about the world’s worst places to work, so, I had to go search for the full story to see what’s going on.
It’s an article published on the businessweek magazine about a study made by ORC (a HR consultancy company) about the cities that fall in the hardship tag.
Now, before I go and list these cities, I have to say that this article is not fair, not because the cities don’t fall in the hardship tag, but because of the reasons it was chosen for.
There it is starting from number 1;
No. 1 Lagos, Nigeria
Overall Grade: Very High Risk Location
Severe Problems: Infrastructure, Crime
Major Problems: Pollution, Disease & Sanitation, Medical Facilities, Availability of Goods and Services
Other Problems: Climate, Education Facilities, Physical Remoteness, Political Violence & Repression, Political & Social Environment, Culture & Recreation
There's no more challenging place on ORC's list than the largest city in Africa's largest country. Lagos not only has a severe crime problem and extremely poor infrastructure, the city has inadequate housing, sanitation, and medical facilities. Moreover, according to ORC, "the risk of being caught up in sectarian violence is another concern."
I’ve never been there, but from what I see in the news, that might be true.
No. 2 Jakarta, Indonesia
Overall Grade: Very High Risk Location
Major Problems: Pollution, Disease & Sanitation, Medical Facilities, Political Violence & Repression, Political & Social Environment, Crime
Indonesia may be holding up better than many other developing countries during the global recession, but that doesn't make life in Jakarta much easier for expatriates moving there. Despite problems common to many Third World cities—risk of disease, poor sanitation, and excessive pollution—the Indonesian capital "can be an enticing location," according to ORC. However, Indonesia is the world's largest Muslim country and has suffered several high-profile attacks by Islamic terrorists targeting foreigners. "The threat of violence, from Islamic extremists in particular, is a serious drawback to living here," says ORC.
Now, I see where they are coming from, “IT’s THE WORLD LARGEST COUNTRY” I don’t have to say more, guess who’s next!!
No. 3 Riyadh, Saudi Arabia
Overall Grade: Very High Risk Location
Severe Problems: Political Violence & Repression, Political & Social Environment
Major Problem: Culture & Recreation Facilities
Other Problems: Housing, Climate, Disease & Sanitation, Education Facilities, Physical Remoteness, Communications
No surprise here. Life in the Saudi capital is not easy. "The possibility of a terrorist attack is an ongoing threat," according to ORC, "while wide-ranging restrictions on dress, movement, conduct, food, alcohol, travel, and communications limit expatriate life." The city is especially hard for foreign women. Finally, adds ORC, "violating the country's strict moral religious codes is a particular danger in this conservative city."
I agree, life there is hard, I’ve tried it, but not because it politically violent, especially for the Americans and Europeans, it’s because after work, there is absolutely nothing to do there but to kill yourself out of boredom.
No. 4 Almaty, Kazakhstan
Overall Grade: Very High Risk Location
Major Problems: Pollution, Disease & Sanitation, Medical Facilities, Physical Remoteness
Other Problems: Housing, Climate, Education Facilities, Infrastructure, Communications, Culture & Recreation
The remoteness of Almaty, largest city in Kazakhstan, is one of the city's biggest problems as far as outsiders are concerned. Other significant hardships include pollution, the threat of disease, and poor medical facilities. "Inadequate infrastructure, substandard housing, crime and difficulties with communications are additional drawbacks," says ORC.
I can’t argue with that, I don’t know anything about Kazakhstan, not even from the news.
No. 5 Mumbai, India
Overall Grade: High Risk Location
Major Problems: Pollution, Disease & Sanitation, Infrastructure, Political Violence & Repression
Other Problems: Climate, Medical Facilities
India's financial capital has some of the country's best architecture, restaurants, and museums. It also has some of the worst slums, traffic jams, and security problems. "While some may be energized by the hustle-bustle of this cosmopolitan city and by its beautiful setting," writes ORC, "many more are likely to be overwhelmed by its crowded and chaotic conditions and by the poor sanitation and violence."
I don’t know about that either, but I saw some photo’s of Mumbai and I have friends who’s been there, and they all say it’s like every other city, it has some good places and some bad ones to be.
I will settle for the top 5 and will add the link to the full article at the end of the post.
It’s really annoying that they kept on using high crime risk as one of the top reasons, it’s not that London or New York has the lowest crime rate in the world!
http://images.businessweek.com/ss/09/03/0304_difficult_cities/1.htm
On Problem Solving!!
This post has been inspired by Ali, Kababji, and obviously Scott Adams!!
And I can swear I've seen happening before!!
Difference between Focusing on Problems and Focusing on Solutions
A couple of days a go I received an interesting e-mail from a freind, and i thought it would be nice to share it, read it below.
"Case 1
When NASA began the launch of astronauts into space, they found out that the pens wouldn't work at zero gravity (ink won't flow down to the writing surface). To solve this problem, it took them one decade and $12 million. They developed a pen that worked at zero gravity, upside down, underwater, in practically any surface including crystal and in a temperature range from below freezing to over 300 degrees C. And what did the Russians do...?? They used a pencil.
Case 2
One of the most memorable case studies on Japanese management was the case of the empty soapbox, which happened in one of Japan's biggest cosmetics companies. The company received a complaint that a consumer had bought a soapbox that was empty. Immediately the authorities isolated the problem to the assembly! line, which transported all the packaged boxes of soap to the delivery department. For some reason, one soapbox went through the assembly line empty. Management asked its engineers to solve the problem. Post-haste, the engineers worked hard to devise an X-ray machine with high-resolution monitors manned by two people to watch all the soapboxes that passed through the line to make sure they were not empty. No doubt, they worked hard and they worked fast but they spent a whoopee amount to do so.
But when a rank-and-file employee in a small company was posed with the same problem, he did not get into complications of X-rays, etc., but instead came out with another solution. He bought a strong industrial electric fan and pointed it at the assembly line. He switched the fan on, and as each soapbox passed the fan, it simply blew the empty boxes out of the line."
It's true isn't it, we always work really hard to solve a problem, sometimes we come up brilliant ideas to solve it, but most of the times you don't need a brilliant solution, we just need a solution.
Dubai & The Financial Crisis
All around the world countries have been hit badly by the financial crisis. People being laid off, companies going bust and houses stand empty like ghost houses from a Hollywood movie. Occasionally, you hear a comment here and there, about Ford, Lehmann Brothers, even Iceland. Not to mention the overwhelming amount of news you get fed daily about the effect of the crisis on the United States, which sometimes gives me the feeling that I’m actually living in an American State! Although it is probably safe to say that this feeling is not totally imaginary. On the other hand, for some reason you can feel that everyone have something to say about Dubai. They are all pundits and experts, and have the sight and the wisdom needed if they were asked to steer the city in the right direction.
I can understand some of those people. It’s competition. Europe, Canada & The US started losing people to this city. Not those fat asses and useless people we used to get in the Gulf in the past, but actually people with skills, who can contribute to the place. Companies started coming here and sitting up headquarters, factories and logistic centers, as they realized that this is where growth is happening, or at least this is the closest point to where it’s happening. However, the part that I don’t understand, is how some of the city’s neighbors sound so wise and all knowing now. Everybody is cursing the boom, and everyone had anticipated at one point of time that this city is going back to the ground. Sand as it was once before. My question to those is, what is your alternative for Dubai? And if this city is going to go down, where else are you going to find a place that pays you that much and offers you this lifestyle!? Saudi? Kuwait? Oman? Jordan? Lebanon? Egypt? Or maybe the right choice is Qatar! A place where Jordanians and Egyptians are currently denied visas. A place where you still need the permission of your sponsor to go back home for a vacation!
Everyone now is critical of what Dubai did. I remember six months ago everyone was in owe, and many where envious! Now, they are like hyenas waiting to quench their thirst! Not with their success god forbids! But with the anticipated failure of others!
For the good of everyone, this city should not go down. Because if it did, we will all go back to working as slaves in KSA, Kuwait & Qatar! Begging our sponsors for a holiday to spend at home. Suffering every time we want to change jobs. Living like prisoners in our homes because we don’t feel the freedom and the security we used to feel in Dubai!
But if you think about it for a while you realize that this city is not going back to the dark ages! It has the infrastructure needed for a business hub, and for a tourists’ destination. It might and actually did slow down, but as everything else, nothing lasts forever. That is why it was called a boom. They will have to adjust. The correction will take its course and things will and should pick up again. At that point of time, if any multinational thinks of establishing headquarter here, or focus on this market they will do it from Dubai. Simply because there is no other option! You may search for it as much as you want, but other than Dubai & Abu Dhabi, and I think they will do themselves a favor if they actually start giving those who lived here for 10 years or more passports or permanent visas “Something similar to a green card” because on the long run people will need more reasons to stay other than work!
I don’t see where else it can happen. Qatar? Well, maybe. But they need to start treating expats as humans more.
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Toyota Reports Its First Operational Loss In 70 years
Toyota, the largest carmaker in the world is reporting its first operational losses in 70 years. But why is that happening?
It’s not because Toyota cars suck like the American made cars, or because it consumes a lot of gas; it’s because their biggest market – the American market- is not big anymore, I think that is telling us why the American carmakers are about to go bankrupt.
Corolla and Camry are the top selling Toyota cars in the U.S.
It’s not because Toyota cars suck like the American made cars, or because it consumes a lot of gas; it’s because their biggest market – the American market- is not big anymore, I think that is telling us why the American carmakers are about to go bankrupt.
Corolla and Camry are the top selling Toyota cars in the U.S.
Today’s Dose of Wisdom: Businessmen
Buy land, they're not making it anymore.
Mark Twain
A man always has two reasons for doing anything: a good reason and the real reason.
J. P. Morgan
The conventional definition of management is getting work done through people, but real management is developing people through work.
Agha Hasan Abedi
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Warren Buffett
Quality means doing it right when no one is looking.
Henry Ford
Mark Twain
A man always has two reasons for doing anything: a good reason and the real reason.
J. P. Morgan
The conventional definition of management is getting work done through people, but real management is developing people through work.
Agha Hasan Abedi
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Warren Buffett
Quality means doing it right when no one is looking.
Henry Ford
Madoff the $50 Billion Fraud
Bernard Madoff, a 70 years old money manager and a former NASDAQ chairman was arrested over a fraud case in Wall Street, this fraud scheme has hit the biggest American and European banks and charities.
Now, as mentioned the Madoff ponzi has hit the banks with $50 billion dollars, these banks are; HSBC, PNB Paripas, Spain’s Santander, Fortis Bank, Royal Bank of Scotland, the UK-based Hedge Fund Man Group, and many charities.
Bernard Madoff has founded his firm (Bernard L. Madoff Investment Securities LLC) in 1960 and it was one of the biggest market makers in Wall Street and had an investment management arm.
It was said the he didn’t have real investments; he was taking money from the new investors and paying it as profits to the old investors, for almost 50 years, he managed to fool all those “professional” investors with a firm started with only $5000 as an initial investment.
This guy is even a genius or had some of SEC (The U.S. Securities and Exchange Commission) employees on his payrolls, either way, I think an inside investigation should be carried on in the SEC, because everything about the financial crisis has proved that there is corruption in the US regulations and regulatory bodies.
Now, as mentioned the Madoff ponzi has hit the banks with $50 billion dollars, these banks are; HSBC, PNB Paripas, Spain’s Santander, Fortis Bank, Royal Bank of Scotland, the UK-based Hedge Fund Man Group, and many charities.
Bernard Madoff has founded his firm (Bernard L. Madoff Investment Securities LLC) in 1960 and it was one of the biggest market makers in Wall Street and had an investment management arm.
It was said the he didn’t have real investments; he was taking money from the new investors and paying it as profits to the old investors, for almost 50 years, he managed to fool all those “professional” investors with a firm started with only $5000 as an initial investment.
This guy is even a genius or had some of SEC (The U.S. Securities and Exchange Commission) employees on his payrolls, either way, I think an inside investigation should be carried on in the SEC, because everything about the financial crisis has proved that there is corruption in the US regulations and regulatory bodies.
Oil price hits a low of $40.5 pb.
On Friday’s trading session the West Texas Light Sweet Crude Oil price has hit a low of $40.5 pb, a price that was people’s nightmare 5 years ago and the sweetest dream of all just 6 months ago.
Now, let’s go back in history and find out why crude oil prices has raised to more than $140 pb and why did it fall back to these levels.
When the prices were raising the annalists said it’s because of China’s and India’s economic growth, which was true actually. Other annalists added the political uncertainty in the Middle East, which in my opinion is partly true, because political uncertainty proved to be a short term driver, while we have seen a 5 year rally for the crude oil prices, the political uncertainty still exists and the prices keep falling. The most interesting analysis, the one that I don’t buy, is that we are running out of oil, it’s not that it’s unlikely to happen, it’s just the way this analysis was presented, it was never clear how they got to the numbers they presented to us. And we shouldn’t forget the most important short term market players, brokers and scalpers.
It’s important to distinguish between the long term drivers and the short term ones. In my opinion, economic growth and oil reserves are the most important factors to look at, if we are talking about investing or strategic planning.
I personally wish that oil prices fall even more, I don’t know it just makes life sound easier when oil prices are low.
Now, let’s go back in history and find out why crude oil prices has raised to more than $140 pb and why did it fall back to these levels.
When the prices were raising the annalists said it’s because of China’s and India’s economic growth, which was true actually. Other annalists added the political uncertainty in the Middle East, which in my opinion is partly true, because political uncertainty proved to be a short term driver, while we have seen a 5 year rally for the crude oil prices, the political uncertainty still exists and the prices keep falling. The most interesting analysis, the one that I don’t buy, is that we are running out of oil, it’s not that it’s unlikely to happen, it’s just the way this analysis was presented, it was never clear how they got to the numbers they presented to us. And we shouldn’t forget the most important short term market players, brokers and scalpers.
It’s important to distinguish between the long term drivers and the short term ones. In my opinion, economic growth and oil reserves are the most important factors to look at, if we are talking about investing or strategic planning.
I personally wish that oil prices fall even more, I don’t know it just makes life sound easier when oil prices are low.
Top former Fannie, Freddie excutives to testify
4 former Fannie, Freddie executives to be grilled at House hearing on companies' collapse
Alan Zibel, AP Real Estate Writer
Tuesday December 9, 2008, 12:02 am EST
WASHINGTON (AP) -- Lawmakers are poised to trade barbs Tuesday about who deserves most of the blame for the collapse and government takeover of mortgage finance titans Fannie Mae and Freddie Mac.
The two companies, which were seized by federal regulators in September, have become highly charged political targets in the debate over what caused the U.S. housing crisis and the resulting financial fallout.
Four former top executives are scheduled to be grilled at the hearing, which is being led by Rep. Henry Waxman, D-Calif., chairman of the House Oversight and Government Reform Committee. But there are doubts about whether the hearing will produce any solid conclusions or will just devolve into partisan bickering.
"I think we're going to get a lot of finger-pointing, which will be totally unproductive," said Bert Ely, a banking industry consultant in Alexandria, Va.
Fannie and Freddie, which own or guarantee around half the $11.5 trillion in U.S. outstanding home loan debt, long used their lobbying muscle in Washington to thwart efforts to impose tighter regulation.
Washington-based Fannie and McLean, Virginia-based Freddie are the engines behind a complex process of buying, bundling and selling mortgages as investments.
They traditionally backed the safest loans, 30-year fixed rate mortgages that required a down payment of at least 20 percent. But in recent years, they lowered their standards, matching a decline fueled by Wall Street banks that backed the now-defunct subprime lending industry.
Republicans blame Fannie and Freddie, and the effort to promote homeownership under the Clinton administration for sowing the seeds of the financial meltdown. Democrats defend the companies' role in encouraging homeownership and note that Wall Street banks -- not Fannie and Freddie -- led a dramatic decline in lending standards.
Both companies have been asked to turn over a long list of documents and e-mail messages concerning the risks they took in their mortgage investments, accounting, and compensation for the companies' former CEOs.
For full story please visit http://finance.yahoo.com/news/Top-former-Fannie-Freddie-apf-13778762.html
Alan Zibel, AP Real Estate Writer
Tuesday December 9, 2008, 12:02 am EST
WASHINGTON (AP) -- Lawmakers are poised to trade barbs Tuesday about who deserves most of the blame for the collapse and government takeover of mortgage finance titans Fannie Mae and Freddie Mac.
The two companies, which were seized by federal regulators in September, have become highly charged political targets in the debate over what caused the U.S. housing crisis and the resulting financial fallout.
Four former top executives are scheduled to be grilled at the hearing, which is being led by Rep. Henry Waxman, D-Calif., chairman of the House Oversight and Government Reform Committee. But there are doubts about whether the hearing will produce any solid conclusions or will just devolve into partisan bickering.
"I think we're going to get a lot of finger-pointing, which will be totally unproductive," said Bert Ely, a banking industry consultant in Alexandria, Va.
Fannie and Freddie, which own or guarantee around half the $11.5 trillion in U.S. outstanding home loan debt, long used their lobbying muscle in Washington to thwart efforts to impose tighter regulation.
Washington-based Fannie and McLean, Virginia-based Freddie are the engines behind a complex process of buying, bundling and selling mortgages as investments.
They traditionally backed the safest loans, 30-year fixed rate mortgages that required a down payment of at least 20 percent. But in recent years, they lowered their standards, matching a decline fueled by Wall Street banks that backed the now-defunct subprime lending industry.
Republicans blame Fannie and Freddie, and the effort to promote homeownership under the Clinton administration for sowing the seeds of the financial meltdown. Democrats defend the companies' role in encouraging homeownership and note that Wall Street banks -- not Fannie and Freddie -- led a dramatic decline in lending standards.
Both companies have been asked to turn over a long list of documents and e-mail messages concerning the risks they took in their mortgage investments, accounting, and compensation for the companies' former CEOs.
For full story please visit http://finance.yahoo.com/news/Top-former-Fannie-Freddie-apf-13778762.html
Today’s dose of wisdom: Motivational Quotes
Take a lesson from the mosquito. It never waits for an opening; it makes one.
When we wake up in the morning, we have two simple choices: go back to sleep and dream, or wake up and chase those dreams.
Success is not permanent and failure is not final! So, never stop working after success and never stop trying after failure!
Investment in people brings the highest return in life.
Life is an experiment. It could end in disaster one day, puts you on top of the world the next day and will leave you wondering what happens, the next. The challenge is to turn the experiment into a life, well experimented.
Push yourself past your own expectations and those of others. Once you think you have had enough, push a little harder.
The best compliment a leader can receive is not from their leader, but from those they lead.
for more please visit
http://www.motivateus.com/
When we wake up in the morning, we have two simple choices: go back to sleep and dream, or wake up and chase those dreams.
Success is not permanent and failure is not final! So, never stop working after success and never stop trying after failure!
Investment in people brings the highest return in life.
Life is an experiment. It could end in disaster one day, puts you on top of the world the next day and will leave you wondering what happens, the next. The challenge is to turn the experiment into a life, well experimented.
Push yourself past your own expectations and those of others. Once you think you have had enough, push a little harder.
The best compliment a leader can receive is not from their leader, but from those they lead.
for more please visit
http://www.motivateus.com/
Dubai: Moment of Truth!
Our fears have been confirmed. Now, even after using all our senses and twisted logical methods we couldn't mask the truth. Dubai now, is officially affected as every other part of the world by the Credit Crunch!
Nakheel, a government-owned developer, and one of the most innovative and daring real estate developers has decided to cut its workforce by 15%. 500 employees were told today that their services are no longer required. Now, what you decided to make of that is your choice, but I for one, will hold dearly to my job! I think the days of job-jumping and double digit salary hikes are over. It will be interesting to see how the government will go about applying the planned VAT tax, and their initial promise of introducing it at a low rate of 2.5%.
The matter of the fact is that Dubai is not going to collapse. Simply because the economy here is diversified. But the question will be, how capable is the city of showing the rate of growth it showed up till now in the future?! Another interesting question is how strong will the Domino effect be?! Nakheel, Damac and the rest of real estate companies in Dubai offered some of the best paying jobs in the country. Along with that comes a strong purchasing power, so how will those who found themselves suddenly with no jobs react to the situation in term of spending, and how will that affect all the consumer-driven businesses in the country? It is wise to assume that a lot of people will be watching their bills from now on, and unnecessary and lavish spending practices will be re-visited.
What will be the next step? I think we have to sit and watch!
Nakheel, a government-owned developer, and one of the most innovative and daring real estate developers has decided to cut its workforce by 15%. 500 employees were told today that their services are no longer required. Now, what you decided to make of that is your choice, but I for one, will hold dearly to my job! I think the days of job-jumping and double digit salary hikes are over. It will be interesting to see how the government will go about applying the planned VAT tax, and their initial promise of introducing it at a low rate of 2.5%.
The matter of the fact is that Dubai is not going to collapse. Simply because the economy here is diversified. But the question will be, how capable is the city of showing the rate of growth it showed up till now in the future?! Another interesting question is how strong will the Domino effect be?! Nakheel, Damac and the rest of real estate companies in Dubai offered some of the best paying jobs in the country. Along with that comes a strong purchasing power, so how will those who found themselves suddenly with no jobs react to the situation in term of spending, and how will that affect all the consumer-driven businesses in the country? It is wise to assume that a lot of people will be watching their bills from now on, and unnecessary and lavish spending practices will be re-visited.
What will be the next step? I think we have to sit and watch!
Dubai protects its Real Estate boom during crisis
To react to the ongoing global financial crisis, Dubai has introduced new regulations to protect one of the segments that led the way in Dubai's financial growth.
During the past few days a couple of events that took place in Dubai gave the indication that the bubble everyone was talking about is about to burst. Damac letting go 200 employees, stories about Nakheel putting a hold on 7 major projects, stocks of major real estate companies nose diving in the stock market. All of that added to a rumor that prices have went down 4% since September!!
To counter this fear factor new regulations have been introduced to boost investors' confidence in Dubai's real estate market. Some of these new regulations include: Power vested in developers to issue residence visas for investors at the point of sale, which is obviously an important boost to the invstors' confidence given that Dubai is the only place in the world that offers such option. An important ammendment is the assurances that ivestors will get by registering every deal in Dubai Land Department which guarrantees to those investors that shady deals and properties that used to be planned and advertised and then put on hold after the first payment is history. Other rules regarding mortgage and freehold further boost confidence.
All that will be put to test in the coming few months, and everyone will be watching how Dubai will react to this global crisis! Questions will be asked about how diversified Dubai's economy is, and how this will help protect its growth.
Fingers crossed.
During the past few days a couple of events that took place in Dubai gave the indication that the bubble everyone was talking about is about to burst. Damac letting go 200 employees, stories about Nakheel putting a hold on 7 major projects, stocks of major real estate companies nose diving in the stock market. All of that added to a rumor that prices have went down 4% since September!!
To counter this fear factor new regulations have been introduced to boost investors' confidence in Dubai's real estate market. Some of these new regulations include: Power vested in developers to issue residence visas for investors at the point of sale, which is obviously an important boost to the invstors' confidence given that Dubai is the only place in the world that offers such option. An important ammendment is the assurances that ivestors will get by registering every deal in Dubai Land Department which guarrantees to those investors that shady deals and properties that used to be planned and advertised and then put on hold after the first payment is history. Other rules regarding mortgage and freehold further boost confidence.
All that will be put to test in the coming few months, and everyone will be watching how Dubai will react to this global crisis! Questions will be asked about how diversified Dubai's economy is, and how this will help protect its growth.
Fingers crossed.
Too Many Questions
Before I start my TOO MANY QUESTIONS I want to say what pushed me to write such an article.
A court order stopped the trading in the Kuwait stock Exchange, this headline has really pulled on my nerves, it was worse than a slap in the face.
Now the questions,
Who went to court and raised a case to stop the trading? Who is the judge who gave the order? What is his expertise and what does he know about the financial markets? What was this order meant to give to the stock market? What will happen when they resume the trading? Or will they keep it halted forever?
That was about Kuwait; now let’s look at the big picture,
Where are the Arab governments’ spokesmen who were shouting out loud that the global financial crisis will not affect us? In fact, where are those who had the guts to say that it’s going to be beneficial for us? ( I remember I wrote about this and said that I agree with them only if they did the right thing, but obviously they are doing the exact opposite).
And speaking of the liquidity crisis, is it possible that the gulf states have a liquidity crisis? And what about the companies? How about buying your 10% treasury stocks? Don’t you think this will give investors more confidence in your stock? Or don’t you think it's worth buying?
There is only one thing I want to say;
IF YOU CAN’T STAND THE HEAT, STAY AWAY FROM THE KITCHEN.
A court order stopped the trading in the Kuwait stock Exchange, this headline has really pulled on my nerves, it was worse than a slap in the face.
Now the questions,
Who went to court and raised a case to stop the trading? Who is the judge who gave the order? What is his expertise and what does he know about the financial markets? What was this order meant to give to the stock market? What will happen when they resume the trading? Or will they keep it halted forever?
That was about Kuwait; now let’s look at the big picture,
Where are the Arab governments’ spokesmen who were shouting out loud that the global financial crisis will not affect us? In fact, where are those who had the guts to say that it’s going to be beneficial for us? ( I remember I wrote about this and said that I agree with them only if they did the right thing, but obviously they are doing the exact opposite).
And speaking of the liquidity crisis, is it possible that the gulf states have a liquidity crisis? And what about the companies? How about buying your 10% treasury stocks? Don’t you think this will give investors more confidence in your stock? Or don’t you think it's worth buying?
There is only one thing I want to say;
IF YOU CAN’T STAND THE HEAT, STAY AWAY FROM THE KITCHEN.
New Business Tragedy Is On The Way
General Motors is the second largest auto maker in the world, it employs about 266,000 people all around the world, and it makes its trucks and cars in 35 different countries.
A company like GM is certainly unlikely to go bankrupt, well, at least that what I was thinking and most people did too, but let me throw some new numbers about the 100 years old giant and let’s see if we are going to change our minds about it.
The ninth largest publicly traded company has suffered 38 billion dollars losses in 2007, they now have $16 billion in cash which means that they might fall below the minimum of $11 to $14 billion to keep its day-to-day operations, not mentioning the $3.1 million dollars hourly losses they will not be able to pay most of their creditors, and according to the US law it needs only 3 creditors to go to court to force GM to bankruptcy.
After all that, i don’t think that GM is going to make it until the end of the year, why the end of the year? Because they are counting big time on Obama’s plan of $25 billion dollars to bailout the 3 largest auto makers in the US.
If you think it’s just GM who’s going to go bankrupt, you are wrong. It’s a chain reaction, GM falls, those who gave loans to GM will fail too, and the saddest thing of all, is that 3 million people will loose their jobs, while those who made fool of every American are enjoying the billions they made on some island in the Caribbean.
I think taking the management’s money and use it to bailout the company, then through all those who were responsible for this tragedy in jail for life so they can’t get out and miss up people’s life again.
To read more about GM, please go to the following links;
http://en.wikipedia.org/wiki/General_Motors
http://biz.yahoo.com/ap/081114/meltdown_autos.html
A company like GM is certainly unlikely to go bankrupt, well, at least that what I was thinking and most people did too, but let me throw some new numbers about the 100 years old giant and let’s see if we are going to change our minds about it.
The ninth largest publicly traded company has suffered 38 billion dollars losses in 2007, they now have $16 billion in cash which means that they might fall below the minimum of $11 to $14 billion to keep its day-to-day operations, not mentioning the $3.1 million dollars hourly losses they will not be able to pay most of their creditors, and according to the US law it needs only 3 creditors to go to court to force GM to bankruptcy.
After all that, i don’t think that GM is going to make it until the end of the year, why the end of the year? Because they are counting big time on Obama’s plan of $25 billion dollars to bailout the 3 largest auto makers in the US.
If you think it’s just GM who’s going to go bankrupt, you are wrong. It’s a chain reaction, GM falls, those who gave loans to GM will fail too, and the saddest thing of all, is that 3 million people will loose their jobs, while those who made fool of every American are enjoying the billions they made on some island in the Caribbean.
I think taking the management’s money and use it to bailout the company, then through all those who were responsible for this tragedy in jail for life so they can’t get out and miss up people’s life again.
To read more about GM, please go to the following links;
http://en.wikipedia.org/wiki/General_Motors
http://biz.yahoo.com/ap/081114/meltdown_autos.html
Dubai in the eye of the storm
I woke up late today and was extremely annoyed by the fact that I wasted 4-5 good hours because of my laziness! And so, adamant on not wasting more I jumped into my jeans and left home in a rush. The outside world welcomed me with nice breeze, and I thought this is going be a good day! At least what is left of it.
As it turned out, that breeze was merely a strained gesture of hospitality from the city, because as I got into the car, I felt like I was put in a time machine and airborned to kuwaiti desert with sands attacking me from all directions! I gazed at the sky with a frown, and there were armies of black clouds masking the sun! I thought to myself, this doesn't look like dubai at all! And the sentence was vindicated by the absence of Burj Dubai from the horizon! Eclipsed by the sand crunch! This is not good for those beach goers!
However, for some reason my mind almost immediately fetched another crunch from my memories' database. I have to say that this word wasn't so popular with me, and I barely remember using it. The Credit Crunch Effect on Dubai feels almost similar to that of the sand storm! Sudden, unexpected, and without a timetable or a set of actions on the agenda! Just chaotic. More importantly both of them are creepy. Although an expact, you can not help but to be afraid that something wrong is going to happen for this city. A lot of things have been eclipsed, but there is nothing to confirm it. Recently, a company CAME OUT!. Yes, I'm using the same term because it is a similar TABOO! Damac fired 200 employees! And this is the first bite. Some rumors are circulating about Nakheel doing the same.
Dubai is a wonderful city, no matter our complains about traffic and prices and artificiality! Seriously, what did egyptians get from Cairo's authenticity?? The matter of the fact is that this city offers endless opportunities and experiences to its residents. Granted, it's not perfect. But so is every other city.
I expect other developers like Nakheel and Emaar to follow suit and start downsizing. We'll feel the heat for awhile. But I have a feeling this city is going to bounce back again. We will see the benefits of the diversified economy.
Who knows, maybe all of this is gentle reminder for Dubai that she needs to take it easy, and give herself time to grow. Afterall, God created Heaven and Earth in seven days.
As it turned out, that breeze was merely a strained gesture of hospitality from the city, because as I got into the car, I felt like I was put in a time machine and airborned to kuwaiti desert with sands attacking me from all directions! I gazed at the sky with a frown, and there were armies of black clouds masking the sun! I thought to myself, this doesn't look like dubai at all! And the sentence was vindicated by the absence of Burj Dubai from the horizon! Eclipsed by the sand crunch! This is not good for those beach goers!
However, for some reason my mind almost immediately fetched another crunch from my memories' database. I have to say that this word wasn't so popular with me, and I barely remember using it. The Credit Crunch Effect on Dubai feels almost similar to that of the sand storm! Sudden, unexpected, and without a timetable or a set of actions on the agenda! Just chaotic. More importantly both of them are creepy. Although an expact, you can not help but to be afraid that something wrong is going to happen for this city. A lot of things have been eclipsed, but there is nothing to confirm it. Recently, a company CAME OUT!. Yes, I'm using the same term because it is a similar TABOO! Damac fired 200 employees! And this is the first bite. Some rumors are circulating about Nakheel doing the same.
Dubai is a wonderful city, no matter our complains about traffic and prices and artificiality! Seriously, what did egyptians get from Cairo's authenticity?? The matter of the fact is that this city offers endless opportunities and experiences to its residents. Granted, it's not perfect. But so is every other city.
I expect other developers like Nakheel and Emaar to follow suit and start downsizing. We'll feel the heat for awhile. But I have a feeling this city is going to bounce back again. We will see the benefits of the diversified economy.
Who knows, maybe all of this is gentle reminder for Dubai that she needs to take it easy, and give herself time to grow. Afterall, God created Heaven and Earth in seven days.
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