Dubai

I have come across stories over the past two weeks that are not getting any national recognition, but I believe can make a huge impact on the “recovery.” These stories stem from a more municipal level and perspective.

Two issues that have been looming in the world economy keep getting attention: Greece and Dubai. Let’s start with Greece. It turns out that Greece has been “hiding” debt problems for years.

This question has been nagging the industrial world since the discovery of the first oil well is what happens when the wells begin to run dry. The oil companies, the people who manufacture cars and airplanes and legions of scientists and inventors have all been planning for that day.

U.S. stock index futures soared after Abu Dhabi announced a $10 billion infusion into cash strapped Dubai World. This news helped alleviate some of the concerns that have been holding back the rally in equity markets since the Dubai debt news broke in late November. December E-mini Dow futures rallied to a new high for the year.

The U.S. Dollar is backing off a two-month high versus a trade-weighted basket of currencies on the news that Dubai received $10 billion in financing from Abu Dhabi to pay part of the debt held by state-owned Dubai World. This event is helping to alleviate one of the concerns which drove traders into the Dollar last week, the others being downgrades in Greece, Portugal and Spain.

Editor Justice Litle explains how the financial crisis unfolding in Dubai is typical of bubbles.

It was another positive day for stocks and commodities yesterday as the major indices climbed higher for the second day of this trading week. Volume surprised investors as the S&P500 index, among other major indices, were driven higher on increasing demand.

U.S. equity markets are trading higher this morning as concerns over Dubai issues subside. Traders are now downplaying the debt issues in Dubai and calling it a local issue. This is helping to weaken the Dollar and increase demand for higher yielding assets.

The U.S. Dollar is declining overnight as speculators are downplaying the debt problems in Dubai. Over the week-end, the United Arab Emirates central bank said it “stands behind” the country’s lenders. This helped to ease concerns that the state owned Dubai World will default on its debt. Traders now believe that this is a local economic problem rather than one with global ramifications.

The U.S. Dollar is climbing sharply higher as global investors dump stocks and commodities on concerns about Dubai World’s debt problems. Fear is racing through the global investment community, making lower-yielding assets such as the Dollar and the Yen more attractive. The situation in Dubai began to break late Wednesday night and spilled over into Thursday while U.S.

European shares have been hit by concerns over Dubai's financial health, after a government-owned company asked for an extension on repaying its debts.

As a non correlated asset class, films and film finance has outperformed every non correlated asset class in the world if you look at the more than $6 billion dollars poured into motion picture finance deals in the last 3 years, the IRR across the spectrum for both studios and independents are resilient to global economic declines in other industries.

WWA Group, Inc. announced the results of its most recent Dubai auction, which was held between February 21 and 23, 2009. Gross auction sales surpassed $22.5 million, involving the participation of more than 410 registered bidders from 29 countries. More than 1,300 items were sold to 230 successful bidders. The company anticipates holding five more auctions in Dubai this year.

WWA Group Inc. (WWAG.OB) engages in the trading and auctioning of transportation and industrial equipment worldwide. The company’s primary base of operations is in Dubai, U.A.E. Since 2001, WWA Group has auctioned more than 66,000 pieces of construction equipment to buyers from 67 different countries.