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Old 05.02.2009, 19:54
Canadian_dude Canadian_dude is offline
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Re: Dubai... a giant Ponzi scheme?

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The Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The perpetuation of the high returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going.

Is that really the scheme being used in Dubai ?
Yes and no. The new "currency" being invested is also the people. People want to make money in Dubai, so they come buy an appartment there, a car, live their life their, which in turn feeds the speculation, the second the inflow of people and money stops... there is a problem. Nobody lives in Dubai to simply live there, everybody is temporary. Again 800,000 locals and 3 mil expats. If the foreigners leave... disaster.
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