Tuesday, January 05, 2010

The Burj Dubai

They must have budgeted for this spectacular show at the opening of the Burj before they had problems with those huge debts. The extravagance is quite unbelievable - see it for yourself:



The opening of world's tallest buildings very often coincided with financial crisis at the places they were build. These buildings are physical representations of financial hubris in the country or city that decided to have them. Lots of easy money (credit) flows when they decide to build them and by the time they are finished, the bubble bursts and boom turns bust. One good example is Petronas Twin Towers. When they were completed in 1998, Malaysia was in the throes of the Asian Crisis. The opening of The Empire State Building coincided with the Great Depression[Link] and was vacant for many years. Very often when planned, these buildings look viable in booming economies but when they open, they become losers.

13 comments:

Anonymous said...

Doesn't matter because they will still survive and then prosper again. Like USA and Malaysia. Aren't they still around and also OK?

So same thing with the Burj Dubai.

And same thing with the Singapore economy, up, down, up ....

You folks will suffer more, suffer less or ....

Life goes on.

sgcynic said...

We plan for the new sports stadium / hub and it can't even start construction!

Anonymous said...

Mr Lucky

The word is hubris.

Btw, did not know u are so superstitious.
Aren't u a man of science and facts?

Anonymous said...

wat about our IR?

Ghost said...

Actually, it's no longer Burj Dubai. They changed the name to the king of Abu Dhabi; the one that saved Dubai's ass with the loan.

xl said...

Mob psychology. When these symbols are up, is often near the end of good times.

Back in 2007, a friend said he bought a new car upon changing to a new job with gross $3200 pay. To me is a signal good time ending soon.

Anonymous said...

i've no problems with the casinos becoming ghost towns like tang dynasty.

better to u-turn and build some viable growth engines, than to sink into vice trade.

Anonymous said...

Sg's version of the Burj - The Pinnacle@Duxton?

Anonymous said...

Lucky,
you might want to consider another perspective that less apparent and in fact a smart move by Dubai.

Dubai has always been wealthy and face no lack of money of sustaining itself. The smart thing about Dubai is that it is attracting dumb foreign investor's money to build costly infrastructure and to escalate hype to attract more attention for investment. When all is done and thing about good enough, they will then make use of international media and neo-sayers to create the fear of the potential bubble or bust so that these highly expensive properties and infrastructure could be sell at rot-bottom price to government-related entity and businessman. It is part of their plan to work this way. You can call it scam, trickery, or con job. But these foreign investors do come in with their eyes wide open. In fact, most of these foreign investors are blinded to the fact that the local Dubai investors with affinity to the gov are colluding to rip off foreign investors. Soon, you find that Dubai is wealthy and not looming again.

I have worked in Dubai before and in charge of making investment, and therefore know much of how it works in term of such conspiracy.

That is why Singapore is following Dubai's footstep. Unfortunately the locals are made the prawn and sacrifice.

saladin said...

to anonymous @ 14:08,

sounds like a darn good scheme, get the foreigners to buy high, sell low, then come in and buy high again.
the Dubai Sheik is a clever man!
no oil and gas to sell, so can only sell sand castles and dreams.

Anonymous said...

For our Sands IR, Mr Sands is begging Mr Lee Kuan Yew to give him some LEEway (probably dipping into Singapore's treasury) to tide them over.
How is that "buy high sell low"?

Sounds to me like foreigners coming in to Singapore and ask the government to conscript their local males to become soldiers to protect their investments, and to supply them with local females for entertainment.

That sounds like the real Uniquely Singapore to me, not Dubai.

Anonymous said...

To anonymous 6/1/10 16:33,

Dubai can carry out the plan for sucking large foreign investor's money while Singapore try to follow suit but end up backfire due to their naiveness and lack of business experience. These inexperienced scholars and inept politicans running SinInvestment have totally no idea how to navigate the treacherous of business in the international world.

Even before Singapore gov start sucking foreigner's money, the smart foreigners first suck the gov money first because those foreigners has the thumb-card of Sin gov and understand the kiasu-ism and kiasi-ism of SinGov. That also why SinGov is only capable making and taking money out of local and not in foreign land. Whenever SinGov invests in foreign, they lose money. The example SAND where DBS inject $2 billions of tax-money conspired with gov is very good example.


Buying high and selling Low is indeed the Uniquely trait of SinGov, and that is what makes them Sinful.

Anonymous said...

Hmm, an irrelevant jibe,but doesn't the building looks like it's on fire from 10+min onwards with all the fireworks that it was sprouting. As the chinese would say, building on fire = inauspicious. What a way to open the building!