Not exactly Straits Times, but printed in the ST is a story by AFP on Dubai. The picture is certainly an old one. We know as were living in Dubai Marina during our first six weeks in a serviced aparment - The Nuran, paid for by the company.
I would have thought an article like this should have graced the pages of the newspapers here, but no. To me this place is in denial. When you take such a stance you have to strike a careful balance between looking real stupid and credible. The latest? They are optimistic that there will be a recovery in the second half of 2009.
On the other hand, Singapore is not in denial but prefers not to frighten its people how bad this downturn is going to be.
As for the stock market rally going on now in the STI (elsewhere too)? Well, a lot of it would probaby have to be returned. There had been recessions since the last world war, but this one is a Recession. A big "R" over the many small "r"s. I am only hoping that we don't trade this "R" for a "D", which never comes in small "d"s. Why? Nobody has any blinking idea on how to unlock this credit crisis because nobody trust anybody any more.
What about fiscal stimulus? That is only to buy time and I hope it works. It is like the doctor's rest or MC. It usually works because somehow the body's immune system gets to work and it is OK afterward. Whoever says an economic and financial recovery can be understood? So markets please rally on, but this time I think you are way too early as the debt problem cannot disappear overnight, and we have not figured out how to grow quickly without huge amounts of debt. This in a nutshell is Dubai's problem.
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