Dubai in Debt. Bingo.

Many years ago, I drove from Longmeadow to Springfield. Longmeadow is much higher in elevation than Springfield, and as you go down the highway towards Springfield, the whole city comes into view. At that time, I noticed a new building that towered above everything else. This build had been built and owned by Monarch Insurance.

I shorted the stock in the mid 40's but the price is unimportant. I covered with a 50% gain in the low 20's when a local broker told me that the directors of Monarch were buying heavily.

Wrong.

I should have shorted more. The company went bankrupt and some of its long-term employees had all their money in the stock. They also went out.

In the recent quarterly review, the Williams Inference Service had a picture of tall buildings and Dubai had the tallest. Last week, I read that Dubai has encountered trouble in paying its debt.

Bingo.

-Jim
Above Right: Chart from "The Property Report", Wall Street Journal August 19, 2009

Bottom Left: Dubai's Tallest Building