The collapse of the economic venture in Dubai is well known. They built the islands and the homes and the tall buildings and some foolishly rich people bought. Sadly, most of the properties did not sell and the homes and building are sitting vacant. Dubai is in technical default on some fifty Billion in debt. The investors in the United States will see that sad reality today. Oh Boy What A Mess! Ditto the commercial property in the United States. We built it and they did not come. When I am at home, I live in an eight bedroom monstrosity in San Diego close to Sorrento Valley (Our Southern California version of Silicon Valley). For miles to the left of me and miles to the right of me there are vacant buildings that are for sale and/or rent. They are being repossessed by the banks left and right, but the banks now realize that the empty buildings are worth thirty to forty cents on the dollar. Just like residential real estate, all of the medium to smaller banks that do commercial real estate business in southern California are technically bankrupt, but they are carrying these non performing assets on their ledgers at supposedly full value. Soon the FDIC will have to foreclose on these banks and tell them the jig is up. Time to start over. Might as well get used to it as we will be in this Depression for many a year.