Up to one quarter of all the cheques written in Dubai may be bouncing as expatriate residents in the Gulf state struggle as the economy slows.
Blank cheques are used to underwrite financial arrangements, such as credit cards, in Dubai, guaranteeing future payments such as a rental agreement or bank loan.
This system arose in the United Arab Emirates (UAE), which includes Dubai, because of the difficulty of doing credit checks on foreign workers. As many of these workers have now lost their jobs in the recession, the number of bounced cheques has risen.
The penalty for failing to honour a cheque is severe and some people have ended up in jail. Dubai’s police chief said this year that about one fifth of all prisoners in the emirate were there because of bounced cheques. Most of these are likely to be foreign workers.
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Ah, but the absurd carnival of Dubai was possible, because it was built on mostly American excess!
ReplyDeleteMan, I can't wait to watch this whole bit of idiocy (our culture and empire) crash! Its going to be scary, but boy do we have it coming!
This could just be the beginning of the end for Dubai if one were to take Pastor Lindsey Williams predictions based on 'insider' knowledge, seriously. He says Dubai will become a wasteland. Google his name and check out!
ReplyDeleteThat guy rambles on and on and on - Jesus - he could make his point in 50 words but will yammer on for two hours. Give me credit for trying to listen to him! Should have known better. Pastor title usually means bloated ego, vain ramblings.
ReplyDeleteVanity. All is vanity.
ReplyDelete