Is Dubai the world's biggest subprime fiasco waiting to implode?

Dubai is tethering..and could well be on the brink.

"( In )Dubai feverish attempts are apparently being made by the sheikhs to ward off total economic collapse. Expatriates are deserting the Gulf state almost as quickly as they can find seats on airplanes out. Huge swathes of apartment blocks lie empty and, my source tells me that those wanting to sell out are being pushed into time-controlled sales, supported by the government, not that there are any buyers, as too much coming on the market at once would lead to the equivalent of a run on a bank. And given the trillions of dollars in investment that have gone into the state a run on Dubai would be disastrous for the global economy and the banks that are involved. It is effectively another subprime mortgage fiasco waiting to happen. You might want to question your bank's exposure to Dubai. Undoubtedly the risk is spread globally just like the subprime markets." Lawrence Williams, Mineweb, April 2009