Here's how this particular disaster is described in a Newsweek Magazine article called The Lehman Brothers of the Persian Gulf:
Like Lehman, Dubai made the mistake of borrowing short-term to buy long-term illiquid assets. The holding companies Dubai World and Nakheel borrowed tens of billions of dollars from global capital markets and used the funds to buy stakes in Cirque du Soleil and Barney's, yacht businesses, financial services companies, and, above all, real estate. In much the same way, Lehman plowed its hundreds of billions of borrowings into illiquid investments such as commercial office buildings and apartment complexes.
And, as I'm sure some longtime Tattler readers will recall, one of the places Dubai parked some of that poorly invested money was, you got it, One Carter. Here's how we broke it down last December in an article entitled One Carter Bailout Unlikely --- At Least From Dubai:
As we noted in previous articles, the Dubai (United Arab Emirates) based ownership of John Laing Homes - the international developer known as Emaar - now finds itself saddled with a bit of financial dead wood right here in our little city. As erstwhile interest holder in the One Carter Estates property, Emaar now finds itself facing the possibility of having to swallow this highly leveraged piece of muddy real estate. A holding that they couldn't even give away at auction last week.
Of course, the Guys From Dubai later went on to walk away from this troubled semi-vertical dirt patch, leaving the unfortunate lender, Capital Source, to try and make something out of the mess.
(As an aside, if Brad Pitt had been a Tattler reader he could have seen the Dubai disaster coming, and wouldn't be facing the kinds of losses he is threatened with now. See an article regarding Brad's disastrous Dubai debacle here.)
Now there is an alternative theory to what has happened to Dubai. Because it could also be the very same thing that happened to the previous despoiler of this stricken property, the now nearly invisible Dorn Platz. And that is both might have fallen victim to the One Carter Curse.
Now I will admit that this is a highly controversial theory. And a few have contested its validity. But there are also those who firmly believe that One Carter Estates sits right on top of a Gabrielino/Tongva tribal burial ground. The matter did come up during the ill-fated hearings here in Sierra Madre some years back when the now infamous Gang of Four City Council enabled Dorn Platz's rape of what was up until then a near pristine hillside forest.
And even if it isn't a Gabrielino/Tongva burial ground as some claim has been proven, how can we say that it wasn't a final sacred resting place for some of the previous inhabitants displaced by this tribe centuries ago? The Chumash for instance? Or some unknown peoples who came before? Maybe those mountain inclines aren't the only bad Feng Shui here.
Given what has now happened to both Dorn Platz and the Emirate of Dubai, I can only surmise there might be some forces at work here that are awfully upset with these guys. And their respective dismal financial fates must be something quite discomfiting to those now being so supernaturally chastised.
To which I can only add one other thing. Capital Source? You didn't by any chance put a lot of cash into condos and office buildings back around 2005, did you? Along with that money you invested in One Carter?
Because if you did, then you could very well be the next in line as a victim of the One Carter Curse.