Interpreting Middle East Economic News and Analyzing Market Trends

Archive for May, 2014

Shale boom reaches stall speed, stage set for epic collapse

Bakken Shale Production vs Number of Wells

Source: Zerohedge (click on chart for larger image)

We’ve reported on the shale oil hype in the past (most recently here, here and here), but now there is clear evidence that this bubble has reached its peak and is set for disaster.  Here’s the story from Bloomberg:

 

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Worldwide youth unemployment stuck at record levels, outlook for the Middle East is especially poor

Youth Unemployment Global

Click on map for a large image

We reported last year on the terrible outlook for youth unemployment around the world (read the story here).  The map above is an update on this global problem.  The situation is particularly bank for the Middle East and Southern Europe.  The are no indications that this problem will go away any time soon.

 

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Qatar invests 1.75 billion euros in Deutsche Bank, but does it know what it’s investing in?

Hamad_Bin_Jassim

Investment company owned Sh. Hamad Bin Jassim Al-Thani invests in Deutsche Bank

 

Deutsche Bank has teamed up with a Qatari investment company owned by Sh. Hamad Bin Jassim Al-Thani to help raise 8 billion euros in fresh capital for the bank.  DB claims its for expansion plans, but this comes a year after it was forced to raise 3 billion euros by banking regulators.  Are any alarm bells going off?  If not, then add to this the fact that Qatar’s 1.75 billion euro investment was purchased at a 25-30% discount… are the bells ringing yet?

 

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The Dubai Financial Market’s amazing rise…

DFM 5-5-2014 - Zerohedge

Source: Zerohedge

We’ve mentioned the amazing rise of the Dubai Financial Market in previous posts (here) and have been watching the rise in 2014, which has been even more amazing, up over 64% so far this year.  Remember what happened the last time the DFM took off like this?  Take a look here and see…

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Is another real estate bubble forming in Dubai?

Rents are up as much as 40% in some areas of Dubai and the stock market is up over 50% so far this year… add this to the 100% rise in the stock market in 2013 and you can see how things seem to be getting out of hand again.

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