Closed captioning of: Dubai crisis causes worldwide ripples
>>>
death camp guard.
>>>
asia markets are higher but stocks in europe are lower because of lingering concerns about financial problems in
dubai
. cnbc's
erin burnett
is there. erin, good morning.
>>
good morning, ann. this
morning dew
buy really is reeling from a debt crisis that all began last week when one of the biggest developers here abruptly announced he couldn't pay his loans. november
2008
. stars at the $20 million party for the new "atlantis"
dubai
. fast forward a year. more than half
dubai
's construction projects are on hold.
>>
dubai
doesn't have any oil. it had to borrow everything to build a massive
tourist destination
.
>>
reporter: borrowed too much. experts tell us more than half of
dubai
's property owners might default and news that one of the city's biggest developers can't make payments on his loans sent stocks tumbling around the world.
>>
dubai
hasn't dealt with its debt addiction. they are not alone. this could lead to a
domino effect
for the
global economy
.
>>
reporter:
dubai
dreamed big. an indoor
ski resort
. the highest end of high-end luxury stores. and the world's tallest building, 175 stories high with a 16,000-car garage. last month i visited with the man who built the tower.
>>
we have almost 300,000 people moving in to the city still now in these circumstances on an annual basis compared to probably 90,000 people moving in to the state of florida during the good old times. so the show must move on.
>>
reporter: the show did go on this weekend as tourists filled
dubai
's beaches.
>>
this is my first time to
dubai
. just arrived yesterday morning. really, really enjoying it.
>>
reporter: it is not so bad for
dubai
's ruling sheikh either. "forbes" estimates he's still worth $12 billion. close advisors of the rulers here tell me that
dubai
will get a bail-out from its oil-rich neighbor
abu dhabi
. but in off the record conversations, they're afraid this could be a step back for the mideast becoming more secretive as opposed to more open to investors. the ruler actually replaced some of the business leaders with his sons. that could be an ominous sign to everyone around the world.
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