“DUBAI, United Arab Emirates – Just a year after the global downturn derailed Dubai’s explosive growth, the city is now so swamped in debt that it’s asking for a six-month reprieve on paying its bills — causing a drop on world markets Thursday and raising questions about Dubai’s reputation as a magnet for international investment.

The fallout came swiftly and was felt globally after Wednesday statement that Dubai’s main development engine, Dubai World, would ask creditors for a “standstill” on paying back its $60 billion debt until at least May. The company’s real estate arm, Nakheel — whose projects include the palm-shaped island in the Gulf — shoulders the bulk of money due to banks, investment houses and outside development contractors.”

http://news.yahoo.com/s/ap/20091126/ap_on_bi_ge/ml_dubai_desperate_times

And much like Toledo, Dubai, is deep in debt.

“Al-Gergawi, Bin Sulayem and Alabbar were at the forefront of a debt-driven building boom in Dubai that collapsed after the onset of the global financial crisis last year. Dubai, the second-biggest of seven states that make up the United Arab Emirates, and its government-owned companies borrowed $80 billion to finance the emirate’s transformation into a financial and tourist hub before credit markets froze. ”

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1DmeqbqWeBY&pos=6

The mantra here is, stop spending what you don’t have, not keep borrowing.