Originally Posted by
FD1971
I still like the spin he puts on the losses from the hedges, which went down the hill some years ago.
Anyway, who cares whether the debt of EK or the owner of EK increased by nearly 3 billion?
It is one big cash Register after all...
I would love to do business like this, but I guess I have to move to the land of (financial) fairy tales in order to do so.
And pointing out the obvious, that every state-owned airline received subsidies like crazy, has been my main argument, so Mr.Clark, so I really urge to come up with something different to keep us entertained.
He isn't spinning - he's making an outright denial that he lost 3-4bn USD on those hedges. I think the final value was in the order of 700m USD judging by the published accounts. We'll never know unless Morgan Stanley start to disclose documents (or the other counterparties, if any).
Still, making a loss doesn't make you "dirty", as said before.
The idea that all of Dubai's GREs are one big sovereign entity is now, after the Dubai World default and restructure, completely discredited. Every commercial lender now knows that each entity they lend to is pretty much on their own and has to be evaluated without the idea there is an implicit sovereign guarantee.
Dubai is not one big cash register with pooled money and resources. There isn't even any money in the register!