TGI Black Friday? Not So Fast

TGI Black Friday!  Not if you’re in Dubai.  It’s not often that you get a sign from the Lords of Shopping, but I believe we all got a huge one on this, the holiest of holy holiday shopping days. Dubai can’t pay its credit card bill because they don’t know how to stop spending money.

As you may know, they’ve been acting like it’s “Black Friday” every day for several decades. This is the city-state that made itself famous for building man-made islands, the world’s tallest tower and an indoor ski slope. No doubt they bought all these items on sale.

What’s behind this crisis and what can you learn from it?

First, I don’t have much information on this.  I’m still recovering from jet lag and the good folks at Dubai Central have released very little information.  Also, they made sure to make the announcement while I was celebrating Thanksgiving.  Very inconsiderate.  But you don’t have to be an economist to figure out that they spent money they didn’t have and now they can’t pay their creditors.

There is a huge lesson here for consumers:

Just because somebody ignores a problem doesn’t mean there isn’t one.

Sure it’s “Black Friday,” but there will be a time in the very near future that you’ll have to pay your bills.  Just in case you aren’t a city-state yourself, remember to buy in moderation.  This is especially important today. ”Black Friday” is designed by merchants for merchants – not for you.

Sure you  might get a good deal on some things, but you’ll end up paying for it by purchasing more crap than you otherwise would.  Do you really need more junk in your closest?

I will guarantee that the Dubains never expected to be paupers, but the day of reckoning has come.  Don’t get caught by surprise yourself.

Do you take advantage of “Black Friday” or do you end getting caught up in the frenzy?  What have your experiences been?

On to the Wealth Pilgrim Pick of the Pack:

Matt Jabs comes up with the coveted prize again for his political activism.  He wrote a fantastic piece on credit card reform and what we can do about it.  Nice work Mr. Jabs…or should that be Senator Jabs?

Hungry for some great ideas on how to deliver criticism? Financial Samurai has the answer.  It’s a deliciously written piece I know you’ll enjoy.

The Digerati Life gives you some pointers on how to use Netflix versus Blockbuster. Since this is prime moviegoing season, it’s a worthwhile read.

Moolanomy offers some ideas on how much debt is too much.

Christian Personal Finance offers some thoughtful Thanksgiving quotes.

Weakonomics gives us his two cents on how Black Friday works.

The Oblivious Investor wrote a very smart post on diversification and correlation.