From Fazle Rashid

NEW YORK, Feb 12: The boom is over. With the economy on free fall, Dubai, once hailed as the economic superpower, is now cancelling on an average 1500 work visas every day. Dubai is now looking like a ghost town, the New York Times (NYT) reported today.

The authorities in Dubai have warned newspapers not to spread panic and not to report anything that would further damage the economy. The labour ministry sources would neither confirm nor deny the news about government cancelling 1500 work visas everyday. There are more than 3000 abandoned cars in the parking lot of the Dubai airport, left by debt-ridden immigrant workers.

The analysts say the crisis will linger, leaving long lasting effects on the seven-member emirate's federation. That economy is sliding down perilously is borne out by the fact an engineer with four years of experience was offered 15,000 dirhams a month: it has now been slashed to 8000 dirhams.

In Washington, the US bankers who appeared before the House Financial Services Committee yesterday as was widely expected went through a grilling. "There is in the country a great deal of anger about the financial institutions including those represented here", said Barney Frank, chairman of the committee. But it would be "impractical to scarp the entire financial system and start anew", he was quoted as saying.

"We have no option if we are to get credit flowing in this country other than to work with the existing institutions", he said.

In the midst of deepening economic gloom 700 Merrill Lynch worker gave themselves hefty bonus packages though it lost $27 billion. But the days of squandering investors money are over. Nearly 100 federal banking regulators descended on Citigroup's head office in New York yesterday.

Dozen more fanned out through Bank of America, JPMorgan Chase and other big banks across the country, NYT reported.

Regulators have been empowered with expanded authority to decide which banks are strong enough to survive on their own and which are eligible for bailout money with strings. The examination of 18 of biggest banks will commence immediately.

Members of the Congress attacked the bonuses, lending practice and perks of bank executives. Vikram Pandit, CEO of Citigroup said he would slash his salary which totalled $1.0million to $1.0 and forgo bonuses until his banks sees profitability.

In the United Kingdom, the Bank of England pledged it will start to use its power to create (print) money to buy assets in the economy because traditional monetary policy has run its course. The total number of people out of work in the UK continued to rise sharply and is close to reach 2.0 million mark.

The British Prime Minister Gordon Brown said there is sadness and sorrow and we will do what we can to help people back to work, a reputed paper said.

France like the US has imposed restrictions on bonuses to bankers, traders and fund managers in an effort to avoid excessive risk taking in financial markets. The European Union (EU) has scheduled two emergency anti-recession summits in an effort to supress protectionism, sustain jobs and prevent the bloc's political fragmentation into old and new members. The two meetings are to be held in Brussels on March 01 and the second one Prague in May.

China will continue to buy US treasury bonds even though it knows that dollar will depreciate because such investments remain its only option in a perilous world. Increasing US budget deficit and its potential impact on the dollar have raised question about the future of Chinese appetite for US debt, a reputed paper said.

Kellog Brown & Root, the engineering and construction company and its former parent Halliburton which once employed former vice-president Dick Cheney have agreed to pay a combined $579 million to settle US allegation that the company bribed Nigerian officials to win contracts.

On the political front in South Asia, India's Hindu nationalist opposition is pressing the government for tougher action against Pakistan for its alleged involvement in Mumbai carnage.