It was recently announced on national media that Dubai real estate is in trouble to the tune of billions of dollars and the investors who placed large sums of money in that market might not get the returns they expected.

It certainly came as a shock to the world when the government of one of the world's leading real estate investment capital declared that they were not to transparent with their investors and may not be able to repay the massive loans in time.

This crisis comes as no surprise in the wake of the state of the rest of the world and it was truly folly to expect Dubai to be resistant to global market pressure. Many people have always regarded Dubai as a wealth mecca and I also still believe that they still deserve their title.

The reason that the market reacted so badly was because of the announcement and the shock that the impossible just happened. Investors have poured large sums of money through mortgage lenders of their countries and that of Dubai as the real estate market took a beating. There was a slow down but with the natural resources it was assumed that the money will continue to pour in.

This was an assumption based on how honest the money managers were with the general public. I believe the problem faced with Dubai has to do with aggressive over expansion to build infrastructure while holding the misguided belief that money will always flow.

It is the same problem the late Michael Jackson faced, you have $50 to 70 million coming in but you have $80 million in ever increasing debt while ignoring the financial warning signs and going out to spend more borrowed money. That is having the lifestyle of a billionaire while being only a multimillionaire.

As in the case with Dubai, living like a state with well over 10 trillion dollars while only having 1 trillion dollars in income. It does not matter how you slice it, emotions remain the same in all humans regardless of wealth, religion or ethnicity.

If you dig really deep into the root cause of this entire crises you will see that the common denominator is human emotion and belief in the infallibility of their own judgment. A child who learns how to save up to buy a toy exercises more financial respect than a millionaire adult who takes out a loan to buy their toy while they cold have just waited for their income to cover the cost of the purchase.

This article is not to disrespect anyone but it is to help those who are on a collision course in their financial lives. Dubai real estate will recover in time but if the lessons are not learned the crises will return once again.