The funny thing about the market reaction to the Dubai (although not so funny when you were holding calls on all risk currencies!), is the commentary of analyst saying that it was 'knee jerk' or a 'storm in a teacup' etc. Still we had a nice juicy sell off. So the overall point (jitters) is there is still excesses in the system, no matter if Dubai was considered small debt (80 billion), the overall concern I would have is how an oil exporter can be so indebted and needs to be bailed out by Abu Dubai and UAE banks. In my opinion this is a warning and if you like a Black Swan event; which should be factored in as a follow on to debt/bond markets problems in 2010.
All market supports held with the sell off. Nevertheless it's a precursor.
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