Dubai Debt points to vultures soaring over banks

"In the longer term we have no doubt that things are going to recover."- Arjuna Mahendran, head of Asian investment strategy at HSBC Private Bank in Singapore. South Korean construction firms have about 40 projects there whose remaining work is valued at as much as $3 billion. South Korea's government expected the problems to have minimal impact.

SHOOT: No doubt. Today a South African commentator on the Money Minute [Greg Volkwyn] said that while markets fell down earlier in the day on this news, as they should have, they recovered well. He described the level of exuberance in the market as unrealistic. Listen here: http://www.pod947.co.za/podcast/minute/Moneyminute20091127.mp3
The timing of the announcement [ahead of weeklong pilgrimmage in Mecca] and Thanksgiving holidays is very interesting. Any ploy to trick reality, but it's always just a temporary postponement.

clipped from news.yahoo.com But earlier concerns that the crisis might trigger another major financial meltdown seemed to ease Friday after some analysts downplayed the risks for U.S. banks. U.S. stocks rebounded from their earlier lows as investors grew confident that the damage might be contained. Still, the unfolding crisis in Dubai pointed to the vulnerability of the global economy despite recent signs of recovery. In recent years, Dubai has expanded with ambitious, eye-catching projects like the Gulf's palm-shaped islands and the world's tallest skyscraper in hopes of becoming a tourist friendly and cosmopolitan Middle Eastern metropolis. In the process, however, the state-backed networks nicknamed Dubai Inc. have racked up $80 billion in red ink, and the emirate may now need another bailout from its oil-rich neighbor Abu Dhabi, the capital of the United Arab Emirates. With Dubai World hard pressed to pay its bills, banks could take the biggest hit, analysts said.