Throughout Thanksgiving weekend, I kept on thinking about what other implication will the Dubai default have on the financial market around the world. Dubai is out of money because they spent their way to prosperity. You know, just like Americans, what a shame too. Dubai is out of cash, and only 29 days left until Christmas. Maybe Goldman Sachs will float them a big fat Christmas loan.
US market was down over 200 pts just on the fear of Dubai going bankrupt over $60 billion. Now that may sound like a lot to most of you, but that number is only 1/3 of what we gave to AIG. If you look at Dubai on a map, they are a dot somewhere on the tip of Saudi Arabia. If a small nation can cause this type of fear in the market, think what will happen when some eastern European nations start defaulting on their debt(Greece...). Instead of seeing the DOW down 200, it will be down 2000 pts. This is the danger we traders are facing during this period of financial uncertainty.
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