Global stock markets were left reeling yesterday after the city-state's spectacularly debt-ridden Dubai World holding company asked for an extra six months to pay the $4bn (£2.4bn) chunk due next month. In London, the stock market dropped by 3 per cent, its worst day since March. The French and German markets fared little better, and America's Dow Jones was only saved by being closed for Thanksgiving. Even sterling wavered, falling to its lowest rate against the euro for a month. But it was Britain's battered banks that were the worst affected. Fears over the extent of their exposure to Dubai's $80bn debt knocked nearly £14bn off their value by the end of the day.
How about wood soaked in gasoline for building new homes? In the end, might makes right. Nothing has changed since the caveman.
Well, £14bn ($23bn) is a substantial fraction of $80bn. This assumes 72 cents on the dollar will be recovered from Dubai's debt. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
