Dubai's debt crisis in context

Posted By Annie Lowrey Monday, November 30, 2009 - 11:34 AM Share

Today, as over the weekend, markets shuddered at the news that Dubai World, a state-controlled investment company, has delayed some debt payments. Investors feared that Dubai World might default or collapse, hurting its counterparties (especially fragile British banks) and perhaps even tipping the world back into recession.

But, as many commentators have noted, even if Dubai World went totally belly up, it wouldn't have anything close to systemic effects. Why? It just isn't big enough. Here's a chart of the debt on its books, in comparison with Lehman Brothers, when it declared bankruptcy.

EXPLORE:MIDDLE EAST, ECONOMICS, FINANCE

(1)

HIDE COMMENTS LOGIN OR REGISTER REPORT ABUSE

JACKIE

8:55 AM ET

December 4, 2009

brawbuy

http://www.brawbuy.com/
http://www.myjerseysky.com/
http://www.ghdprincess.com/
Mens Timberland Roll-Top Boots
$150.00 $84.00
Save: 44% off
Timberland Roll-Top Boots menWaterproof leather for comfort, durability and abrasion resistance; Direct-attach, seam-sealed, waterproof construction keep feet dry in any weather ; Padded collar for a comfortable fit around the ankle and help keep out debris ; When rolled down the leather lining is exposed ; Durable laces with Taslan? fibers and rustproof hardware for long-lasting wear ; Footbed and inside of shoe is completely lined with soft, breathable leather ; Non-marking, rubber lug outsole for traction and durability

Passport, FP’s flagship blog, brings you news and hidden angles on the biggest stories of the day, as well as insights and under-the-radar gems from around the world.