Damage control on risk-aversion worries
Posted by themarketanalyst on December 14, 2009
The return of risk-aversion that resulted from the Dubai and Greek debt problems might not have a greater effect on the markets for the short-term. There has been lots of “damage control” in this arena as surely many might have a seen a threat to the current economic recovery. Today, the Abu Dhabi government stepped in to provide Dubai World with 10 billion dollars in financing. There have also been reassurances from the Greek and ECB authorities that Greece would not go bankrupt. However, the markets are reminded that public deficits are high for many countries and this sort of thing could pop up again in the future.
More at: Dubai’s $10B bailout by Abu Dhabi calms fears
