Steve O Posted November 27, 2009 Posted November 27, 2009 Going to be black Friday in more then one way
Magox Posted November 27, 2009 Posted November 27, 2009 Going to be black Friday in more then one way I wouldn't read too much into this yet. Dubai World is in danger of defaulting in one of it's debt obligations, which the government of Dubai probably won't allow to happen, and the fear is that if they may default, then maybe there are more emerging market debt obligations that could be in danger of defaulting as well. Remember, it's Thanksgiving week, very light trading volumes, which means that the movements are usually much more volatile, and we've had a tremendous rally. So this is a good time for the market to take some chips off the table, pause and reassess. We'll find out next week how serious this is.
John Adams Posted November 27, 2009 Posted November 27, 2009 We are rather curious for rejoicing in bad news. These posts never get made when the Dow goes up 150 points.
Magox Posted November 27, 2009 Posted November 27, 2009 We are rather curious for rejoicing in bad news. These posts never get made when the Dow goes up 150 points. I think it's human nature, sort of like the local news, good news aren't reported that often, however violent crimes usually is the feature of the 7 o'clock news. Having said that JA, I know you keep up with the markets a good bit, the fact that Dubai, inarguably the financial hub of the middle east, being in danger of defaulting on it's debt obligations is significant. My personal feelings are that this is an isolated situation, considering the rapid over expansion of all those real estate projects in Dubai. So, they probably were more exposed to risk than in most other areas.
John Adams Posted November 27, 2009 Posted November 27, 2009 I think it's human nature, sort of like the local news, good news aren't reported that often, however violent crimes usually is the feature of the 7 o'clock news. Having said that JA, I know you keep up with the markets a good bit, the fact that Dubai, inarguably the financial hub of the middle east, being in danger of defaulting on it's debt obligations is significant. My personal feelings are that this is an isolated situation, considering the rapid over expansion of all those real estate projects in Dubai. So, they probably were more exposed to risk than in most other areas. Yeah. It's a deal but probably not a huge one. Dubai, while important, is not a worldwide-hub and this will stress but not be that widespread of an issue. Today's blip was caused by a solid punch of bad news and the low volumes. Losing 1.5% in a day after all the up days this year--and last year's free fall--feels like nothing. There are plenty of other "shoes to drop" on bad market news in the future but this isn't one I'm worried about.
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