Description: Although there’s little direct exposure to Dubai World’s default risk, U.S. financial institutions could take major indirect hits.

Source: CNNMoney.com

Date: 11/27/2009

Link:  http://money.cnn.com/2009/11/27/news/companies/Dubai_bank_risks/index.htm

Questions for discussion:

• Summarize the reasons for concern about how this problem might affect U.S. banks.
• Do you believe this concern is justified? Explain your thinking.
• What would justify the debt created by Dubai in the past?
• Is that argument still justified for the future? Explain your thinking.