Arab Emirates Aim to Limit Dubai Crisis in Pledge to Banks

On Monday, The United Arab Emirates helped calm calm financial markets Monday with its pledge to lend money to banks operating in Dubai to prevent a run on its banks, and financial turmoil that some fear could spread globally.They did this to prevent a "crisis of confidence" that froze credit markets last year and brought the global economy to the brink of failure.Many leaders around the world have been watching the market for signs of that fears are spreading or are being contained. Early signs though, have been positive. Asian markets in their first hours were up more than 2 percent on Monday morning.While Dubai is not big enough to set off financial repercussions outside the Middle East, the main fear is that investors could flee risky markets all at once in search of safer havens for their money. These fears have been reduced after the United States anounced a huge bank bailout.On the contrary, other analysts believe that promised funds to help Dubai banks might not be enough to keep anxiety from jumping to other countries and institutions.

The United Arab Emirates actions, I feel, are very smart. I agree that they should help DUbai so to prevent any damage their owns banks. I think that other groups should help dubai to prevent further crisis. Although, in Asia, things are looking positive I think we should still not get over confident like last year to prevent yet another recession.