Stocks slump as news of Dubai debt crisis sinks in

Recently reported, the Dow Jones industrial average closes down 154 points, this is an improvement compared to previous losses. Although the Dow Jones improves, the recent economic crisis in Dubai negatively effects the world economy.Dubai announced that it would freeze its debt repayments. THis has caused the many world stocks to go down. Although the Dow jone's index improved, many of the other major United Sates' indexes have plummeted. Stocks in Hong Kong's Hang seng fell 4.8%, and Japan's Nikkei fell 2.9%.Meanwhile, In Europe, stocks in France, Germany, and England have gone up 1%. The United States were closed on Thanksgiving so today will show how Wall street reacts to this. Dubai announced on Wednesday that it would freeze its own debt repayments in order to restructure Dubai World, its biggest investment holding company. The chairman of Dubai's Supreme Fiscal Committee says that they have everything under control despite evidence against that. Sheikh Ahmed bin Saeed Al Maktoum said that "This is a sensible business decision", adding that Dubai's economic fundamentals are sound and ensure it will remain an attractive regional market.Although the sheik stated this, Dubai's creditors, along with most of the global banking and financial community, seem to disagree.

http://www.latimes.com/business/la-fi-markets28-2009nov28,0,3567649.story

I dont know how the Shiek of Dubai can say that they have everything under control if they froze their own debt repayments. I think that the United States markets will suffer from this because Dubai is avoiding repaying their debts. The longer they do not repay, the longer it will negatively effect the world economy. As told in the article, the rising economies in Hong Kong and Japan are being negatively effected. Also Dubai's own creditors believe that the Sheik, in fact, does not have everything "under control".