Economic Numbers Have Room To Disappoint Ahead of Friday!
Last Friday, traders had planned on a quiet half day of trading. Dubai World announced that they would seek debt restructuring and they needed an extension on a $5.7 billion loan. The markets reacted with a steep decline and the S&P 500 closed 20 points lower. First, let's put the Dubai issue into perspective. It's no secret that they overdeveloped and that commercial and residential buildings are half-empty. It was just a matter of time until loan defaults surfaced. In total, analysts have projected that this problem could reach $50-$70 billion under worst-case scenarios. That pales in comparison to the banking …
November 30, 2009
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