Early signs in the US are that the Dubai World default may not really mean too much. Sure US Stocks fell by more than 1%…which isn’t too uncommon nowadays…but conversely, US Bond Yields are up suggesting there isn’t too much “rush to quality”. Time will tell but I’d suggest this is quite a tame reaction.
Nouriel Roubini, famed GFC forecaster, apparently believes this may be the first of more sovereign defults…if so, then that’s a different kettle of fish. But at this stage…the US markets aren’t convinced.