All Eyes on Dubai

That Dubai was teetering was not unexpected; it built things that were the very definition of conspicuous consumption. But that it defaulted on their loans nonetheless make many people nervous- how far is the contagion? Which counter party loaded up Dubai debt such that you will suffer collateral damage? How bad will this disrupt the very tentative recovery?

I don't have a lot of insight into this, but I can't help but wonder: how do you coordinate an orderly unwinding of a large international financial concern in the era of leveraged securitization?