¶ … global financial markets' refers to "the market for foreign exchange, the Eurocurrency and related money markets, the international capital markets, the commodity market and…the market for forward contracts, options, swaps and other derivatives." (Giddy, 1993).
The article "Standing still but still standing" refers to the move this week by Dubai to seek a reprieve on its debts. The emirate's government, suffering greatly from the effects of the recession, has asked the creditors of Dubai World to stand still on repayments until May 2010. Dubai World is one of three major government-owned conglomerates in Dubai. The article outlines the shockwaves that this announcement has had in global financial markets. The markets had not only invested heavily in Dubai but had received reassurances about Dubai's finances just weeks earlier.
The article relates to the risks inherent in global financial markets. For years, Dubai's growth seemed like a sure thing, with economic diversification being fueled by oil wealth. Dubai was built, however, as much of foreign credit that the oil wealth backed. Investors from all over the world sunk money into Dubai-based projects, including those of Dubai World. The global financial crisis, however, has slowed the Dubai economy to such a degree that it can no longer meet its debt obligations. Global investors who had been counting on high returns at relatively low risk are now seeing the value of their debt holdings diminish.
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