The Collapse of the 'Dubai Miracle'

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Two weeks ago, the world of finance was told that Dubai had weathered the global recession.  But last week, markets around the world were shaken when Dubai World, the country's major developer, asked for a six month delay in payments on billions in debt.  Now, global financiers are claiming they've been misled. Should investors have seen it coming?  What's the possible impact on the global economy? Is the next step a kind of test for Islamic finance under Shariah law?

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Host:

Warren Olney