World markets endure knocks

Recommended Washington Post article, Investors weigh risks in emerging economies because many thought Dubai was pretty safe financially and some have pointed to that economy as one that was one of the stronger ones world wide. Part of the recommended article:

Dubai World, an investment company weighed down by real estate losses, asked creditors this week to accept delayed repayment. That led investors to doubt the financial reliability of nations even beyond the Arab world, deflating stocks in emerging markets by 2.1 percent.

Officials in Washington and European capitals continued to closely monitor financial markets Friday, worried that the Dubai debt problem would spiral into a global crisis. But those fears dissipated during the day as markets in the United States fell modestly, with the Standard & Poor's 500-stock index off 1.7 percent. European markets gained Friday, following steep losses Thursday, when American markets were closed for the Thanksgiving holiday.

While most analysts predict that a solution will ultimately be found for Dubai's debt, the unexpected events have highlighted lingering hazards that could imperil a global economic recovery. Despite a boom in financial markets over the past eight months and a return to growth across much of the world, many nations still face a vast overhang of debt from the boom years.