So the emperor with no clothes in Dubai has finally been seen for what it is. News that Dubai World – who brought you such extravagances as “The World” artificial island not to mention the world’s highest skyscraper – has asked its bankers to give it a 6-month holiday from mortgage repayments. (Note to self – must try this with my mortgage provider!). The Australian stock market reacted on Friday with a rather predictable “crash” of some 3%. However by Monday after noon the ASX200 was back up 2.5% Australian investors having discovered that no major Australian bank was exposed to Dubai’s toxic real estate market. And that the United Emirates (of which Dubai is a member state) have come to the party guaranteeing individual states.

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