A "contrarian" view

News. Abu Dhabi, wealthy capital of the United Arab Emirates, will "pick and choose" how to assist debt-laden neighbor Dubai, a senior official said Saturday, after fears of a Dubai default sent global markets reeling.

"We will look at Dubai's commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts," the official of the Abu Dhabi government told Reuters.

As world markets absorbed the shock of Dubai's debt crisis, Sheik Mohammed bin Rashid Al-Maktoum, the ruler of the once-booming city-state left town for an important meeting in a desert palace. His hosts: the leaders of neighboring Abu Dhabi whose balance sheets are flush with oil revenue.

A "contrarian" view. If this one remains an isolated case, the amounts involved are minuscule when compared to last year problems. The markets will soon recognize they over-reacted and will rise again soon.

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