Dubai Financial Crisis

There is a lot of talks in the past 2 days around the world regarding the recent Dubai financial crisis.  Dubai's state-owned Dubai World has asked for a moratorium on its debt scheduled for December.  This has triggered reactions around the world with major bank stocks going down by around 3% in European stock exchange; Sensex going down on fear by 500 points on Friday later to be recovered by LICs aggressive buying and Finance Minister Pranab Mukherjee's statement that India may not be affected by the Dubai crisis.   Dubai World has around $59 Billion in debt from various banks all around the world.  I read articles in net in which, many opine now that Dubai's projection as financial center itself is a big illusion which has sustained for about 20 years to come out naked in light now.

Some of the links on the same:

Financial Times 

Financial Express by Ajay Shah