Dubai: Debt Desert Disaster

Wall Street stumbled on worries about Dubai’s debt problems, with the Dow Jones ending down 154 points on Friday. The half-day session was the US markets’ first chance to react to news that state-owned Dubai World had asked for more time to repay its $60 billion debt. American markets were closed for Thanksgiving when other world markets all suffered steep losses. Alex Gallafent reports.

Audio: BBC, PRI & WGBH's The World, Host: Marco Werman.

Meanwhile, in the Mojave...

"CityCenter is fully funded, on schedule and ready to begin welcoming guests starting next week," MGM PR flack Yvette Monet said in a statement that the joint venture is unaffected by Dubai World's announcement.

CityCenter is an $8.5 billion gamble made before Las Vegas, too, became a zone of highly concentrated partially complete, or completed (yet empty) construction. It's half-owned by MGM Mirage. The other half is owned by (creditors of) Dubai World.

So far local media is dormant. And the all-in bet that the high end market bubble would never burst: A 67-acre development of plush resorts, condominiums, a retail mall and one casino on the Las Vegas Strip will start opening in phases on December 1.

Is Dubai too big too fail? Maybe to Abu Dabi.

Earlier this week, officials in the Gulf state announced they needed more time to repay $60 billion in money borrowed to build lavish hotels, manmade islands and the world's tallest skyscraper. World markets slumped because of the news. Economist Simon Johnson, former chief economist for the International Monetary Fund, and Christopher Davidson, author of Dubai: The Vulnerability of Success, discuss the big impact made by the tiny emirate.

Audio: NPR's All Things Considered, Host: Robert Smith.