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The news of the potential default by Dubai World has roiled markets all over the world. Strangely, one of the side effects has been a plunge in the price of oil -- thereby making the situation for the oil rich area worse. It will be a real test of the world markets to see if the drop is a temporary one or if it presages the start of a longer term decline based upon financial fears. We will soon see if upset in the Gulf is sufficient for nervous traders to dump positions and then to dump more around the world.