Times of India: Lehman ghost? No, this isn't new demon brothers - by Prabhakar Sinha

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The Dubai fiasco reveals that the impact of the global financial crisis is not completely over, which started in September 2008 with the bankruptcy of Lehman Brothers, affecting flow of funds to developing markets like Dubai. Valuation of assets like real estate got hit. At the same time, rise in the interest rates because of the liquidity crunch affected viability of many projects. Executive director of Pricewaterhouse Rajan Wadhawan says some more places like Dubai will tumble because of the change in the financing mechanism after the global financial crisis. The Dubai crisis will affect the pace of economic recovery, he adds. However, Datar accepts that in the near term, risk appetite of foreign investors might wane and capital might flow towards safe haven assets like the US treasuries. But, he maintains that, once the dust settles, the medium-term story of capital flows into emerging markets will continue due to their robust fundamentals.