This is clearly a big photo-op for Kim Jong Il and the NK media reported that Clinton delivered a "expressed words of sincere apology to Kim Jong Il for the hostile acts committed by the two American journalists" and also conveyed a message from President Obama about the need to improve relations between the two countries." (Slate)
While the Obama administration denies this, the fact Clinton was allowed to go signals a major shift in foreign policy by the US towards the rogue regime. It could be laying the groundwork for good relations during a power transfer from Kim Jung-Il to his son which may happen sooner than most think.
It's this transitional period that will be extremely dangerous and may see NK become more belligerent with missile launches and fishing boat seizures. Internally, North Korea could implode and their nuclear material may be at risk. An incident would garner world-wide attention and a response from either China or the US. China's biggest concern would be for a mass of North Koreans coming into their country as refugees. Japan and South Korea's biggest concern would be for a missile to be launched towards them.
While I was at the Pacific Economic Conference in Vladivostok, Russia, attendees were very concerned over the developments in North Korea. Everyone was worried about what would happen to Russian oil and natural gas exports should North Korea explode.
North Korea is inherently unstable. During a power transition, it will be even worse and more difficult to predict the outcome.
Markets should have a strong risk off reaction with equities sold, bonds bought, and US dollar bought.
Watch for it.