American banks and stock market operate in a system that is completely difference from Nigerian Banks and Stock Market. American Banks and Stock market are credit oriented that revolves around credit. The problem America Banks and the Wall Street are having today are as result of collapse of the housing market. In American system most American do not own their cars,homes,even the cloths they wear are mostly purchased on credit. I will try to explain what is happening now as simple as I can considering the limited space available. When credit is extended to those who could not afford it, due to none regulation of these bodies then the massive financial problem emerged in the system. The borrowers couldn't keep up their payment in order to keep the credit circulating, then the system overheated. Contrary to Nigeria where almost every citizen pays up their purchases with little or no credit extention. Any suggestion that the Nigerian government should bail out the Banks and Stock market is ridiculous. The banks in Nigeria need to study what is going on in the west and figure out how to take advantage of the market and also for future market in Nigeria. The system is the method that every Nigeria economy will operate in future. At this moment the Nigerian economy is based on essentially cash base.

Hello,,

You should know that the world is now a global village.Why do you think the financial catastrophy is extending to other countries & not only experienced in its origin(the U.S?).It is due to the dependence of other economies on that of the U.S.If THE U.S and other affected economies cant eventually purchase the excess crude produced by Nigeria coupled with the present sliding crude prices,what do you think will happen to our:balance of payment, purhasing power of th Naira,foreign reserve? It is Nigeria we are talking about ,a country that is over dependent on petro Naira with no diversified economic base.I t is most sepceptible to financial crises,especially when nothing concrete is in the pipeline towards rescueing the inevitable. Thanks. Garba Yusuf