Wall Street Crunch Continues...

If you follow world financial news, you have probably already learnt of the latest news on the effects of the Wall St. credit crunch. Well, if you haven't, then read here about Bank of America's acquisition of Marill Lynch in an all-sock deal worth USD50bn, as well as Lehman Bros. declaring Chapter 11 bankruptcy protection, after the bank failed to secure a buyer last week, thus sending shares in the US, European and Asian markets tumbling.

Following the acquition of Merill Lynch, S&P has downgraded Bank of America's credit rating, while the collapse of Lehman Bros. has sent shocks in the financial world, since the Investment Bank was 150 years old - the fourth largest in the US. This begs questions about what would happen to the smaller banks, with lesser years of experience. Only 2 months ago we witnessed Freddie Mac Fannie Mae having to rely on the Government to bail tem out.

Back in July we had a discussion on this forum titled "HOW DID THE AFRICAN FINANCIAL SYSTEMS AVOID THE WALL STREET CRUNCH?". There were various views on weather African countries had truly escaped the effects, or was the worst yet to come. Following the proceedings on Wall Street during in the last 2 months, has your view changed in any way? What are the lessons to be learnt by African countries, and Tanzania in particular? Some economists in the US believe the credit crisis is almost over; and only few ripple effects will be felt, but the worst is behind us. What's your view on this?