Global Financial Meltdown and the Nigerian Financial Sector

Abstract

After recession comes depression. The depression in the US affected most of the industrialized nations of the world. It was a cumulative effect of the 1^st World War. Sixty five years after the depression comes recession in America that has equally engulfed the world economy. The Global Financial Meltdown caused by sub-prime lending and inadequacies in US financial market operation caused recession in most of the big economies and emerging markets. Nigeria is not exemption, through the situation in Nigeria could have been worse if not banking consolidation of 2005. Social funds are used to bail out the mistakes of capitalism and to check the recession from getting to depression. However, capitalism remains supreme; all what is required is to fine tune and reform the system as much as the system demands.