Bahamas affected by collapse firm

Financial analysts in the Bahamas say the island chain will feel the impact of the US financial crisis.



The global economy is at the moment trying to come to terms with the dramatic collapse of investment bank Lehman Brothers.



There is also major concern in Nassau, because the bank had direct investments in the Bahamas.



The former Central Bank governor James Smith says the tourism industry, in particular, would be hard hit.



He says since the majority of regional economies are tied directly to US disposable income, any movement in the US market that reduces consumer confidence, would mean less visitors, unemployment in the tourism sector and less foreign direct investment.