This is the New World Report.

I'm John Batchett with Professor Evan Ellis of the U.S. Army War College to Panama to the

Canal.

The professor is just returned from Panama, so I look to him for fresh reporting on what

I've come to understand is the banking center not only for Central America, but for the

Americas.

We're looking at a very prosperous looking city, Panama city at the same time.

There are questions raised in North America and in Europe about banks, about what is

called the banking crisis on Wall Street.

So I paid attention to headlines out of Panama because the banks have this magic word

contagion when anybody mentions that they run screaming to the exits or they hide under

their desks.

In these last days, given that it's an ongoing mystery as to what is to be done for the regional

banks in the U.S., credit suites is now no longer in existence in Europe.

So do we have a 2008 or do we have something that's been contained?

Panama ran this headline.

Panama sees limited risk from U.S. European bank problems.

Professor, I start there because you're back with news about Panama, which the last time

you reported in, you led me to understand is stable and is looking to maintain its

strong relationship with the U.S. with the banks solved.

What other news do we have from Panama city?

Thank you, John.

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