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“US banks were crumbling while US companies, excluding the mortgage related ones and auto and airlines, were doing ok”
Please list some example? I only saw many many companies are cutting capex and employees. Many consumers lost their jobs and opted for lower quality stuff. Of course, the banking crisis lasted very short. From the bankruptcy of Lehman Brothers to TARP and subsequent multiple FED operations(before QE1), the time gap was too short to impact more business, e.g. the banks did not pull much business loans yet and the FED saved commercial paper market already. At the point of TARP, the banking crisis ended already. So US companies should thank the US government for saving them. Of course, many people will disagree, but that's the truth.
"USD is a reserve currency. " But borrowing in EURO can be repaid by USD barring currency swap and/or buying EURO using the USD? And why borrowing in USD could not be repaid in RUB? You mean there is no market to buy USD using RUB? I thought just how much RUB per USD, not can or can not?
"Bankruptcy can lead to liquidation. The operations does not continue. It is evident whenever there is crisis." That's unorderly bankruptcy organization. Of course, it could be that the business is making loss, then there is no point to continue. Even liquidating assets does not mean the business is gone. The asset could just go to another owner to continue the same business. e.g. a shipping company bankrupted and liquidated. The ships go to another owner and continue a shipping business.
Please list some example? I only saw many many companies are cutting capex and employees. Many consumers lost their jobs and opted for lower quality stuff. Of course, the banking crisis lasted very short. From the bankruptcy of Lehman Brothers to TARP and subsequent multiple FED operations(before QE1), the time gap was too short to impact more business, e.g. the banks did not pull much business loans yet and the FED saved commercial paper market already. At the point of TARP, the banking crisis ended already. So US companies should thank the US government for saving them. Of course, many people will disagree, but that's the truth.
"USD is a reserve currency. " But borrowing in EURO can be repaid by USD barring currency swap and/or buying EURO using the USD? And why borrowing in USD could not be repaid in RUB? You mean there is no market to buy USD using RUB? I thought just how much RUB per USD, not can or can not?
"Bankruptcy can lead to liquidation. The operations does not continue. It is evident whenever there is crisis." That's unorderly bankruptcy organization. Of course, it could be that the business is making loss, then there is no point to continue. Even liquidating assets does not mean the business is gone. The asset could just go to another owner to continue the same business. e.g. a shipping company bankrupted and liquidated. The ships go to another owner and continue a shipping business.