Despite the run on these financial institutions, in my view it would not have crashed the dollar against other major currencies if allowed to proceed- quite the opposite. The value of the dollar and dollar cash equivalents would have increased significantly against equities and hard assets.
There is no contradiction in my viewpoint , as you are asserting.
WHEN the too big to fail guys went down people with accounts at those firms would've started converting to physical cash (just the same way every bank run ends up) the derivatives market would've been a fire sale because the big guys would've needed to sell to cover and the FED would've had to print paper cash 24/7 and still not come close to meeting the demand.
But yeah I am sure that would not been but a small blip on the scope and Europe would've yawned and then everyone would go get ice cream.
We are not talking about the stock market dropping in prices. We are talking about a digital run on the banks. Contrary to popular belief even with bank accounts everyone can't sell/cashout at the same time, well OK they can but when they do its called an economic collapse and you end up with pennies on the dollar if you are lucky and a crushed currency and a world wide depression.
What is really amazing now there is even a move by Alex Jones and company to rewrite the history and claim it really didn't happen it was all just a minor glitch in accounting and that it was all manipulated to win an election.
But he that Kim K looks good in a bikini sooo
Ya know...