By buying government securities, the central bank injects cash into the banking system.

I'm stating the obvious, but I'll say it anyway a paranoid regime which exerts the majority of its energies on rabble rousing against an external threat(s) is trying to conceal its own inadequacies.

Such developments would cause US debt yields to spike, disrupting growth. The dollar would become weaker, leaving investors wrong footed.

This suggests, first, that governments should avoid public comments describing the American presence as an occupation or as lacking legitimacy, lest they make it more likely that the US departs Iraq entirely and leaves the country and its people to a terrible fate.

If market driven recapitalization is too slow, and closing failing institutions is impossible, a more extreme alternative is to inject public capital directly into the banks (rather than indirectly, as now, by propping up the value of the sovereign debt that they hold). This approach prevents bank runs, because banks with more capital are safer.