When the crisis hit the world financial system, XYZ felt the shock inevitably. In any case, XYZ's government couldn't afford to bail out its bank that had gotten so much bigger than its economy. The only choice was to let them go under. In other words, XYZ's banks were too-big-not-to-fail. That was a lot easier, though, when letting the banks fail meant letting foreigners lose their money. XYZ's government, you see, guaranteed its own people's deposits, but no one else's.

But now it was XYZ's government that needed a bailout. It needed the money to protect domestic deposits, cushion the economy's free fall, and keep their currency, the alibi, from crashing much more. In all, XYZ got $12.1 billion, with $6.5 billion of that coming from the IMF and the other $4.6 billion from its neighbors.

Using the above paragraphs, fully explain what happened to this country when the world financial crisis happened? Why did this country need a bailout? Why did the banks need a bailout? Compare this situation with the situation in the USA (do you see any similarities? or differences? how? why?)