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Could a failure to raise the US borrowing limit lead to panic in the financial markets on the scale of what was seen when Lehman Brothers collapsed in 2008? Olivier Blanchard, chief economist at the International Monetary Fund, said: "In terms of the potential effect on financial markets, it is not inconceivable that it could have that kind of dimension."
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He said the product was coveted by steel mills in Japan andSouth Korea as it would help reduce their raw materials costsand help them compete more effectively against Chinese andIndian steel mills. Lawson said Chinese operators were alsolooking for coal assets.