On the debt issue, one of THE major issues with debt (as any banker here can tell you I'm sure...) is that when there's too much of it floating around, everyone gets scared and starts doing margin calls and doesn't want to engage in new activity until things "settle down," which is rational, but if everyone does it, economic activity grinds to a halt. Yongcheng's default doesn't mean the economy or financial system is about to "collapse, but it does mean that uncertainty costs around massive and systemically growing debt are starting to have a bigger impact.