i think china has decided it is in their best interest to bail everyone out one after the other to maintain the status quo as long as possible. i mean think about it- in the current status quo- china is basically the world's saver and while they are putting the vast majority of their reserves into a worthless low-dividend yielding investment (ie the rest of the world's debt) they are still putting some into buying up resources around the world and receiving that tiny dividend that gets further reinvested. (ie south american oil, african farmland...) the longer they can maintain this status quo, the more that portion of their investment in hard goods can continue to grow. in the future, when they finally allow the rest of the world's debt to crash they will have amassed an immense proportion of the world's physical assets (ie natural resources), much more than they currently control. i don't think it'll be in china's best interest to allow debts to fail for several more years, maybe even as much as a decade or two, but i can't see it going that much longer than that- demographics will eventually overpower them. wow, i'm not sure why it took me so long to figure this out, it was reading spains bailout talk that it all just clicked. anyone else have thoughts about this?