When I look at the jump in defaults this year, all I can think about are all of the home loans people stopped paying in the lead up to the mortgage crisis and how they were systematized into the rest of the economy by securitization. If China's system was built around those so-called "implicit guarantees for debt," isn't it due for a similar or more severe correction?

It seems like the same story--different sector and different culture, same greed and assumptions.