I would suppose that the danger of such a "Dragon Country" scenario emerging could be determined by the "haircut" being required for repo operations. I would expect the collateral damage to be in stocks and commodities that had soared on credit generated in such a manner. If they can make a buck I certainly doubt that JP Morgan would show much restraint, backed up as they are by the full faith and credit of the US taxpayer.

"It is not necessary to have hope in order to persevere."