Oh I'm sure China is loving this. And they hold a lot of cards in the form of US debt that they can call in whenever they want to, but that wouldn't do their economy any good.

On a different note, check this video out. Start watching at about 1:20.

It's an amazing exchange. Yellen pretty much says that they'll bail out whoever they wish, period, and that they'll only bail out large banks, letting smaller banks to die off.

Right now, this is resulting in people fleeing small, community banks and putting their money in the big banks, further centralizing control. She admits that.