Morgan Stanley: 100% chance of a major economic slowdown in China

"China, to try and sustain its growth rate in the post-financial-crisis era, has engaged in the largest credit binge of any emerging market in history," says Ruchir Sharma, head of emerging markets and global macro at Morgan Stanley Investment Management. According to Sharma “Whenever a country increases its debt to GDP sharply over five years, in the next five years there's a 70% chance of a financial crisis and 100% chance of a major economic slowdown.” Sharma said the slow growth he forecast would be around 4% or 5% over the next five years, about half the rate of what it used to be. (Source: CNBC) (VIEW LINK)