McKinsey: China’s $28 Trillion ‘Mountain of Debt’ on Course to Implode

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From David Scutt writing at Business Insider:

Will China’s rapid credit boom of recent years end in an inevitable bust?

According to asset manager Blackrock, history is not on China’s side.

Their research, citing IMF data, points to only four other credit booms of similar magnitude in China over the past 50 years. On all four occasions they ended in a banking crisis occurring within three years.

It’s not a good omen for markets, or indeed, the global economy.

Read the rest of the story at Business Insider.