Morgan Stanley: Deleveraging Going Fine But China Is A Worry

Global Deleveraging – Using dulcet tones, a Morgan Stanley report on global debt and deleveraging notes progress but warns against a rapid expansion of the interest rate tightening cycle. As a result, don’t expect much more than a “tepid recovery in private demand.” What to watch is the debt deleveraging relative to economic growth as well as debt to GDP ratios that could “pose financial stability risks.”   US households are pulling out of their balance sheet recession, but corporate debt grows With debt to GDP ratios continuing to climb – the US ratio is near 104%, up from 64.8%…