The risk of what Nobel laureate Paul Krugman calls "Japanification" -- a semipermanent economic funk -- has haunted China for at least a couple of years now. Last week a Bank of America Merrill Lynch report again asked, "Will China Repeat Japan’s Experience?" Let's dispense with the suspense: Yes, China very likely will. And the outcome will have far more serious global implications than Krugman's main worry, which focuses on the chances of stagnation in Europe. China's "severely under-capitalized financial system," "imbalanced growth" and chronic "overcapacity" all remind Merrill Lynch analysts Naoki Kamiyama and ... (full story)