Tuesday, August 11, 2009

Flaherty to be hit by 2x4 (made in china)

I cannot even fathom the news out of China today.  It seems that FinMin Flaherty has decided to sell Canada to the Chinese in exchange for having a ScotiaBank branch across the street from Mao's tomb.

I have spent a great deal of time in China, I have done business in China and I have been screwed by Official China more times than I know what to do with.

If Flaherty imagines that Canadian banks are going to be welcome to operate as equals in China, I like some of what he is smoking.  The truth is that in a manged economy where ALL spending flows from a central point, being a prestigious Canadian bank, no matter how well run, will be a pimple on an elephants ass in China.  If your goal in life is to cash travelller's checks and operate an ATM, then China is for you.  If you want to get into the auto and home financing business in China -- good luck.

Canadians need to learn a whole lot more about the world outside of North America if they want to compete.

No comments: