The Wal-Bucks Come Home

But only to visit:

For years, American workers have worried about losing their jobs to low-cost workers in China. Now a new trend is emerging that could be nearly as big: Wealthy Chinese companies are coming to the U.S. looking to swallow American companies whole.

Maytag Corp., the maker of such quintessentially American products as Maytag refrigerators, Amana microwaves and Hoover vacuum cleaners, disclosed Monday night a $1.28 billion takeover bid from a group led by Haier America Trading, a unit of China’s Haier Group.

If Haier is successful in outbidding an investor group led by New York-based Ripplewood Holdings, the company that is the bedrock of Newton, Iowa, likely would see much of its production move to China.

I don’t need my degree in Econ to tell me that this is a bad sign.

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One response to “The Wal-Bucks Come Home

  1. Simple law of supply and demand. The Chinese have these crates and crates and warehouses full of green pieces of paper that they need to do something with. In the US, there are all kinds of factories, technology, and commodities which others are more than willing to part with for said greenbacks. Since the Chinese can use the real stuff, it’s a win for them. The US companies aren’t getting enough green pieces of paper any other way, so they like it too.

    The US consumer – well, he gets cheaper stuff. He just may not be able to afford to save any more.

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