Friday, April 07, 2006

What's Wrong with the Chinese?

HSBC and Citigroup are jumping into the China market whole-hog, and they've signed up millions of new credit card customers. The problem is, the Chinese don't revolve balances. Seems their culture does not value going into debt. It's estimated only 2% of Chinese credit card customers revolve a balance, compared to 54% in the U.S.

The credit card companies are convinced they can train the Chinese to change their evil ways, and given the West's success at pushing American cultural norms into countries the world over, no doubt there will soon be a need for credit counselors throughout China. Actually I just might pursue that idea--it's the entrepreneurial brainstorm I've been waiting my whole life for.

Gotta go.


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