More than a year ago, I wrote a column about two damaged brands. One damaged brand was the “Made in China” brand and the other was the well respected financial brand of Wall Street.  At that time China was dealing with the fact that pet food produced in China was killing pets all over the world and that toys produced in China had extremely unsafe levels of lead.  Also at that time Wall Street was beginning to deal with the meltdown of the mortgage backed securities market.

This column immediately came to mind last week.  In the same week that the $700 billion bail out was being discussed in Washington, China was basically shutting down its’ dairy business due to criminal negligence and bribery.  More than 50,000 Chinese infants have been stricken with life threatening kidney ailments due to the addition of melamine to most baby formula and milk products.  There are two things that are similar to both these crises.  First, the dairy industry in China and the mortgage backed securities market in the U.S. were woefully under regulated.  Second, those in power made firm assurances that changes would be made and that consumers and investors did not have to worry, that the worst was over.   Lack of oversight combined with outright fraud in both cases now results in two brands that will need years to resurrect themselves. They both made me think of the man standing in the alley opening up his overcoat to reveal stolen …

The past few weeks have not been good ones for products manufactured in China and financial instruments created in the United States.  The “Made in China” brand is now an un-trustworthy brand to millions of American consumers.  New, mortgage backed debt instruments, highly rated by U.S. bond rating agencies are now being questioned in financial capitols around the world.

In an earlier column entitled “Made in China” I discussed certain historical forces and timelines that are to some degree at cause for the recent rash of dangerous products being produced in China.  In a historically short period of 30 years, the country is moving from being a rural, agrarian economy to one of the largest industrial economies in the world.  In addition, in this same time period it is moving from being a secretive, xenophobic, communist state run by a central planning committee to a major player on the world economic stage that has standards of safety and openness.  This huge a transition in such a short time has never occurred, so a number of sizable bumps in the road are to be expected. 

This historical perspective notwithstanding, the Made in China brand is in serious trouble.  Most of the readers of this blog are probably either parents or pet owners.  If you are a parent, particularly of a young child, you will now look at all toy packaging and truly think twice before you buy a toy that has the words “Made in China” printed …