Thursday, November 29, 2012

When The Bailout Kings Are Not Around...

By, Chris Rossini
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...the market takes care of business.

This is what should have happened in the auto and financial industries.

From the NY Times:
A little over a week after Hostess Brands formally announced its plans to wind itself down, the bankrupt maker of Twinkies and Devil Dogs is dealing with more interest from potential buyers than it can handle.

Advisers to Hostess are in active talks with about 110 suitors, including regional bakeries and national supermarket chains, an investment banker for the company said in Federal Bankruptcy Court for the Southern District of New York on Thursday. In perhaps a more reassuring sign, many of these suitors appear ready to spend big amounts of money.
People voluntarily risking their money to pick up the pieces, because they see an opportunity...And paying a mutually agreed upon market price.

Fortunately stories like this still exist in Bailout Nation USA.


  1. Chris couldn't be more right. If people want Twinkies, the market will sort it out. No need to bail ANYONE out.

    In the Soviet Union, much like today's America, Hostess would be saved and there would be no more Twinkies.

  2. To me, it's more interesting to realize what the value-add is for companies ponying up large sums of money: Chucking the union.

    Hostess Twinkies are a profitable idea if you can remove the anchor holding it down.

  3. In Soviet Russia, Twinkie eat you!

    Maybe whoever buys those brands will even start making them out of actual food.