Hostess's fall is a bad for capitalism, esp. our style of capitalism. Too many blames to go around. First, the management (and the hedge fund managers) did not update their products to meet the trend of the market.
*
Unions are out-of-touch. If your patient is dying, you do
not want to shake him hard violently. You need to have plan B when you're bluffing. Betting the entire farm with bad cards is just dumb. It is just common sense.
They're parasites and they will
die too when their host is dead. The dream of owning the company will remain to be
dream and they never want to wake up.
* The workers are really dumb to let their master manipulate them until they lose out big time. Do you think you can protest and win in this kind of economy and the shaky state of the company?
*
The politicians will not bail them out especially it is long past the
election. Usually they
can blame China for stealing the jobs, but they cannot as these jobs
can't be outsourced. Hence, even if it were before the election, they will not gain any help from the government.
It is a lose-lose-lose (management-unions-workers) situation and only stupid folks will get into this situation.
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There
will be a buyer(s) and hopefully it may save 25% of the jobs and most
likely with a clause to get rid of the unions. The new factory workers will be
making 20K working for 28 hours week, so they will not be eligible for
any medical insurances and other full-time benefits. Hence, unemployment benefits and welfare are not a bad tradeoff.
It is a tough world
out there. Be realistic and check who's hiring for similar jobs that pay
$50K with benefits. Do not waste your time and energy to ask for the same compensation for your next jobs.
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Will the following be considered as insider's trading?
Say, I have prior knowledge that it is going to bankrupt. I buy the entire stocks of the goodies that can last longer, and sell them on eBay for $10,000 each (deducting $1,000 as the starting bid every day). The fortune is small, but it is better than protecting in the cold for nothing to gain.
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Its' a shame about Hostess, but the union just wouldn't make compromises. It was like circular firing squad, just crazy.
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