Hostess bankruptcy: Blame Bernanke and then the unions.
Today Americans woke up to the news that Hostess, the manufacturer of products like Twinkies, Wonder Bread and other "food" items is shuttering. The explanation provided is that their unionized strikers crippled production to such a point that it triggered an automatic contract clause. To be sure, Hostess was already on the ropes and under private equity management due to filing for bankruptcy in January of this year (their second bankruptcy in a decade), but the death knell most certainly came earlier than expected. The closing of Hostess is actually quite tragic, because the job losses are in the many of thousands : The closing will result in Hostess' nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000 Hostess employees. "We deeply regret the necessity of t...