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It's Not About The Twinkie Anymore


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As I was bemoaning, in another thread, about my bread being discontinued because of the Hostess shut down I got to thinking about the real impact on other peoples lives. Not counting the white collar office worker. But all of the delivery people and restaurant type of businesses who bought their bread for sandwiches to sell, and the companies who were subsidiaries of Hostess. Son and I happened to drive by a Hostess outlet store last night and all of the racks were empty. So now that shop and employees are gone.

 

I looked up some of their info and found;

 

Subsidiaries

IBC Services, LLC

Interstate Brands Corporation

IBC Sales Corporation

Mrs. Cubbison's Foods, Inc.

IBC Trucking, LLC

Baker's Inn Quality Baked Goods, LLC

Armour and Main Redevelopment Corporation

 

Brands

Ding Dongs

Hostess Cakes

Twinkies

Dolly Madison Cakes

Drake's Cakes

Wonder Bread

Nature's Pride

Home Pride

Beefsteak Breads

Merita Breads

Butternut Breads

Cotton's Holsum Breads

J.J. Nissen Breads

Sweetheart Breads

Millbrook Breads

 

Stats

33 Bakeries

565 Distribution Centers

5,500 Delivery Routes

570 Outlet Stores

18,500 People Without Jobs

 

 

That doesn't include the different types of snacks like Snoballs, Ho Ho's, Fruit Pies etc. that I can think of off the top of my head. Plus insurance benefits, retirement plans and who is going to pay all of those people their unemployment? Government, you, me? I really don't know why I'm taking the time to do this. I guess seeing the closed store and my bread being gone brought on a sad. Too big to fail? :shrug:

 

 

I've been typing here for so long I don't even remember which forum I'm in. Mods move if need be. I'm just hoping it doesn't vanish or I hit the wrong button (delete) before I can hit the post button. No way am I going to chance proof reading this mess. :0327:

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You are right, Jeepers! This was a very large company and the closure will have a serious impact. Throughout the careers of the employees, Hostess would have been paying into unemployment insurance for the employees. I'm sure that the government also pays a portion of the UI benefits, too. I just wonder if there is a way for the employees to sue to get back the retirement money that the company stole from them. Some of those employees might be close to retirement age and the money could help them to retire or set themselves up better by paying off mortgages or other bills.

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It is really sad. I haven't seen one of the hostess merchandisers that I know from work since it happened. Worked for the company 22 years, and now he is out of a job. He mowed grass on the side and is going to do that full time now.

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I don't even think it's even just this company -- I think it's *all* a house of cards waiting to tumble :(

 

I've been thinking a lot about this, and other companies. It used to be (from my perspective, at least) that if you worked hard, you could hold on to the same job for your whole life, retire -- stability. I don't think we as a society have that anymore. Thinking about different areas, different professions, different companies -- what is stable anymore? Anything can come tumbling down at any moment, and who's left there to deal with the aftermath, the average unsuspecting Joe and Jane.

 

I don't trust the unions, I don't trust the corportate leaders, and I most definitely don't trust the government -- corruption all around.

 

Perhaps a bit on the emotional side but I can't help but thinking, the people who usually get the short end of things are those who give their all, they are the heart and soul of our country -- the average man and woman who are leading decent lives, working, providing, contributing through their taxes for gov't programs and such -- they're the ones left with *nothing*. When the union leaders move on to new things, the corporate bosses jet off somewhere, and the gov't big wigs make their hollow promises and do their (imo) pointless inquiries and mug for the cameras, Joe and Jane will be there trying to pick up the pieces -- and after dedicating their prime working years to the company, what's left ... seriously, what are those people going to do? My ste-father works for another big company -- he's set to retire in a few months -- what would he do if "poof" nothing ... he's too old to start over. It's just not right, but then ... these days, what is anymore :(

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http://www.cnbc.com/id/49898014

 

 

 

The global economy is likely to be stuck in the “twilight zone” of sluggish growth in 2013, Morgan Stanley has warned, but if policymakers fail to act, it could get a lot worse.

 

 

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Picturegarden | The Image Bank | Getty Images

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent.

 

“More than ever, the economic outlook hinges upon the actions taken or not taken by governments and central banks,” Morgan Stanley said in a report.

 

 

Under the bank’s more gloomy scenario, the U.S. would go over the “fiscal cliff” leading to a contraction in U.S. GDP for the first three quarters of 2013. In Europe, the bank’s pessimistic scenario assumes a failure of the European Central Bank (ECB) in cutting rates and a delay of its bond-buying program.

 

 

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But the bank says investors should also be nimble, in case policy action is “convincing and decisive,” leading to a big uptick in growth.

 

 

“Importantly, investors should keep an open mind and be prepared to switch between the scenarios as policy developments unfold.”

The bank’s most optimistic scenario forecasts GDP growth of 4 percent in 2012 compared to around 3.1 percent this year.

 

 

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Morgan Stanley isn’t alone in warning about a recession next year. Noted bear, Nouriel Roubini warned on Monday that certain key developments would exacerbate the downside risks to global growth in 2013.

 

 

“Until now, the recessionary fiscal drag has been concentrated in the euro zone periphery and the U.K.. But now it is permeating the euro zone’s core,” Roubini wrote. “And in the U.S., even if President Barack Obama and the Republicans in Congress agree on a budget plan that avoids the looming “fiscal cliff,” spending cuts and tax increases will invariably lead to some drag on growth in 2013 – at least 1 percent of GDP.”

 

 

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Roubini said the rally in global markets that begun in July was now running out of steam as global growth slows and valuations look stretched.

 

 

“Price/earnings ratios are now high, while growth in earnings per share is slackening, and will be subject to further negative surprises as growth and inflation remain low. With uncertainty, volatility, and tail risks on the rise again, the correction could accelerate quickly.”

 

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And yet the co xo's wanted a bonus for their executives to sell off everything. A bonus? Really?!

 

These bonuses are to stay there until they get the stuff sold, mothballed or whatever. This is common when closing down a company. Have to remember. These people are NOT getting paid and they want them to stay around until the end.

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