No Credit for Green Energy, but There Is Always Money for Twinkies
We have noted earlier that alternative energy projects are stalled because of the credit crunch; It is hard to find money for any project these days. But it appears that the private sector still has money to invest; they just put close to $600 million into the maker of Twinkies, Hostess cupcakes and Ding Dongs.
Hostess cupcake painting by Brandi Ballard
The New York Times says that Interstate Bakeries went bust because of "the low-carb Atkins and South Beach Diets."- others just blame low sales and high costs. And they do employ 22,000 people in 41 factories, so it is great that they were saved.
The Times also notes that:
Created in 1930, with a banana cream filling, rather than the vanilla of today, Twinkies — love 'em or hate 'em — are about as emblematic as junk food gets. With 39 ingredients, 150 shamelessly empty calories and, officially, a shelf life of about three weeks, the Twinkie is a cream-filled symbol of American culture. Their mysterious longevity even earned them a joke in "Wall-E," Pixar's postapocalyptic robot love story.
Investors are led by Ripplewood Holdings , which likes old-time Americana, also owning Readers Digest. A gaggle of hedge funds and General Electric are in there as well. Good on them for saving all those jobs, but why is it that there are millions of private bucks for Twinkies and none for turbines?