An attempt to understand the world of current events, finance and the economy on a level that allows me to teach it. I'm a journalist. Oh and the occasional post about family, life and kids!
Why didn’t I think of this?! I could have bought like 50 boxes and made some good money!!
There’s an interesting thing here though, on a serious note…This is simple supply and demand. The law of supply and demand states that the price of a good in a competitive market will settle at “equilibrium” based on the available demand for that product.
Before Hostess made the announcement they were going out of business they sold Twinkies for a couple bucks a box. Now that supply has completely stopped, the equilibrium price of said good has skyrocketed.
Guess we should have made a Twinkie investment!
At either rate, the assets will get scooped up by Sara Lee or someone else and they’ll be back in equilibrium of a couple bucks a box pretty soon :)