jump to navigation

Twinkies Document #1890 December 10, 2012

Posted by bobv451 in business, charity, e-books, ideas, VIPub, web & computers, writing.
Tags: , , ,

…and what it means to publishing.

Hostess Inc’s bankruptcy sent shock waves through the snack food world. Who would have ever thought Zombieland was going to be a documentary? Parts of the bankruptcy filing, though, point up something that can be of immense value to those of us in VIPub (Vertically Integrated Publishing) and in so many other fields.

Banks have pretty much stopped lending money, even to the most qualified. There are a lot of reasons for this but Dodd-Franks is part of it, requiring banks to have immense reserves against failure. With the Fed only giving, well, zero, interest, banks won’t give much in the way of interest on their deposits. Come the first of the year Tier I reserve requirements change significantly, too. This will soak up even more money that might go for loans. (The banks will buy gold).

But the Hostess bankruptcy brings out a new way of financing. Or not so new, merely gqthering steam. The buzzword for it is “private equity.” This can come from hedge funds or individual investors (think Warren Buffett) but they operate at levels swapping billions of dollars not hundreds or thousands. One of my favorite charities, if you want to call it that (and I don’t, really–I see this as what capitalism is all about) is http://www.kiva.org Muhammed Yunas won a Nobel Prize in 2006 for the idea of micro loans.

We’ve seen crowdsourcing bring in $200meg to save PBR at BuyABeerCompany.com Document #1890 is a proposal to use crowdsourcing to buy Hostess.

If you have a few bucks you can finance a painting or Twinkies or … a novel. Steve Sullivan’s recent kickstarter project financed his Death Tournament project. Matt Forbeck financed his “12 in ’12” project, writing 12 novels in 12 months, one trilogy at a time. With the Big 6, er 5, publishers pulling stunts like backing Author’s House rather than authors, we don’t have to be left out in the cold. Small amounts of money (relative to keeping Twinkies afloat or at least something more than put into time capsules) is within our grasp using the same technique. Find a project. Back it. Or get ambitious and start one of your own.

Follow me on Twitter
Check out a super sale on my store




1. babble - December 11, 2012

So sad about Twinkies and the lack of funding… Guess it’s the Cabbage patch kid of gifts this Christmas! 😦
Went to check out your sale but didn’t see anything. Is it over already?

bobv451 - December 12, 2012

It was a limited time sale. But I have a couple more (limited time) sales coming up before Christmas (and the Mayan Apocalypse )

I love the idea of a package of Twinkies as stocking stuffers!

2. D Gary Grady - December 14, 2012

Blaming banks’ slow lending on Dodd-Franks doesn’t hold up to scrutiny. It’s just propaganda from people trying to get Dodd-Franks,which is a lot weaker than the successful Depression-era regulations we foolishly did away with starting in the 1980s. Note, incidentally, that the same lending problem exists with banks in the UK, which don’t know from Dodd-Franks.

bobv451 - December 14, 2012

Took some doing to miss my point about private equity filling the gaps left by banks not loaning, didn’t it?

Kickstarter and other crowdsourcing will grow until the gummint steps in to regulate, tax and stop it.

D Gary Grady - December 14, 2012

I didn’t miss that point, Bob, I was just commenting on the one I disagreed with. Like you, I think crowdfunding and microlending are grand things. I just had nothing to add to what you said. Actually, come to think of it, I do: A semi-related of good news is that the the SEC has recently made it easier to solicit funds on a larger scale from qualified investors.

3. michael kors - March 25, 2013

Hello there! Would you mind if I share your blog with my facebook group?
There’s a lot of folks that I think would really appreciate your content. Please let me know. Thank you

bobv451 - March 26, 2013

share away!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: