Hostess Brands bankruptcy lesson in damage done by focus on short-term returns

The November 29th decision to give the Hostess executives who oversaw the company's collapse a $1.8 million bonus illustrates why a company that had sales of $2.5 billion (US) last year is now being shut down.

While Hostess management are trying to blame the union for the company's collapse, it's becoming clear that mismanagement by investment funds was to blame.

Finance Minister's update shows weakness of federal reliance on resource exports

The larger than expected federal deficit due to declining natural resource prices shows the problem with the federal government reliance on the resource sector to provide economic growth.

According to the federal Finance Minister's November 13, 2012 Update of Economic and Fiscal Projections, falling resources prices are the main reason government revenues will be lower than expected. The drop in revenues is expected to add $5.8 billion to the deficit for the current fiscal year.


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