Markets like to present themselves as temples of logic, places where capital flows in response to earnings, interest rates and carefully discounted futures. Yet every so often, the illusion slips and the market reveals something closer to temperament than calculus. This week has been one of those moments.
Consider iRobot, the Massachusetts company that once made the Roomba a minor miracle of domestic life. According to filings and company statements reported by Barron’s and Investing.com, iRobot entered Chapter 11 bankruptcy after years of mounting pressure from low-cost competitors and higher import costs. The restructuring plan includes a sale to its longtime manufacturing partner, a deal that will take the company private and wipe out…