Friday, September 02, 2011

“Loans” to Friends - Another Ploy of Gangster Government

Solyndra Investigation: Probe Into White House Role in Massive Energy Loan - ABC News

This "company of the future" was destined for bankruptcy. It may have looked like good politics, but it isn't/wasn't good economics.
While Energy Department officials steadfastly vouched for Solyndra -- even after an earlier round of layoffs raised eyebrows -- other federal agencies and industry analysts for months questioned the viability of the company. Peter Lynch, a longtime solar industry analyst, told ABC News the company's fate should have been obvious from the start.

"Here's the bottom line," Lynch said. "It costs them $6 to make a unit. They're selling it for $3. In order to be competitive today, they have to sell it for between $1.5 and $2. That is not a viable business plan."
As someone who has purchased solar panels, I can tell you that it is all about dollars per watt or per kilowatt, depending on the size of the installation.

Being 50 to 100 percent over the going rate is not going to get you a big order book.

This money was never going to be paid back. It was a pay-off to someone for something, to make our "green-jobs-President" look good - for 15 minutes.

Change you can believe in? This is more like the Chicago way.

A smoking gun? Aside from the fact that the White House short-circuited the official process to rush through the loan?
The loan guarantee, the administration's first for a clean energy project, benefited a company whose prime financial backers include Oklahoma oil billionaire George Kaiser, a "bundler" of campaign donations. Kaiser raised at least $50,000 for the president's 2008 election effort.
No, there was no political calculus involved in this decision. Just ignore the fact that it looks like a favor repaid. Who do you think these guys are? Chicago politicians?

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