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.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.
"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."
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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