Solyndra Filing a Disaster for Obama

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    Sep 01, 2011 4:46 PM GMT
    What's notable is the source of this article.

    http://www.nbcbayarea.com/news/local/Solyndra-Filing-a-Disaster-for-Obama-128816968.html

    President Obama faces political catastrophe in the form of Solyndra -- a San Francisco Bay area solar company that he touted as a gleaming example of green technology. It has announced it will declare Chapter 11 bankruptcy. More than 1,100 people will lose their jobs.

    During a visit to the Fremont facility in spring of 2010, the President said the factory "is just a testament to American ingenuity and dynamism and the fact that we continue to have the best universities in the world, the best technology in the world, and most importantly the best workers in the world. "

    It's not his statements the administration will regret; it's the loan guarantees. The President was celebrating $535 million in federal promises from the Department of Energy to the solar startup. The administration didn't do its due diligence, says the Government Accountability Office. "There's a consequence if you don't follow a rigorous process that's transparent," Franklin Rusco of GAO told the website iWatch News.

    The President touted the federally back money as a way to create jobs. The President's opponents immediately jumped on the deal as Solyndra made its first layoffs.

    Republican Congressman Cliff Stearns of Florida warned, "I am concerned that the DOE is providing loans and loan guarantees to firms that aren't capable of competing in the global market, even with government subsidies."

    Another critic, Fred Upton of Michigan: "The unfortunate reality is that loan guarantee highlights many of the systemic flaws associated with the stimulus in the mad dash to spend hundreds of billions of dollars."
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    Sep 08, 2011 8:02 PM GMT
    FBI raids solar firm Solyndra

    http://www.oregonlive.com/business/index.ssf/2011/09/fbi_raids_solar_firm_solyndra.html

    FBI agents executed search warrants on Thursday at the headquarters of California solar firm Solyndra, which received a $535 million loan from the federal government before filing for bankruptcy last week.
    Agents executed multiple search warrants at the company's headquarters in Fremont as part of an investigation with the Department of Energy's Office of Inspector General, according to FBI spokesman Peter Lee. Lee said he could not provide details about the investigation.

    Solyndrais a solar-panel manufacturer once touted by President Barack Obama as a beneficiary of his administration's economic policies. It announced last week that it was laying off 1,100 workers and filing for bankruptcy.

    The company was held up as the model for government investment in green technology. In addition to the $535 million loan guarantee, it received visits from the president and other state and federal officials.

    It filed bankruptcy amid hard times in the nation's solar industry. The price for solar panels has tanked, in part because of heavy competition from Chinese companies, dropping by about 42 percent this year.

    In a blog posting, Energy Department spokesman Dan Leistikow said Solyndra was a once promising company that had increased sales revenue by 2,000 percent in the past three years. The $535 million loan guarantee was sought by both the Bush and Obama administrations, he said, and private investors also put more than $1 billion into Solyndra.

    Republicans have been looking into the Solyndra loan for months. The House Energy and Commerce Committee subpoenaed documents relating to the loan from the White House Office of Management and Budget.
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    Sep 08, 2011 8:14 PM GMT
    Wow what a sad waste of money.
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    Sep 11, 2011 6:12 PM GMT
    A promotional video from the White House touting the government investment in Solyndra - crony capitalism at its finest:



    More here:
    http://reason.com/archives/2011/09/09/obamas-crony-capitalism

    Viewed in isolation, the Solyndra story is mildly troubling. But it is nothing Washington has not seen before. The late, great columnist Molly Ivins wrote some crackerjack pieces about the return on investment that corporate sharpies used to get from their campaign donations to Republican politicians. The Solyndra story sounds like the same old, same old.

    Except it isn’t. The Solyndra story encapsulates a much bigger issue than mere crony capitalism, bad as that is. Because Solyndra is not alone. The Obama administration has sunk billions into loan guarantees for dozens of other renewable-energy companies as well.

    This is known as the political allocation of economic resources, and it entails all kinds of problems. The first and most basic: It’s wrong. Government should not be picking winners and losers in the marketplace.

    Problem No. 2: corruption.