Solyndra Round-Up: Adventures in Venture Socialism
**Written by Doug Powers
Learning that Solyndra investors were placed ahead of taxpayers when it comes to who gets paid back in the event of a loan default wasn’t a big surprise. After all, the auto bailouts were also structured in a way so that the unions were taken care of first with taxpayers stuck playing second fiddle (if any fiddle at all), but that doesn’t make the news from the latest example of “venture socialism” gone awry any less maddening.
From the Associated Press by way of Forbes:
WASHINGTON (AP) — The Obama administration restructured a half-billion dollar federal loan to a troubled solar energy company in such a way that private investors — including a fundraiser for President Barack Obama — moved ahead of taxpayers for repayment in case of a default, government records show.
Administration officials defended the loan restructuring, saying that without an infusion of cash earlier this year, solar panel maker Solyndra Inc. would likely have faced immediate bankruptcy, putting more than 1,000 people out of work.
Even with the federal help, Solyndra filed for Chapter 11 bankruptcy protection earlier this month and laid off its 1,100 employees.
As it turns out, the same year Solyndra’s $535 million loan was approved, they quickly went back to the well for an amount that would have made the total of the two loans a cool billion:
Failed solar panel maker Solyndra’s Securities and Exchange Commission filings show that seven months after the Obama administration’s Department of Energy approved a $535 million federal loan guarantee, Solyndra applied for a second one valued at $469 million.
[...]
It’s unclear if the now-bankrupt and scandal-embroiled green energy company actually received a second loan. Department of Energy officials did not immediately respond to The Daily Caller’s request for comment, and the company’s SEC filing left the question open.
A story in the Wall Street Journal quotes an investor as saying the goal of the loan(s) was to provide Solyndra credibility so they could go public and “cash out.” That way, when the loan came due, taxpayers would be on the hook instead of the private investors.
The Solyndra loan falls under the umbrella of the “stimulus,” but these days Sheriff Joe Biden seems to have misplaced his badge.
More on Solyndra here, here, here and here.
Other related stories:
Chicago Tribune: Solyndra scandal reeks of the Chicago way
Gainesville Sun: Bankrupt company made UF Museum’s solar array
LA Times: Second Obama fundraiser linked to Solyndra
**Written by Doug Powers
Twitter @ThePowersThatBe
See what others have said
Note from Michelle: This section is for comments from michellemalkin.com's community of registered readers. Please don't assume that I agree with or endorse any particular comment just because I let it stand. A reminder: Anyone who fails to comply with my terms of use may lose his or her posting privilege.
Comments
You must be logged in to post a comment.
Obama’s latest campaign angle: I’ve been saving America from wild Republican debts
May 24, 2012 04:33 PM by Doug Powers
55 CommentsStammertime: Jay Carney asked if Chicago protests have soured Obama’s support for OWS
May 23, 2012 07:44 PM by Doug Powers
54 CommentsBiden: Tea Party stopped us from growing the economy
May 23, 2012 01:55 PM by Doug Powers
44 CommentsJaczko the Jerk: Harry Reid’s sexist crony gets the boot
May 23, 2012 05:15 AM by Michelle Malkin
31 CommentsCatholic lawsuit against Obamacare mandate cites 1993 legislation written by Ted Kennedy and Chuck Schumer
May 22, 2012 04:35 PM by Doug Powers
48 CommentsBiden: Hey, I don’t blame people for voting for a convicted felon instead of my boss
May 18, 2012 01:21 PM by Doug Powers
73 CommentsSenate narrowly votes down Obama budget
May 16, 2012 06:09 PM by Doug Powers
47 Comments
Categories: Barack Obama,Corruption,fiscal stimulus,global warming



JustOneMinute
» Patterico And The Brett Kimberlin Gang
Babalu Blog
» U.S. Manned Space Flight in The 21st Century
Villainous Company
» Must Read Post of the Day. Possibly, the Year














go public, and cash out, you mean like gm stock? we are taking a bath on that stock.
I want to know, WHY is taxpayers money going to anything like this? If these start up businesses can’t get funds to make their products, they don’t need to be in business! Someone, someplace has gobs of money socked away that the taxpayers funded this krap. We have to borrow the money so bho can ‘GIVE’ it to those HE chooses needs it? It is NOT bho’s place to be doing this, it is the congress! I hope they hang(not a pc word) the whole blooming crooked bunch! I, along with millions of others are sick to death of this!
L
*It is just imperative we get a government in place that doesn’t monkey with the market in any way, shape, or form, whether it be P-BO and his various cozy bundlers, or FLOTUS changing restaurant menus based on Obamacare waivers; It all must stop, and the GOP better get on the right side of this issue going forward!
I got my arse handed to me on a Government Motors platter.
The US is no different than the old Soviet Union.
Ne need to vote every last one of these SOB’s out of office.
You know between Solyndragate, GPSgate, FastFuriousgate, this Obama guy is out classing Nixon (but Nixon wasn’t a crook).
I’ve been thinking about the Solyndra. It had a business model of spending over 6 dollars a watt and selling it at 3 dollars hence operating at a 50 % loss. It was a doomed to begin with.
Our Government spends 10 dollars and takes in 5.80 for a 42% loss. If we don’t do SOMETHING are we not doomed, just like Solybdra?
Doug, sorry to be O/T, but can we have an open thread to talk about the horrible plane crash in NV and other things happening? Thanks.
L
The taxpayers are always second fiddle in a one-man band.
Hmmmm….Solyndra reeks of corruption, and it’s getting attention in the MSM. Fast and Furious has cost people their lives, literally, but gets no legs with most of the MSM.
Liberal bloggers are going nuts trying to make lite of both, as if they are no big deal, so we shouldn’t pay attention.
These are just the tip of the iceberg for this incompetent, corrupt administration and the lid will come off long before Nov. 2012.
The Constitution is still one of our two great Founding Documents. It may be trampled on at times that try us, but it’s still there, regardless of who’s in office. Happy birthday to it.
Department of Labor “We blame China for Solyndra”
http://www.nytimes.com/2011/09/18/us/asking-why-employees-of-solar-firm-lost-jobs.html?_r=1&partner=rss&emc=rss
Obummer makes Nixon look small time in comparison. Remember it was the cover up that did Nixon in. There is alway hope the cover ups could spell the downfall of The One.
They stuck us with the broken strings.
Cue The Devil Went Down to Georgia.
This has somehow got to be Bush’s fault..
I never thought I’d ever see an administration slimyer than the Clinton’s. I hope to live long enough to see these creatures frog marched to the big house in chains. The heart weeps at the scope of the corruption while the MSM sleeps.
Just what is the big difference between the Solyndra FUBAR ‘investment’ (done at the behest of Obama Greens which screwed taxpayers) and the Government Motors debacle (done at the behest of UAWcrats which screwed taxpayers, dealers and bond holders).
Seems Solyndra just big enough to get one’s hands around, while Gubermint Motors is ahh,,, ummm,,, too big?
I hadn’t heard that one. Sweet. Came from Jim DeMint. Should have known.
The China Solyndrom … movie opens now.
The first presidential candidate that promises no taxpayer money for “fantasy fuels” has my vote. Bowing at the altar of the pagan religion of environmentalism has got to stop. Unfortunately, nearly everyone in DC has either bought in to the environmentalist lie, or is intimidated into going along. The true scandal isn’t the failure of Solyndra, it is the fact that they and other worthless “green” enterprises get any of our money in the first place for something that has no real value. If fantasy fuels were viable, there would be people investing their own money to develop them.
Some people will get thrown under Obumer’s bus but no one will got to jail while we are still alive.
‘…and the hits just keep on comin’!..”
My question is…. Why isn’t someone shutting off the money spigot? Is the HoR supposed to be controlling the purse strings?
The Mostly Socialist Media™ is out increasing the profit margins for companies producing kneepads and chin wipes.
Personally, I think obama will get thrown under his own bus.
They’re letting all this scandal come out now in the MSM, even. I think he’ll have a choice of not running for a 2nd term, or of being ousted, either way so they can run another candidate.
Obama we would probably beat. But, say Hillary? Maybe not so much.
The House controls the purse strings.What is going on? Jail time for some people, does not make any difference to me if it is a D or a R. This stuff appears to me as ot and out stealing
#14 On September 17th, 2011 at 6:14 pm, Rogue Cheddar said:
Where the heck did that serious, introspective commentary on the the pathetic condition of the current American society come from? Are you being held hostage by a fringe group of anti-humor Ron Paul supporters?
If this is not a clear violation of Federal Law, I will eat my car.
***
HI STEVE_H–#18. Well said!
***
These skittles and unicorn farts aren’t working too well in my car either!
***
I don’t think that President Palin is going to sign on to the “greenie” agendas. The ‘Cuda seems to actually know something about energy sources that Comrade Obama and His Ilk haven’t figured out yet. Maybe they should step out of their cocoons and see what is being pumped into the tanks of Air Force One, Marine One, and the 18 ton armored car they ride in. It didn’t come from a solar panel or windmill.
***
John Bibb
***
Most corrupt administration ever…..makes the Watergate coverup and Tea Pot Dome look like child’s play.
The founders tried to prevent this, but we wouldn’t uphold the Constitution, so we lost it.
The corruption running rampant in this administration has been allowed to flourish because the Attorney General, who should have been investigating these scandals is failing in his duty….surprise, surprise.
Even the FBI cannot get past him to the Federal Courts, if his office chooses to refuse to accept the Bureau’s cases, no matter how air tight. It’s going to have to either be up to the Congress to do the dirty work to bring them to justice, or the job will have to wait for a new President and AG.
rocketman #26-
Very well said.
I think she’s getting in.
She has waited long enough to watch the RINO’s begin to eat their own.
Very clever woman!!
Palin/Cain 2012!!