Solyndra Watch and the First Rule of Holes; Update: $1 billion in new DOE loans approved

Logo credit: Sloane
Just keeping you up to date on all the Obama boondoggles du jour…
*The Wall Street Journal reports that Solyndra violated the terms of its government loan…
Solyndra LLC had such steep financial problems in late 2010 that the company violated terms of its loan-guarantee agreement with the Department of Energy and technically defaulted on its $535 million loan, according to people familiar with the matter.
Report on SolyndraThe failed solar-panel maker, which is under numerous criminal and congressional investigations, ran so short of cash in December 2010 that it was unable to satisfy certain terms of its U.S. loan agreement, these people said. The agreement required Solyndra to provide $5 million in equity to a subsidiary building its factory but cash-flow problems prevented those payments.
WSJ’s Ryan Tracy reports a new Congressional report says warnings about Solyndra’s competitive abilities came out before the government awarded the company a $535 million loan guarantee and the company’s subsequent collapse.
The Energy Department ultimately restructured the loan agreement to help keep the company afloat and Solyndra continued to draw money from its loan.
Solyndra’s cash-flow problems in late 2010 had previously come to light but it was not known that the company technically defaulted on its loan and violated its agreement with the U.S. government.
*The Congressional Research Service report is here.
*California state officials are pushing to freeze awards from a program that gave a $25.1 million tax break to Solyndra LLC.
*Questions about the George Kaiser Family Foundation…from WaPo:
Six years ago, Senate Finance Committee investigators mounted an inquiry into an exotic variety of nonprofit organization that they feared affluent families were using to warehouse wealth while simultaneously earning themselves lucrative tax breaks.
One nonprofit group singled out for scrutiny was a low-profile organization based in Tulsa. That group, the George Kaiser Family Foundation, later became the biggest investor in Solyndra, the solar company that collapsed last month after burning through a half-billion dollars in taxpayer money.
Congressional interest in the nonprofit group was so high in 2005, in fact, that an attorney for then-committee Chairman Charles E. Grassley (R-Iowa) used it in an internal memo as a case study into whether the tax loophole should be closed. The memo, previously unreported, pointed out that in 2002 the foundation distributed just 0.2 percent of its assets to charity. That was acceptable under the law because GKFF, as it is known, was founded to financially “support” another nonprofit group, the Tulsa Community Foundation.
*Sean Higgins at IBD reports that “Department of Energy is set on Thursday to announce whether nine federal loan guarantees amounting to $6.5 billion for green energy projects will get final approval.” That’s a whopping $23 million per green job. IBD’s chart of the loan applicants:

*Eco-topia! Solyndra built itself a green Taj Mahal on the public dime:
The glass-and-metal building that Solyndra LLC began erecting alongside Interstate 880 in Fremont, California, in September 2009 was something the Silicon Valley area hadn’t seen in years: a new factory.
It wasn’t just any factory. When it was completed at an estimated cost of $733 million, including proceeds from a $535 million U.S. loan guarantee, it covered 300,000 square feet, the equivalent of five football fields. It had robots that whistled Disney tunes, spa-like showers with liquid-crystal displays of the water temperature, and glass-walled conference rooms.
“The new building is like the Taj Mahal,” John Pierce, 54, a San Jose resident who worked as a facilities manager at Solyndra, said in an interview.
Remember the first Rule of Holes? When you’re in one, STOP DIGGING!
***
Update: Down the drain…
The Energy Department announced Wednesday that is has finalized more than $1 billion in loan guarantees for two separate solar projects.
The decision comes several weeks after Solyndra, a California-based solar manufacturer, received a $535 million loan guarantee from the Obama administration in 2009 filed for bankruptcy and laid off 1,100 workers, setting off a firestorm in Washington.
DOE announced a $737 million loan guarantee to help finance construction of the Crescent Dunes Solar Energy Project, a 110-megawatt solar-power-generating facility in Nye County, Nev. The project is sponsored by Tonopah Solar, a subsidiary of California-based SolarReserve.
…The Energy Department also announced that it had finalized a separate $337 million loan guarantee to Sempra Energy for a 150-megawatt photovoltaic solar generation project in Arizona.
The project will result in 300 construction jobs, DOE said.
The Solyndra loan guarantee, unlike the two announced Wednesday, was used for a solar panel manufacturing facility.
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Two criminal enterprises (Solyndra & Oblunder, Inc.) greasing each other’s palms with our money.
Nothing new here.
All part and parcel of your typical Chicago political machine operating on the national level now. And it wouldn’t be surprising to see nothing happen to the top members of Oblunder, Inc., either.
according to bwany fwank, solyndra is not broke, they are just need more money. this is the gift that keeps on giving.
If politicians concentrated less on the separation between church and state and more on the separation between business and state, the economy would the a whole lot better off.
This is also the poster for simplifying the tax code.
This GFKK issue is why rich people keep talking about higher taxes for the wealthy. They put a lot of their money into some foundation which they control, take a tax deduction for 100% of the contribution, then give a small fraction of the money to charities that they create.
Then when they die, they give control of the foundation to their children. Nontaxable wealth accumulation.
Then they get in front of the cameras and say “I pay less taxes than my secretary, Obama needs to tax me more.” If your secretary could afford to put a million dollars into a foundation and then have the foundation send 1% to her church, she probably wouldn’t object to a tax increase either.
Tax code should be one page long, one side only. 10% tax on income from any and all sources for federal income taxes, no deductions. Can’t make it on 10% of our earnings? Just too bad. The fed needs to learn to live within our means.
Tommy (Obowmao) DeVito: Who the @#$% cares? I’ll dig the @#$%in’ hole. I don’t give a @#$%. What is it, the first hole I dug? Not the first time I dug a hole. I’ll @#$%in’ dig a hole. Where are the shovels?
I heard someone on Fox yesterday say that the taxpayers are still paying this bunch for their lawyers in this mess! For goodness sake, why is one more penny going to any company like this? The taxpayers should NOT be funding krap like this! bho, IMO, is getting lots of cash from all these companies he is giving taxpayers money to?
BTW, here is another solar company that bho and team is involved in that might be worse than solyndra? Look also at who is involved, bho’s pick for commerce department and member of the apollo alliance?
http://www.wnd.com/index.php?fa=PAGE.view&pageId=349101
L
And I think by “higher taxes” they mean taxes on income. Of course many of the wealthy don’t live primarily from income from a salary, but by earnings from capital gains and dividends which are taxed at a lower rate than income, I believe. So, sure, the fabulously wealthy can brag and bluster that their tax rate should be raised, income tax that is. It would have little effect on them.
I’d like to see Buffet demand his taxes on capital gains and dividends be raised substantially.
I thought the first rule of holes was: “Get a bigger shovel!!”
prior to the 1920′s, the government ran on 3%of gdp, so 10% is too much.
Well, I’m with you then. 3% should be more than ample for the fed.
Then 9% total split between all levels of gov: local, county, state and fed should be the max.
On September 28th, 2011 at 11:57 am, hawkeye54 said:
We could start with 10% with a requirement to reduce by .5% every year until it is 5-6% maximum. That would give federal employees who are wasting taxpayer money time to reform. But reform is essential.
I can’t wait to see what’s next for BHO.
For The Obama, the first rule of holes is:
Go on a national tour to declare the hole-digging a success, since many shovel-ready jobs were created to dig the shovel-ready hole, and the successful hole-digging could have been faster, deeper, and wider, if not for the everybody who stood in their way!
Perhaps Barry thinks that, at a certain point in digging his hole, he’s no longer digging down but up. It will burn him. It works physically, but not monetarily.
Barky proposes we suspend next year’s elections so he can focus like a laser on cleaning up these messes, borrowing and printing more money so he can get us all jobs.
That’s hilarious. As if anyone involved in the deal really expected the money to be paid back.
In DonkeyLand, the American People are nothing but a bottomless pool of money, which can be channeled to enrich themselves and their acolytes. If they don’t pay back their “loans” [wink-wink, nudge-nudge], so what? It isn’t like there’s not plenty more where that came from…
I would still love to see where all the money went. It would not surprise me to find out that Solyndra “overpaid” for it’s materials.
Its all a sham. No one involved really ever expects government loans to ever be paid back.
All to often the government is too happy to forget or forgive the loan.
The whole “too big to fail” garbage should have never happened in the first palce.
Solyndra
General Motors
Numerous Banks
GM’s Volt
Ethanol (Moonshine, really)
Cash for ____________’s
Everything this Community Organizing Law Instructure touches just turns to gold, doesn’t it? I am so, so relieved that we finally have an “intelligent” human being steering the largest economy in the world. The results have been so refreshing, wouldn’t you say?
Central Planning, Chicago Style is clearly what this nation needed.
Either that or an enema. It’s hard to tell the difference some times…
Solyndra made panels for $6.00, and sold them for $3.00. This is a living example of Catch-22, wherein Milo Minderbinder bought items (eggs, I believe)for 5 cents, and sold them for 4 cents, & everyone made a profit!
Well, for many of those near to and in Barky’s circle, I’d say so. For the rest of us, uh, not hardly.
Thanks to liberal self-esteem math. As long as everyone felt good about the outcome it all was well!
Shovel??? This administration has moved on to backhoes. The holes can’t be dug fast enough.
I doubt he’d have a problem with that. He rarely sells anything, and the last I heard Berkshire Hathaway doesn’t pay a dividend.
Many conservatives are falling into the trap. Obama and his rich buddies know the tax is less on capital gains. They want it raised. To be ‘fair.’
It isn’t the low rate on capital gains that makes it so rich people pay so little in taxes relative to their wealth. For instance, if they sell something that has a capital gain, they also sell something that has an offsetting loss.
The people who get screwed by high tax rates are the ones struggling to become rich. They tend to not have the kind of broad diversification that makes it easy to offset gains with losses, and it costs them a much higher percentage of their wealth to get top tax lawyers.
And then there is the charitable foundation scam.
Most of the truly rich have always been happy with the corrupt Big Government/Big Business alliance against the rest of us.
Wasn’t it Obama who said, “Plug the damn hole”? I believe it was during the BP oil rig crisis. My question…Was it Obama who dug THAT hole? I still haven’t made up my mind on that.
Solyndra was nothing more than an eco-front for a dem party money laundering scheme.
I think Obama inadvertently told us something back when he declared that the American people don’t care about process. Of course, with the mainstream media as their primary source of information, they don’t have much in the way of opportunity to care or not care.
BHO. Isn’t that the premium movie channel? Big on drama with very little grounding in reality. Lots of innovative accounting tricks to cheat the little guys out of what they should be earning while amassing fortunes for the guys at the top. That’s BHO, right?
Ah, yes, I know that legal ploy for washing out a potential tax event. My financial advisor usually has me doing that in reverse, sell something that has had a substantial capital loss, take the deduction, often with a carry-over for a couple of future tax years.
Now all my wife and I have to do is look into establishing our very own tax exempt foundation sustained by tax deductable donations.
Jail time now. dammit
Gads, on your up-date Michelle! When will this insanity stop? Taxpayers are throwing our money down the hole to companies that bho thinks needs to get it! I am just about the run through the house screaming like a banshee!
L
Pfft! Only a billion? For this admin, that’s just small potatoes “walkin’ around money.”
How do we stop these people?!?! They are criminals!!
Crony Socialism
It’s as if Solyndra never happened. The Obama Administration is giving $737 million to a Tonopah Solar, a subsidiary of California-based SolarReserve. PCG is an investment partner with SolarReserve. Nancy Pelosi’s brother-in-law happens to be the number two man at PCG.
http://www.thegatewaypundit.com/2011/09/more-crony-socialism-obama-gives-737-million-to-pelosis-brother-in-laws-solar-firm/
That what I say! Isn’t this STEALING from us, when we KNOW how Solyndra turned out and how corrupted the process is? Why can’t they stop this dead in its tracks until there is a complete investigation?
Remember the oil drilling moratorium? They stopped drilling in the Gulf until they could conduct safety inspections and make sure the other rigs were safe. Now, we still can’t drill even though there was a court order to lift the moratorium. However, there is no way to stop the money from going down the shi# hole of green companies until they are ruled safe investment?
I feel really helpless right now because they just forge on regardless of the consequences. They don’t care! This is very very bad! No court in the land seems to be able to stop this.
The coup, right now, is very successful.
Some members from 2005-2006 Congress are still ‘around’ today and it includes Santorum.
I’d like to know what if anything was done about it back then?
It’s great this is all getting exposed to us but we have to stop this runaway train.
DEAR nan’s brother-in-law? Wow! I wonder if that one in NV will be going to some kin of dingy?
L
Solyndra, ‘Fast and Furious, GE and all the assorted Obama-scandals need to be elevated to the level of presidential resignation quality.
This administration reminds me of those smash and grab thieves. Tearing the place up and taking everything as they run out of the store.
With someone willing to take the evidence for a case to a court or the appropriate law enforcement agency…..and an agency willing to make the arrests and a court willing to hear the case.
A report was compiled, for the record. Some stern words were bandied about, and anyone involved in hanky-panky was politely admonished to please not get caught doing this again.
And afterward, everyone went to the beach. Happy times. Happy times.
How ironic — sunshine finally disinfecting a SOLAR scandal.
I think you missed an important part of the WSJ article Michelle.
This is Chicago thug cronyism we are talking about here.
DOE restructured their debt, and someone recruited investors to dump another 75M into the hole…but the investors got the right to be paid first if bankruptcy occured.
Which left wing investors were recruited by who?
Why are these investors treated differently than GM?
Who Ok’d this lunacy allowing these crooks to continue operating costing the taxpayers even more?
I just ran a quick check of SolarReserve and found something about their board of directors:
that information is from the company’s website for the board members and participants bio’s. But here is the most damning of the board participants:
Steve Mitchell
That’s right the same Argonaut Private Equity that is owned by Kaiser (Solundra)
To be fair, these loans are not for solar panel companies. They are for solar plants that redirect sunlight via mirrors to heat up tanks which would make steam for a turbine.
And one of them will create 50 full-time jobs!
http://www.tonopahsolar.com/
*I hate the thought, but it is way past time for a special prosecutor; The GOP house should be sceaming for one now with so many different scandals to pursue that have actual lawbreaking already revealed to us; We can’t expect Fast and Furious Holder to do the right thing, so let’s get on with it and uncover everything P-BO has been monkeying with for 3 years!
50 full time jobs for how much money?
I’m tired of the government wasting money we don’t have.
The government cannot create jobs.
Period.
And Soylndra was supposed to create 1000 full time jobs; yet we all see how well that worked out.
Politically beyond stupid. The political equivalent of sticking your hand into blender.
That includes Obama who I believe was a stockholder in 2005.
I agree it’s stupid – but he’s trying to keep his base interested, and these are the people who would be happy to spend billions of your money for a solar clothes dryer.
Could someone please explain why we need a Department of Energy?
I understand why the crooks and thieves ripping off the taxpayers like having it around, but what good does it do the average American voter?
Think of the FBI agents and the accountants, and the prosecutors and their staffs, and on the other side, the interns who make up lies about whether the White House was involved, and the late-night orders to Pizza Hut for all these people, and the laundry that has to clean the Solyndra CEO’s shorts when he pooped his pants when the FBI knocked, and the computer forensics guys erasing Solyndra computers… It’s an industry unto itself – could be 1000 people.
Why do scandals that start under a Republican President and his administration get blamed on the next Democratic President? Oh yeah, because politics has become a game of gotcha. And even when the facts come out, no one bothers to correct the original report.
I don’t know if any of the Republican candidates for President have the cajones to take down all the scum from the Obama administration, who are committing endless crimes against American taxpayers that haven’t even been born.
Good point. It will take a lifetime to unravel all the webs in this deal. Then when the newest companies to receive loans goes belly up Obama can claim he saved those same FBI, Prosecutors, accounts, etc jobs.
Isn’t the last act before the fall of an empire to loot the treasury?
Fast and Furious
LightSquared
Stimulus Waste
Try again.
Your pen name is truly appropriate. Wile E. Coyote…..genius.
Sadly, agreed. We have a “justice” system almost fully in the hands of Progressives, who will find some kind of justification for everyhing these crooks do, and the vast majority in Congress are either those that approve of this behavior or too wimpy to do anything to stop it. Meanwhile the taxpayers are being robbed, our Constitution ignored, and our country destroyed. And it seems we can’t–or won’t–do a thing but watch.
Is it just me, or does Watergate pale in comparison to this corruption?
Keep a close eye on Ft. Knox.
I was thinking politically arrogant. The equivalent of raising your middle finger in the air in response to taxpayer concern and outcry.
***
Brilliant Comrade Obama is just trying to prove that dummy Albert Einstein was wrong when he said that “Insanity is doing the same experiment endlessly and expecting a different result!”
***
Too bad Albert couldn’t have been a Community “Organizer” so he could get his head on straight.
***
What’s that giant flushing sound?
***
John Bibb
***
On September 28, 2011 at 05:22 pm, Flyoverman said:
Heh! Meep! Meep! Mofo!
I still favor a national sales tax and no other taxes.
No exceptions, no different tax rates for different products.
A cap of 20%. If in any year the sales tax exceeds 18%, the following year it cannot exceed 15%. If in 2 of the past 3 years it has exceeded 18%, it cannot exceed 15% for 3 years.
The only exception to this rule I might consider is if the U.S. is in the midst of an officially declared war, and has been for the past tax year.
I just visited Merriam-Webster online.
I looked up the definition of “Organizer”. First definition said, “one who organizes”. Hm. Like Maxine Waters. Like Barack Obama.
So, I looked up the definition of organize:
So, a community organizer has spent his time arranging elements into a whole.
What is a community?
Why do “communities”, by the above definition, need “organizing” (again, by the above definition)? They are already organized, by definition. By what authority does someone who is not a member of gov’t at any level “organize” a “community”?
Where I come from, we call that “manipulating”:
Hiraghm, they call him that because it has meaning in the lexicon of Saul Alinsky and other socialist radicals. In their vernacular, “community organizer” means one who is a rabble-rouser who gets blue-collar workers to support him/her in an insurrection against the established government under the battle flags of class warfare and social justice, with an end goal of socialism and/or Marxism.
But to the rest of the citizenry, who aren’t familiar with the term, it sounds like a nice fellow who runs the local community center and sets up bake sales.
Or a hand in the garbage disposal.
Looking through the comments on here, I was surprised that no one had mentioned the various “holes” one can flush money down:
Toilet
Sewer
Teacher: Okay, class, we are going to see what happens when Uncle Sam thinks it is a good idea to shovel money to corporations to create jobs.
Johnny: I wanna see! I wanna see!
Teacher: Okay, we dump this stimulus money in the toilet and pull the handle down. What happens?
Johnny: I know! We watch it swirl around and around and down it goes; where it stops, no one knows!
can not some ag place charges, have people arrested and then go to trial and then perhaps jail time?
still in japan
Obama Regime Approves $737 Million “Loan” to Solar Company Where Nancy Pelosi’s Brother In Law is a Top Executive.
But, remember, crony capitalism and payouts to connected politicians are crucial to competing with China.
So much for draining the swamp … here’s a case where we should throw out the Pelosi with the swamp water.
And the frauds in the lame/blame/shame stream media just don’t seem to be catching on.
” Tax code should be one page long, one side only…”
If, God forbid, Obama is re-elected, it will be, most likely as follows:
How Much did you make in 2011?__________
Send it in !