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  (Source: cleantechnica.com)
The Obama administration defended a loan of over $500 million to a Silicon Valley-based solar panel company that recently went bankrupt despite warnings

The Obama administration defended a loan of over $500 million to a Silicon Valley-based solar panel company that recently went bankrupt despite warnings, saying that the economy was to blame and that alternative energy investments must carry on regardless. 

According to MSNBC, the government loaned solar panel company Solyndra $535 million in 2009. The move was set to stimulate economic growth through environmentally friendly jobs. But Solyndra recently declared bankruptcy, laying off 1,100 workers. 

Last week, the Federal Bureau of Investigation (FBI) raided Solyndra's headquarters to investigate whether the government was given the wrong idea when it handed over the hefty loan. Emails from government employees were found, and are raising questions about the Obama administration's actions back when Solyndra was given the loan. 

According to The Washington Post, the emails contained warnings from government employees about the viability of Solyndra. Only days before the final approval, an email predicted that the project would run out of money in September 2011 -- which is exactly what happened. 

Another email from government staffers questioned the model the government was using, but said "given the time pressure we are under to sign off on Solyndra, we don't have time to change the model."

Reports state that the White House pushed the loan ahead despite warnings in order to meet political deadlines. That way, Vice President Joe Biden could announce the final approval at the groundbreaking for the new plant two years ago. 

The U.S. Department of Energy's loan office and the White House budget office is defending their decisions, saying that the Solyndra loan was well in place during the final years of President George W. Bush's administration. 

“In fact, by the time the Obama administration took office in late January 2009, the loan programs staff had already established a goal of, and timeline for, issuing the company a conditional loan guarantee commitment in March 2009,” said Jonathan Silver, executive director of energy loan programs.

Much of the Wednesday hearing consisted of "assigning political blame," where Representative Cliff Stearns (R-FL) who is the chairman of the Energy and Commerce subcommittee on oversight and investigations, criticized the Democratic minority for voting against the subpoena documents in regards to the deal. 

“It should not take a financial restructuring, bankruptcy and an F.B.I. raid for my colleagues on the other side of the aisle to put politics aside and join us in our efforts,” said Stearns.

Representative Diana DeGette (D-CO) responded by saying that solar energy is not an issue of Democratic or Republican, but rather the security of American energy innovation in the future. 

Democrats didn't defend Solyndra, but did defend the government's ability to push the solar industry in order to compete with China, which is encouraging solar energy on a large scale. 

Representative Joe Barton (R-TX) added that the U.S. Department of Energy is expected to award billions of dollars more in loan guarantees by the end of this month alone, and questioned its ability to choose those who will receive the loans. 



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Foolishness
By Beenthere on 9/14/2011 4:03:46 PM , Rating: 2
...except the car companies paid back their loans. The war on terror is forever so get use to it.

That $500 million could feed a lot of unemployed people or repair a lot of roads.

Giving Bama a pass on these deals is totally foolish. He's a liar and a scammer - like most politicians. The only question is when he'll be convicted and sent to prison like other dirtbag criminal politicians.




RE: Foolishness
By retrospooty on 9/14/2011 4:21:02 PM , Rating: 5
"The only question is when he'll be convicted and sent to prison like other dirtbag criminal politicians. "

To be fair, they are all criminals... We'd have to do that to pretty much everyone in Congress, Reps and Dems.

Wait... We may just be n to something.


RE: Foolishness
By fic2 on 9/14/2011 4:29:02 PM , Rating: 5
The car companies used money borrowed from the gov't to pay back the gov't - i.e. they got a new credit card to pay off the old credit card. They might actually pay back the loans, but don't think that it has happened yet.


RE: Foolishness
By Dorkyman on 9/16/2011 7:22:16 PM , Rating: 2
As I recall GM made a big deal about "paying back" a few months ago. But they were silent on the fact that the US was stuck with billions of dollars worth of stock that was in the pits. If the stock was sold now the loss would be many billions.

Plus, GM got a sweetheart deal from the US about carrying forward losses to offset profits. That deal alone is worth billions.

Who wins? The unions that Messiah anxiously needs to protect (they are a major campaign contributor). Who loses? The American taxpayer.

2012 can't come soon enough for me.


RE: Foolishness
By MrBlastman on 9/14/2011 4:43:48 PM , Rating: 2
Sadly, when you get that far up the ladder and near the top (or at the top), the good old Patomac Two-Step seems to work nearly every time. :-|


RE: Foolishness
By Reclaimer77 on 9/14/2011 6:05:27 PM , Rating: 2
quote:
the good old Patomac Two-Step seems to work nearly every time. :-|


I'm sorry, Mr. President, I don't dance.
-Jack Ryan-


RE: Foolishness
By Samus on 9/14/2011 9:47:10 PM , Rating: 2
The cheapest car in that picture of their parking lot is a tie between a WRX STi and a Lexus IS300. I'll just leave the luxury German auto's alone.

And your telling me there wasn't some sort of corruption there? I wonder how many 6-figure employee's they had. 7-figure? No kidding the FBI is investigating. Amazing they blew through 1.5+ Billion dollars in under TWO years, without actually manufacturing very many products.


RE: Foolishness
By adiposity on 9/15/2011 12:46:13 PM , Rating: 2
quote:
The cheapest car in that picture of their parking lot is a tie between a WRX STi and a Lexus IS300. I'll just leave the luxury German auto's alone.


My friend worked at Solyndra and drove a 1990 Lincoln of color he likes to call "oxidized grey." Of course, he quit about a year ago, when he saw the writing on the wall.


RE: Foolishness
By lolmuly on 9/14/11, Rating: 0
RE: Foolishness
By borismkv on 9/14/2011 5:28:30 PM , Rating: 2
Bank loans, yes. Government loans, usually not. Just consider the people who rack up hundreds of thousands in student loans. There's never any guarantee that it can be paid back at the start. The government assumes the investment will pay off and if it doesn't they just garnish wages and ruin credit (As well as deny any attempts to obtain government clearance)


RE: Foolishness
By borismkv on 9/14/2011 5:28:52 PM , Rating: 2
damn it...replied in the wrong spot :(


RE: Foolishness
By FITCamaro on 9/14/2011 9:41:51 PM , Rating: 1
As another said, they didn't pay back the money. They just took out a different loan to pay back the first one. Plus they will never pay back the money given to them before they went bankrupt.


RE: Foolishness
By Paj on 9/15/2011 8:03:11 AM , Rating: 2
quote:
The war on terror is forever so get use to it.


Especially when you keep arming them!


RE: Foolishness
By johnsmith9875 on 9/15/2011 2:25:30 PM , Rating: 2
This is not a government problem, this is a simple case of corporate theft. Hopefully a CEO and his cronies will soon see the interior walls of a supermax prison, but I doubt it.

Steal $50, go to jail for 20 years.
Steal 50 million, go to jail for 20 days.


RE: Foolishness
By The Raven on 9/15/2011 5:11:27 PM , Rating: 2
Although you might want to frown upon the people at Solyndra like the guy who robs a bank, it is not the same thing.

The difference is that the bank has a vault with the money locked up and the robber has a bomb.

The gov't was HANDING out the money... and Solyndra was unarmed.

The failure is the gov't's. Let's focus here.


"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain














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