Obama Says he Has No Regrets on Wasting $535M on Failed Solar Startup
October 4, 2011 8:15 AM
comment(s) - last by
That's right Mr. President, keep loaning the money, everything is going GREAT!
(Source: Getty Images)
President says high-risk loan was "felt like... a good bet"
This article contains
, which is the opinion of the author.
President Barack Obama has endured scathing criticism in recent weeks for
loaning $535M USD to failed solar startup Solyndra
. The loan came as part of a $40B USD "green" technology stimulus effort. But on September 1, 2011 Solyndra filed Chapter 11 bankruptcy, leaving its 1,000+ employees looking for work and leaving the government staring at an un-recoupable loss.
I. Interview: Obama says "No" regrets on wasting $500M USD
In recent weeks Republicans have lashed out at President Obama for the lost money. They argue it's indicative of the President's overall budget incompetence. They've launched a probe into the loan and the Department of Energy's overall loan infrastructure. States Rep. Michael Burgess (R-Texas), a member of the House Energy panel’s investigative subcommittee, "We need to hear from Secretary Chu and [White House Office of Management and Budget Director Jack] Lew to fill in some of the blanks. The buck has to stop someplace, and presumably it stops with the heads of those agencies."
But the POTUS is holding his ground. In
"Good Morning America", also broadcast online on
Monday, anchor George Stephanopoulos asked President Obama if he regretted the 2009 loan guarantees . He replies, "No I don't. Because if you look at the overall portfolio of loan guarantees that had been provided, overall it’s doing well. And what we always understood is that not every single business is going to succeed in clean energy."
President Obama's administration is accused of rushing the loan guarantee in order to allow it to be announced at the September 2009 groundbreaking of the company's new factory. By February the loan was already under investigation. Still, the President stood firmly behind Solyndra, visiting their California headquarters in early 2010 and touting them as a green energy "leader".
Some emails that have been released indicate some administration members had expressed concerns about the company's financial health -- concerns that were ultimately overruled.
Obama implied America has to
get more China-like
when it comes to loans, in order to compete with the Asian rival. He states. "If we want to compete with China, which is pouring hundreds of billions of dollars in this space, if we want to compete with other countries that are heavily subsidizing industries of the future, we have got to make sure that our guys, here in the United States of America, at least have a shot."
II. Editorial: Business as Usual in Washington, D.C.
To be fair, as bad as the Solyndra loss looks, the previous Bush administration spent many times that essentially paying off the losses of the American International Group (
), which it built up from taking on risky investments pre-recession. AIG received over $127B USD [
] and sent over $100B USD overseas to banks it owed money to.
Thus perhaps the Solyndra debacle is more of a testament to how things are run in Washington no matter which party is in charge, rather than a sign that President Obama is somehow exceptional or different, for better or worse. Both parties talk about balancing the budget, but it's a matter of public record that in recent years both parties have overspent, committing to risky investments and troubled assets.
That's not to say what the Obama administration did here was right by conservative fiscal standards. As the old saying goes, two wrongs don't make a right. But if there's someone who offers an alternative to this kind of spending they're likely not in Washington, D.C. -- or at least likely not very popular there among either party.
These kinds of wastes are particularly sad, as they come at a time when proud American science projects are being shuttered due of lack of funds. America recently
closed the world's second largest particle accelerator
, because the government claimed it couldn't find $100M USD out of the $3.4T USD budget to pay for the accelerator's annual operating costs. The AIG funding could have paid for over 1,000 years of operation. The Solyndra funds could have extended the life of the accelerator 5 years.
One thing's for sure when it comes to Solyndra, though -- President Obama isn't going to say sorry for what happened.
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RE: At least he's honest for once...
10/4/2011 1:22:48 PM
It's not really a big deal.
Your dismissive attitude about this is really disturbing. This is a VERY "big deal". Also we shouldn't even be having this level of government intrusion into the markets. Crap like this is why.
"Investments" imply that you take a risk to make a return. Well there was no risk, because it's not private money. And there was NO chance of a return, that was known before the loans were even made. In the purest sense, this wasn't an investment. Solyndra was a dead end, always has been. Back in 2009 when they tried to get a "loan", they were rejected because their expenses doubled their profits. Would you invest in that?
Factor in the obvious political ties between Kaiser and Obama and fraud and we have a very big story here. Comparing this to student loans is asinine!
RE: At least he's honest for once...
10/4/2011 2:25:12 PM
If there is a failing of the US in modern times it is the fact we don't take risk and we don't let risky ventures fail. Why? Because "We the People" back the lion's share of every loan created through a bank via FDIC. If a bank fails who gets the tab? We do.
We set up systems to privatize profit, and publicize debt. That is one of the many dangers of getting rid of something like social security and turning it over to Wall St. Then Wall St won't be able to fail because everyone's retirements are tied to it.
What is asinine is that fact you look everything on a micro scale and fail to see the bigger picture then whine about it. Then you talk about how great something else would be that would lead to even bigger necessary bailouts. Let's just tell everyone that invests in anything that they'll certainly make money... like a real Ponzi scheme.
RE: At least he's honest for once...
10/4/2011 4:43:15 PM
privatize profit, and publicize debt
The government is publicizing the debt. In this case, a little over $500,000,000 of debt. Then the government privatizes the profits, but only to those that are chosen by the political tyrants.
It is indeed a terrible system that
be stopped for our country to survive this tyranny.
Laissez Faire capitalism supported by a return to federalism will cure this system. But the longer we wait to take action the more difficult it will be to kick the bad habits.
"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
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