Conclusion — the even if’s
Even if — the Utility companies had the appetite to spend €938bn they don’t have the organizational capacity to do so;
Even if — they had the organizational capacity to spend the money the supply chain couldn’t provide the equipment;
Even if — the supply chain could provide the equipment the Utility companies don’t have the balance sheet to finance the investment;
Even if — the Utility companies could raise the equity they wouldn’t be able to afford the cost; and
Even if — the Utilities could finance the investment, the consumer wouldn’t be able to afford their bills.
This Associated Press headline from the weekend – “Green energy funds are testing investors’ patience” — provides some insight. Maybe Citi didn’t fully take its own advice, and is stuck with a bunch of these “clean energy economy” pooches. So, like Goldman and Deutsche Bank, they badly need to talk their own book to pump some phony, taxpayer-funded — and therefore temporary and wasteful — life into their picks.
Dunno. But there’s got to be some reason for hiring someone like this. A company so steeped in requirements of due diligence can’t have missed his record.
I just hope he ends up saying something as part of this new gig along the lines of “we’ll create all sorts of jobs if we underwrite these basket cases.” Because when not banging away loopy diatribes at his keyboard, he’s also been busy popping off with video cameras present, saying that that ain’t so. I think more such comments would lead to a healthy discussion.
Again, way to go, Citi. How did you ever find yourself in a position needing a bailout?