This Isn’t ‘Lending’ — It’s More Like Looting
One of the definitions of “loot” as a verb is: “to rob, as by burglary or corrupt activity in public office.”
Excuse the pun, but as bankrupt Solyndra sinks into the sunset, two levels of needed lesson-learning to prevent future looting as just defined are not taking place.
The first lesson should be that there are consequences if you do something extraordinarily dumb, and even more serious consequences if you commit criminal acts. I’d like to be wrong about this, but it looks like those responsible for this debacle will never be brought to account for offenses ranging from colossal incompetence to serious criminal malfeasance. (A convenient low-level scapegoat has resigned, but landed on his feet at a lefty think tank.) Because of this, it’s reasonable to expect that there will be similar future failures, possibly larger in scope.
That Solyndra requires a top-to-bottom forensic audit could not be more clear, both to determine what its executives knew and when they knew it concerning the company’s dreadfully obvious lack of viability, and to determine how much money was drained from it by excessive and possibly fraud-driven spending.
Is the necessary unfettered investigation occurring? The FBI has raided the place, but Solyndra management is stonewalling. With government acquiescence, Solyndra’s key investors moved themselves, possibly illegally, to the front of the line in priority during bankruptcy. One of those investors is a prominent Democratic Party campaign contributions bundler. Eric Holder, Obama’s chief protector, is attorney general. You do the math.
The guess here is that Solyndra’s execs knew that the company had little if any chance of surviving shortly after and possibly even before it began drawing down its loan-guarantee money. Yet they kept drawing and drawing. Why? The explanation seems to go far beyond merely wishing to keep themselves and others employed.
Fundamentally, the company’s business model was terminally flawed. It would have been an embarrassment both to the company and the Obama administration to admit as much. As Grace Wyler at Business Insider explains:
Its unique cylindrical, silicon solar cells were innovative, but only made sense when solar panel prices were high. By the time the Department of Energy (DOE) approved Solyndra’s loan — the first granted by the department’s loan guarantee program — Chinese and Canadian manufacturers with low-cost structures had priced Solyndra out of the market.
Solyndra’s management had to know this. Even if they didn’t tell those in the government who reviewed its loan-guarantee application (and of course they should have), anything resembling decent due diligence should have identified the problem. But, as Wyler notes, due diligence wasn’t a priority: In March 2009, “Solyndra’s loan application … was fast-tracked through the DOE, despite the fact that the department had not completed its review of the company’s financial viability.” The folks at the Office of Management and Budget, which did raise some financial questions about the deal before approving it in September 2009 — after also getting pressure from others in the White House to speed it along — likely did not have the technical or market knowledge to know what DOE could have and should have detected.
Solyndra’s spending spigots were wide open even before the company got its government-guaranteed money. The firm’s S-1 Registration Statement for its withdrawn attempt at an initial public offering, which included the now-infamous “going concern” opinion from PricewaterhouseCoopers, revealed that it had already spent $415 million on property, plant, and equipment by the end of 2009. From the time its $535 million in loan guarantees was approved until it shut its doors, the company spent roughly $300 million more on what was touted as an advanced manufacturing facility; it had hoped to spend $80 million more before repeatedly selling its product at an out-of-pocket loss caused the money well to run dry. All told, the company “invested” over $700 million to make a high-tech yet relatively uncomplicated product: “photovoltaic systems for commercial rooftops.” By comparison, Honda Manufacturing of North America built a complete 1,700-acre automobile assembly plant in Greensburg, Indiana, for $550 million.
I sincerely hope that having been given several full-blown examples of “looting”
and criminal activity by this edministration and its cronies; that we (the electorate) HAVE learned our lessons well.
Why else would all this “looting” be exposed in such a timely manner if it was not for the express purpose of informing our consciences, so that we can make wiser decisions in 2012? I call this the mercy of God – being as we have been given an opportunity now to decide our future path as a country.
Our choice is becoming clearer every day:
Totalitarianism and dependence on the almighty State OR
Freedom and dependence on God, the author of our freedoms – as laid out nicely in the constitution of the U.S.A.
Thanks to Solyndra, we now have a new definition of that iconic Eighties term, “corporate raider”.
That is, a corporation which apparently was created for the express purpose of “raiding” the public coffers, and transferring the money to not corporate “fat cats”, but the Democratic Party. And using “politically correct” dogmas, i.e. “green energy”, to alibi the scam.
Which causes me to wonder how many other “green jobs” initiatives need a serious audit.
And whether such an audit of even one might not reveal sufficient evidence of at least incompetence, if not actual deliberate malfeasance, as to require Steven Chu’s resignation.
clear ether
eon
The Government should not be in the Venture Capital business. It has no capital of its own to venture. It doesn’t suffer any loss so cannot make the best choices where capital should flow. Government investing is ANTI-capitalism. No wonder the #OWS people are pissed off. I am too.
Correct, the government should not be in the Venture Capital business. We have a government that is being run by a bunch of self annointed techno-crats who think they can pick the winners and losers in the private sector.
And apparently they can pick winners and losers, not by analyzing business models, intellectual property, talent, and markets as a true VC invester, but by shoving enough of other people’s money at them.
Even the losers are ‘winners’ for them, if they can complete the political donation recycle loop.
They are defining who are ‘winners’, not the market. Which is why this has no resemblance to capitalism.
Link Blumer rides again..!
You don’t understand what Solyndra was all about, any more than you understand what the waivers from ObamaCare were all about. They were all a method to generate campaign contributions out of the public treasury. Nothing more, nothing less. All the rest is smoke and mirrors. Cherchez le monnaie.
Benton you are so right. and this intire administration needs to pull 40 years at hard labor in Leavenworth prison,
Reportedly, energy sec’y Steven Chu was trying to get another $400 million or so to pour down the Solyndra rat hole as the company was circling the drain.
Unfortunately, Chu & his assorted rodents scurried around & managed to get billions more taxPAYER dollars out the door & down the rat hole before the close of the fiscal yr on Sept 30.
I have been saying all along that Obama has been looting the system and robbing us blind.
Get a clue people!
Why else do you think that billions of dollars seem to be vanishing into thin air while there is absolutely nothing tangible to show for all the reckless spending?
http://www.commieblaster.com/
obama nation you are so right. this intire administeration needes to pull 40 years in Leavenworth at hard labor. this is the most corrupt regime I have seen or heard of in my 75 years of life. JAIL everyone of them,
What bothers me most about this whole Solyndra scandal is that, once it is over, the American people will think the Federal Governmnent will not waste any more money on anything. FAT CHANCE! There are literally hundreds of Solyndras being funded by the Federal Government at this very moment, only we either don’t know about it or are not paying any attention to it. We always hear about those projects that waste a million dollars here, or twenty million dollars there, and just accept it as if that’s just the price of doing business in government these days. The first “Stimulus” law that was passed was filled with such projects, yet Congress did NOTHING about it. And lets not even talk about liberal slush funds that keep going on for generations, like funding NPR or PBS. I guess if you waste anything under $100 million in Washington these days, that’s just a rounding error.
And trust me, there are a number of projects that are terrible failures at the Pentagon as well. There was an amphibious fighting vehicle that was under development for years by the Marine Corps at the cost of billions of dollars, only to see the whole project canceled because it simply wasn’t worth it anymore. The Navy had it’s Littoral Combat Ship debacle and the Air Force the F-22 fighter, the black hole of spending that even Congress addmitted wasn’t worth the price anymore. This is to name just a few of the programs botched by the Pentagon when it comes to spending.
And none of the candidates running for president, NONE OF THEM, has ever mentioned stopping the wasteful spending Washington does on a daily basis. Oh, they may talk in very vague terms of “cutting waste” here and there, but they never talk about what they would actually DO to cut that waste. The Federal Government has become a cash cow for endless corporations and special interest groups in America, not to mention government-funded “studies” and “training programs” which even the Government Accounting Office (GAO) now admits actually trains few people.
So bully for Washington, they caught Solyndra scamming the Government for millions of dollars. But for every Solyndra, there are about 50 others doing the same thing. What we need is a president who has to be the cheapest S.O.B. in the world when it comes to spending OUR MONEY. And with that attitude will come reviewing all of these programs to see which is being well run and which can be totally eliminated. Americans do not mind seeing their money well spent on numerous projects, they just resent seeing it thrown away on the Solyndras of the world.
I guess if you waste anything under $100 million in Washington these days, that’s just a rounding error.
This is what happens when there is no connection between the spender and the spent.
Which is why I think Obama, Chu, sundry Solyndra lobbyists (who were, just coincidentally, fundraisers & bundlers for Obama) and the whole crowd should be obligated to pony up the original half billion out of their personal finances.
“…..the American people…..”
The American People are clueless. Politicians rely on the short memories of the voters to abuse the system. This applies to Democrats and Republicans, but mainly to Democrats.
No investigation is needed. Common sense ordinary people know exactly what happened: This was a money-laundering operation: A way to turn taxpayers funds into campaign contributions.
We should view Solyndra as an opportunity owever – an opportunity handed to us on a silver platter by the leftists. I think everyone understands this was a bad deal, which makes it a valuable point of argument. Every time Obama and his ilk want to raise taxes the answer should be “Not one more dime in taxes so you can throw it away on deals like Solyndra.”
Exactly! I keep posting on many sites – no tax money for more of his cronies. At some point will these “smart” businessmen ever get embarrassed by the criminal activity they are in with this pres? He couldn’t even apologize for solyndra when he said, “well some won’t work out”, in other words, gee so sad 1/2 billion dollars, but it’s not my money but my buddies will be protected (illegally).
this intire administration needs to pull 40 years at hard labor in Leavenworth,
These criminals will NEVER do hard time because Obama will pardon them all, including himself. One thing about Obama, he is not stupid, but Machaviellian and ruthless.
The president can not pardon him self if he is guilty of a crime he would be impeached of his presidency and possibly imprisoned!
Solyndra is only the tip of the iceberg.
http://www.weeklystandard.com/blogs/crony-capitalism-737-million-green-jobs-loan-given-nancy-pelosis-brother-law_594593.html
“Taken the State whereever found,striking into its history at whatever point,one sees no way to differentiate the activities of its founders, administrators, and beneficiaries from those of a professional criminal class”.
Albert Jay Nock, who I recommend you all read.
It is and is designed to be exactly criminal activity, why be vulgar and hold up banks, become a politician, preferably a Democrat, and be applauded while assauting your society and stealing and wallowing in other people’s money.
Think about it, millions of LittleLiberals and 90% of the media love it and want more, psychotic !!
Tom,
Loan guarantees are infrequent for startups for another good reason. The guarantor has little or no say/influence on how the enterprise is run, as they would if they were major shareholders. All such a lender gets is 1st position in auctioning off the remains. Well, usually first position.
There is a connection between gun-running to Mexican drug cartels and green-running to companies in a fiscal death spiral and to Nancy Pelosi’s “family business”.
The Democrafia is hard at work making the five families money.
Boss, Underboss, Consigliere, Capo, Soldier, and the declared ONE himself “capo di tutti capi” — the ultimate boss over all of the families.
Now Eric “The Red” Holder, the Democrafia Consigliere, he’s in a bit of a bind on the gun-running end of the business. Somebody is going to have to take the fall. Probably a soldier or two, maybe a capo.
Barney “the Rubble” Frank was running prostitution, mostly out of his basement, but when the Tea Party went to the mattresses he had to lay low for a while.
Joe “the Gaffe Hook” Biden, the underboss, said:
“Many of [the American people] are in real trouble, an even larger percentage have stagnant wages, and a significant majority . . . believe that the country is not moving in the right direction. That is never a good place to be, going into reelection. Whether it’s your fault or not your fault: It’s almost, sometimes, irrelevant.”
Does this sound like a guy who is waiting for his fate, or what?
Nancy “Quick Lift” Pelosi has moved the Greenwich Village crew out to SF, her followers are now out in force in the Occupy the Port-a-Potties acid flashback tour. She has been busy doing the “laundry” of some money through her “green” ventures. Ron Pelosi, her brother in law, is the uncle of the mayor of SF…if you can keep all those players straight…without a scorecard.
Harry “Don’t Call Me Donna” Reid, has invoked the “nuclear option” in order to wipe out the competition’s voice in running the Democrafia family business.
Gun-running, prostitution, money laundering, union takeovers, loan sharking, protection rackets, …it’s all in a day’s work.
Bill “Is that a Bonnano in your pocket, or are you just happy to see me” Clinton is reportedly out of the family business, but don’t you believe it. With the media in their pocket and half the Supreme Court, it’s not too far fetched to believe that we might have to pony up some more money for the Solar Panel Benevolence Fund this Christmas.
Just as long as you follow the lead of our corrupt media and adhere to omerta , the conspiracy of silence. That makes you a made man in The Democrafia.
Go cfb. It is a pleasure to see someone surpass himself.
What a cast of characters !
Perfect for an off (VERY VERY OFF !) Broadway play.
Too bad HBO doesn’t have the guts to go for it. Puts The Sopranos to shame. Great post.
What does this say about the current crop of “venture socialist” business executives who see defrauding and strip mining the taxpayer as a legitimate business tactic?
I hope everyone has seen the investor that pushed himself to the front of the line George Kaiser’s speech where he revealed that there will be “more money shoved out the governments doors in the next eighteen months than at any time in history” and that he was there to make sure that he and Oklahoma got its fair share.
What did Kaiser know and when did he others know it?
I see nothing less than a criminal conspiracy to defraud the US taxpayer among Obama’s most prominent financial supporters and campaign contribution bundlers. It is also far too common among ALL members of the political class.
Everything about Solyndra, its management and Chu-Bama’s investment of taxpayer dollars screams either a) dangerously delusional or b) criminal.
In spite of its new technology, Solyndra was fundamentally selling a commodity product, which means competition and the market control pricing. Solyndra charged twice as much as its competitors and STILL sold its product for half the real production costs.
Solyndra defined its potential market as every square foot of every commercial rooftop throughout the world. Apparently without any consideration of geographic location, political stability, purchasing power and/or interest. Really?
Brace yourself. The Chu-Bama team has used our money to “invest” in a host of Solyndras. More “unexpected” failures will be coming our way soon.
So, like a Ponzi scheme- pump it up fast, get all in early, because it will collapse soon. People knew -inside, outside, in government, heck even little
average joes knew- it was flawed.
Yes, there are more. Scams abound.
Snakeoil salesmen and con artists and politicians…who’s who?
Yes, Charles, I think they knew what they were funding was shady, shaky and read to collapse.
But, hey, other peoples’ money, what’s the problem, right?
And the short answer: Snake oil salesman = con artist = politician, epitomized by this Administration.
Solyndra might be financially bankrupt but not before this administration was morally, ethically and emotionally bankrupt.
I would be interested to learn whether and to what extent the 0bama administration bet on passing Cap-and-Trade as a means of enhancing the market position of otherwise economically dubious green enterprises such as Solyndra.
I appreciate that Cap-and-Trade, by itself, might have done little to influence the comparative marketability of Solyndra’s product relative to its foreign competitors, but I have significantly less confidence that foreign production cost considerations would have moved the 0bama ideologues away from their starry-eyed, doctrinaire wishful thinking.
my best friend’s mom makes $77 an hour on the computer. She has been out of job for 9 months but last month her check was $7487 just working on the computer for a few hours. Read about it here LazyCash4.com
Tell Madoff. He will love it.
It’s curious; pretty much anyone familiar with Silicone Valley and its history knows you can no longer manufacture there on a cost effective basis. Even Steve Jobs, their hero, had to move production to China’s child labor mills to get the new Macs built.
Issa must seize the notes/memos of Solyndra’s board’s compensation committee. That is where the record of who was granted “phantom” company stock is. On a pre-IPO basis, a grant of shares or, even, an option to buy at a given price, can be better than cash (could be taxable at the capital gains rate and not the earned income rate).
This is the way that early participants who worked pro-bono or volunteered to help a struggling start-up business can get a reward if the company does well going public. An frequent example is the relative or college buddy who designs the company logo an charges nothing. Ten thousand shares (costs the company nothing) in the after market once the company goes public could be very valuable. If the company goes belly up, the designer gets nothing.
My bet is that the list of grantees has some folks who are related to other folks that we know well. I hope Mr. Issa has this in mind.
The question is whether there was a conspiracy between the Solyndra. How much money was given by the Solyndra’s board and execs. to the Democratic party and the Obama reelection. Was it a loot for profit from the start with the intentional goal to swindle the US taxpayers.
Can we ignore the inertia of history when it comes to Solyndra? How far back should we go? The Hoover administration and the crash of ’29? There are good thoughts in these comments but a dearth of history which laid the foundation for Solyndra is not once cited.
Go back and research Franklin Delano Roosevelt and his New Deal. He said he had to put money into circulation. He made laws that began to transfer venture capital to the federal government. Check out his alphabet soup he fed the nation — WPA, CCC, AAA, REA, TVA — the list is long and socialist. After WW II the government began to move on our financing with a vengeance. We jumped into foreign aid that helped the ruler remain in power but did little for the poor of this world. Our commerce did far more to remove global poverty till we let the elites get hold of those strings.
Without global warming there is no justification for Solyndra and global warming is a political ploy to justify the looting. Coal and oil do pollute but we have learned economical ways to control that pollution. Still our government wants to pile on more regulations than we can sustain and far more than needed.
Why would they do this? Shouldn’t we have some straight answers?
When the rich get rich by industry what good is their riches? Be careful, this is boggy ground. All of us have limited personal consumption so excess riches become charity, venture capital, grants and loans.
Taking this surplus in taxes does not increase its value but it does change ownership. Robbery also changes ownership.
The government cannot create capital, neither can it manage capital others create. We need to get our government out of the financial business and return the capital to those who create it. Let the Socialist of the world do away with their profit but keep their cotton picking hands off our profits,
my best friend’s mom makes $77 an hour on the computer. She has been out of job for 9 months but last month her check was $7487 just working on the computer for a few hours. Read about it here LazyCash4._c3o$m
Loan guarantees,subsidies and grants from the government generally end up with unending payments from the U.S. taxpayer. If the venture is going to be successful, why would not venture capital rush to get in? Wind and solar investors to date have not got in, unless backed by your money that you sent to pay your taxes. Invested without your permission.