Skip to comments.Another Solyndra?
Posted on 02/06/2013 7:13:19 AM PST by stocksthatgoup
Despite a few bumps, and much to the chagrin of those still celebrating the invention of the wheel, the modern energy market continues to expand. .. $529 million. More than a half billion dollars. That's how much the electric car manufacturer Fisker Automotive was initially promised by Uncle Sam. That was a few years ago, and since then the automaker has delivered about 1,500 vehicles to customers. But this outfit is far from being in good shape..
(Excerpt) Read more at energyandcapital.com ...
And in fact, today the company is actively looking for potential partners because, as company spokesman Roger Ormisher said, Without a partner, it would be difficult for Fisker to survive.
That's not too reassuring for a company that's already drawn down $192 million of the government's loan. Fortunately, the remainder of that loan has been suspended due to delays with the company's first model, the Karma.
Of course, $192 million is peanuts compared to the more than $1 billion in private equity the company has managed to raise. But it's still enough to piss tax payers off (rightly so) and ignite yet another firestorm against electric cars and alternative energy.
Not Ready for Prime Time?
I have to admit the shrapnel from Solyndra and A123 has been tough for a modern energy supporter like me to handle not because these two companies represent the modern energy industry as a whole (because they don't)... and not because taxpayers footed some of the bill for these failures (although to say that doesn't bother me would be a lie)...
No, the reason this kind of stuff is so frustrating is because all those modern energy detractors out there use these examples of failure as a way to attack the transition of our energy economy. A transition, by the way, that is absolutely necessary if we have any intention of maintaining any kind of economic advantage in a rapidly-changing world.
Now, I'll be the first to admit there are few things I like more than the government picking winners and losers in the energy game. It's thanks to this type of interference that many of the superior energy technologies available today struggle to swim upstream against a heavily-subsidized and lopsided energy market.
If someone came up with a portable energy source economically superior to petroleum products he would become the richest man on Earth.
So in the big picture these dog biscuits politicians hand out to their "good boys" are laughable.
If only Tesla had completely figured out how to broadcast power, we wouldn’t need no steeking batteries!
If somebody invents something better than petroleum, I'll gladly buy his products and I'll be better off as I'm spending less on energy. If I invested as a private citizen in this effort, I'd expect to get filthy rich. If my tax money goes to this effort, why does the other guy get rich?
The problem with those dog biscuits are that they are my dog buscuits the government is giving away, and it leaves me poorer. And it leaves society much the poorer as the guy who might find the new energy source can't get any investors.
Government investment is worse than a crap shoot. The incentive is to never find anything, just keep investing a good part of the cash back into campaign contributions to keep the gravy train rolling.
If you want to invest in Solyndras, go right ahead, but not with my money. Not wasting my money is a big deal to me. And risking my money when somebody else gets the big payout doesn't really sit well.
I was talking from the perspective of the big picture. And in a $16 trillion economy $100 million is a dog biscuit.
Put 10 thousand dog buscuits toggether, like our rulers do, and you are talking real money.