Skip to comments.Stimulus Companies Hit Rock Bottom
Posted on 09/16/2011 3:18:20 AM PDT by Evergolightly
Solyndra, the solar panel company whose highly publicized failure and consequent investigation by federal authorities has flashed across headlines recently, isn't the only business to go belly up after benefiting from a piece of the $800 billion economic stimulus package passed in 2009.
At least four other companies have received stimulus funding only to later file for bankruptcy, and two of those were working on alternative energy.
Evergreen Solar Inc., indirectly received $5.3 million through a state grant to open a $450 million facility in 2007 that employed roughly 800 people. The company, once a rock star in the solar industry, filed for bankruptcy protection last month, saying it couldn't compete with Chinese rivals without reorganizing. The company intends to focus on building up its manufacturing facility in China. Related Video
Lawmakers Question White House Role in Solyndra Scandal
Did administration know about troubles of green energy firm before $535M loan was given?
SpectraWatt, based in Hopewell Junction, N.Y., is also a solar cell company that was spun out of Intel in 2008. In June 2009, SpectraWatt received a $500,000 grant from the National Renewable Energy Laboratory as part of the stimulus package. SpectraWatt was one of 13 companies to receive the money to help develop ways to improve solar cells without changing current manufacturing processes.
The company filed for bankruptcy last month, saying it could not compete with its Chinese competitors, which receive "considerable government and financial support."
On Tuesday, Deputy Secretary of Energy Daniel Poneman wrote an editorial for "USA Today" in which he blamed China in part for the failure of U.S. solar energy manufacturers to compete.
Read more: http://www.foxnews.com/politics/2011/09/15/despite-stimulus-funding-solyndra-and-4-other-companies-have-hit-rock-bottom/#ixzz1Y6loS7GZ
(Excerpt) Read more at foxnews.com ...
The greenies and enviromental wackos running the dimmah party need put back in their cells
“people who have no actual understanding of economics”
only half the problem.
The other half, and more important, the government has no constitutional basis for giving public moneys to private corporations. That’s the definition of facism.
It takes lots of energy to fabricate solar cells. Greenies have done everything they can to increase the cost of energy here. The result is a lower standard of living for everyone and an inability to compete with countries that have lower energy costs.
And what’s worse is government heavily subsidizes solar cell use, otherwise it wouldn’t be “economical” to the consumer. Essentially all those subsidies are going to China...
Government giving money to private corporations is corporate cronyism/socialism.
Government “partnering” with private corporations as in controlling what those companies should produce is fascism.
Yes, we’ve got a fascist President... GM is a primary example.
Right. This is criminal.
Somehow, Solyndra and GM seem to be the essence of liberalism, and why liberalism fails, and why it is so dangerous.
In a normal investment environment, investors would have their own money on the line, and be taking a risk. they would have a direct and immediate stake in whether or not their money should be invested, because they might LOSE IT. They would have a highly rational, unemotional approach to the issue, and would exercise due diligence in their investment. They would evaluate the market, the people running the business they are thinking of investing in, how good are their operations, do they hire good people, do they follow the rules, are they going to make money or not.
Those investors who do not do successful evaluations, FAIL. They are not allowed to invest money in stupid ventures anymore, because they LOSE all their money, and are unable to participate further. Those who are successful not only survive, but prosper, and can take MORE money (because they have more that has been successfully earned) and invest it.
THIS is economic Darwinism at its steely core. The example above is the figurative culling of the economic herd, and the herd is healthier for it.
THIS is why Solyndra, GM and other liberal endeavors are a CRIME. Investors (UNWILLING TAXPAYING CITIZENS) have their money taken from them against their will, given to people who have NO personal financial stake in the company (except to get campaign kickbacks, which they get regardless of whether the investment is successful or not) and the investment is made on a completely emotional basis. There is NO due diligence. There is no evaluation of the product or its prognosis. There is no analysis of the market, nay, in this case of environmental utopianism, whether people WANT these products is not even considered.
THIS SITUATION IS THE ESSENCE OF LIBERALISM AND STATISM.
I find this entire situation so offensive, my blood pressure feels like it is rising as I type.
Just curious, does anyone know if Solyndra’s employees were union?
It’s simply proof that therre is justice in this world. May every company that took stimulus money go broke.
Its possible but would seem unlikely in California.
The only “justice” that can come of this is if it comes out of Obama’s hide. Obama is the criminal doing this.
This isn’t Activism.
I’m telling on you guys..... I’m gonna teeellllllllll that you guys are making stuff up about da president of the telepropmters. Maybe then I can get my $400 million green job making renewable energy out of dog poop.
Yes Electrical union, and they got an unpaid day off when obuma visited the plant, the union went along with it.
We just can't have this kind of information out there in the open...
C'mon November, 2012!
And Ali-Bama needs another $500 billion to buy a new, improved lamp.
Definitely a shovel-ready, green job.
Even more perfect for the current administration...."Ali-Bama and the Farty Thieves".
(....sorry, slapping my cheek....)
The companies themselves are complicit, greedy, inept and engaged in bribery.
I wonder what his standards for success are.
Two other renewable energy companies that got stimulus money also went bankrupt last month. So what does success look like to the Obama administration?
Don't you realize the only reason obama rushed through the government donation of our tax dollars to Solyndra was because it was located in a “Right to Work” state, and he was afraid it could have very soon adopted automatic union certification?
What? This is not right? Never mind!