Skip to comments.Good Money After Bad
Posted on 09/30/2011 8:35:26 AM PDT by afraidfortherepublic
The Washington Post reported yesterday that Secretary of Energy Steven Chu gave Solyndra more taxpayer money even after Solyndra was in default on the governments $535 million loan guarantee:
Energy Secretary Steven Chu acknowledged Thursday making the final decision to allow a struggling solar company to continue receiving taxpayer money after it had technically defaulted on a $535 million federal loan guaranteed by his agency.
Chu spokesman Damien LaVera said in a statement that the secretary approved the restructuring agreement for Solyndra because it gave the company the best possible chance to succeed in a very competitive marketplace and put the company in a better position to repay the loan.
In late autumn of 2010, company executives confided to the Energy Department that they were running out of cash and could not make a required payment to a cash-reserve account. The company was supposed to begin making the first of $5 million payments to create a $30 million cash reserve on Dec. 1.
Solyndra officially defaulted on its loan that day. Chu approved a softening of the loan requirements so that the company could continue receiving loan installments.
Ultimately, the choice was between imminent liquidation or giving the company and its workers a fighting chance to succeed, LaVera said in the statement, first reported by Politico.
It is easy to understand what happened here: Chu threw good money after bad in the desperate hope that somehow Solyndra would pull a rabbit out of the hat and survive. He was like a gambler who gets behind and continues upping the ante in hopes that he will get lucky. Why did he do it? Because Chu knew that he and President Obama would both look like fools if Solyndra went down, and that Solyndras collapse would imperil the whole green energy agenda that is his sole interest as Secretary of Energy. So out of desperation, he wasted more taxpayer money. The difference between Chu and the gambler, of course, is that it wasnt Chus money.
Fire Chu, put him on trial, and cancel the EPA.
So, uh, how'd THAT work out...?
The operative word here is BLATANT! This administration thumbs it’s collective nose at every turn. Seemingly, they just dare anyone to call them out in some effective manner. All the while, the Republicans are cowering in their offices searching for their testicles to no avail. No wonder they have approval numbers lower than FUBO’s.
Steven Chu was known to be an extremist ideologue at the time Obama appointed him. With, of course, absolutely no real executive or business experience, and no common sense.
A typical Obama appointment, like appointing a pederast to be his Safe Schools Czar.
It’s not good money after bad, it’s stolen money after stupid.