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Solyndra - One Of Obama's Stimulus Package Wonder Company Files For Bankruptcy

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http://abcnews.go.com/blogs/politics/2011/08/solar-energy-company-touted-by-obama-goes-bankrupt/

A California solar panel manufacturer which President Obama had made the poster child of his effort to expand the green economy and grow jobs has filed for bankruptcy, the company announced today.

Solyndra said “global economic and solar industry market conditions” forced it to abruptly shutter its Fremont, Calif., factory and immediately layoff more than 1,100 employees.

“Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion,” Solyndra president and CEO Brian Harrison said in a statement. “Raising incremental capital in this environment was not possible. This was an unexpected outcome and is most unfortunate.”

The White House did not immediately respond to ABC News’ requests for comment.

President Obama visited Solyndra in May 2010, heralding the company as “leading the way toward a brighter and more prosperous future.” He also cited it as a success story from the government’s $787 billion economic stimulus package.

Less than a year ago, we were standing on what was an empty lot. But through the Recovery Act, this company received a loan to expand its operations,” Obama said at the time. “This new factory is the result of those loans.”

In 2009, the Obama administration fast-tracked Solyndra’s loan application, later awarding it $535 million in guarantees from the stimulus funds.

An excellent example of how successful govt intervention can be. $0.5bn gone down the drain to produce nothing.

I'd love to know what the money has been spent on, anyone know if the directors have had a nice bonus over the past couple of years for this company?

Still it's only taxpayer money and only a minor failure in a undoubtedly hugely successful stimulus package.

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Governments never learn. There are always those that will relieve them of cash and the government are so desperate to appear to be doing something. Dragon Computers, Delorean cars. Ford used to regularly threaten to die on the government's doorstep unless they got a couple of million to keep going. Then they would close the factory anyway and somehow never pay the money back. MG Rover... it goes on and on.

Still as you say, its only tax payer's money after all.

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Governments never learn. There are always those that will relieve them of cash and the government are so desperate to appear to be doing something. Dragon Computers, Delorean cars. Ford used to regularly threaten to die on the government's doorstep unless they got a couple of million to keep going. Then they would close the factory anyway and somehow never pay the money back. MG Rover... it goes on and on.

Still as you say, its only tax payer's money after all.

So what about Fiat, Renault, VW, GM - all here today as Independent national companies in their respective countries because of government subsidies

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http://market-ticker.org/akcs-www?post=193715

You have to wonder in the case of this wunderkind that went under.

The U.S. Department of Energy is one of the largest creditors in the bankruptcy case, pressing to reclaim a $527 million federal loan. Court papers say an intercreditor agreement ranks the federal loan behind a $69 million loan from lenders led by Argonaut.

That little ditty was buried in the Journal story. Literally one paragraph from the end.

Why is important? Because your money - $527 million of it - has a subordinate position to $70 million in private equity money that preceded it.

Why did the DOE do this? That's a good question.

You'd have to be mad to offer more than seven times the previous financing that the firm secured in a subordinate position, especially when the firm burns through it and blows up in a year!

Or, of course, you might be corrupt.

Pick one OBAMA, because from where I sit this looks like your administration bailed out a private equity fund's bad investment, and I think we the people should know why.

Denniger's take on what's going on.

This company certainly burned through a lot of cash.

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http://www.zerohedge.com/news/watch-history-being-made-solyndra-execs-plead-fifth-confirm-failure-government-stimulus-program

Is this the beginning of the end of Obama, with impeachments and much more to follow? Today's pleading of the 5th amendment by Solyndra execs may be the starting point. Watch the live hearing below.

Excellent executives taking the 5th.

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Still it's only taxpayer money and only a minor failure in a undoubtedly hugely successful stimulus package.

What it's done is add to overcapacity and damage the legitimate solar power manufacturers who have had to compete with the taxpayer purse.

Like housing benefit does for private renters :angry:

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http://www.zerohedge.com/news/next-comes-impeacthment-republians-seek-all-white-house-communication-solyndra-obama-inaugurati

This can not be good for a president already mired in 20% real unemployment and 98.9% Debt to GDP: “Nearly eight months into our investigation, documents provided to the Committee last Friday confirm those closest to the President - top advisors like Valerie Jarrett, Larry Summers, and Ron Klain - had direct involvement in the Solyndra mess. In addition to the cast of West Wing characters with access to the Oval Office, documents reveal a startlingly cozy relationship between wealthy donors and the President’s confidantes, especially in matters related to Solyndra. While the President claims ‘hindsight is always 20/20’ and the loan went ‘through the regular review process,’ the facts tell a much different story with some of the loudest alarm bells on Solyndra’s viability coming from within his very own administration.” Next up: "please define the term 'crony venture capital taxpayer funded loan." Also, stories like this can not help.

Just released by the House Energy And Commerce Committee

Recently Provided Documents Reveal President’s Inner Circle Voiced Concern with Solyndra, Wealthy Campaign Donors Had Direct Line to West Wing

Energy and Commerce Committee Chairman Fred Upton (R-MI) and Oversight and Investigations Subcommittee Chairman Cliff Stearns (R-FL) are seeking all communications between White House staff and officials regarding now-bankrupt Solyndra’s $535 million loan guarantee. The Committee leaders have requested all documents dating back to President Obama’s inauguration on January 20, 2009. Recently produced documents reveal the President’s closest confidantes closely monitored the Solyndra loan and wealthy donors also weighed in on Solyndra to those officials closest to the Oval Office.

Looks like this story just keeps on giving, although an investigation of this mess will clearly be on the Republican agenda especially with an election coming up.

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Surely McBust must have paid them a visit?

Same disease both sides of the pond, excesses of cronyism and corporatism and a bought and paid for political process and "democracy."

Edited by John Steed

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http://market-ticker...www?post=193715

Denniger's take on what's going on.

This company certainly burned through a lot of cash.

Once they're done making a fuss about $500m wasted on new energies they can start looking into the $700bn given to tattoo parlours and similar businesses by the Republican Congress.

Cheeky buggers.

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Surely McBust must have paid them a visit?

Same disease both sides of the pond, excesses of cronyism and corporatism and a bought and paid for political process and "democracy."

It was the Lord of Darkness who specialised in crony-loans to selected companies here.

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  • 276 Brexit, House prices and Summer 2020

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