Obama touted solar technology company files for bankruptcy
But not before sucking down over half a billion dollars in federal loan guarantees that will now be exercised.
Solyndra was touted by the Obama administration as a prime example of how green technology could deliver jobs. The President visited the facility in May of last year and said "it is just a testament to American ingenuity and dynamism and the fact that we continue to have the best universities in the world, the best technology in the world, and most importantly the best workers in the world. And you guys all represent that. "
The federal government offered $535 million in low cost loan guarantees from the Department of Energy. NBC Bay Area has contacted the White House asking for a statement.
This is what happens when government tries to pick winners and losers economically with absolutely no understanding of the market in which they intrude. What this clearly points out, unless there was true malfeasance by the company, is there is no market, at this time, for what they were selling. Either that, or they were truly incompetent.
This was a “if we build it they will buy” project that apparently either misrepresented the market or misunderstood it. Either way, it failed. And the Feds were apparently no more informed about the market potential of the product than the company. Result – over half a billion in loans guaranteed by the Federal government are now being called in. The taxpayer, as usual, is on the hook to pay off the mistake the government made.
One of the constant themes here is the government is way outside its charter when it engages in activities like this. It is an example of what those Tea Party lunatics mean when they talk about government intrusion and call for smaller government. Note, it has nothing to do with welfare reform or any other of the usual nonsense their opponents try to tag them with. It has to do with out-of-control government and out-of-control spending in areas where none of the founders ever even hinted at envisioning a Federal presence.
It’s a pity this has to be constantly pointed out to Tea Party critics bent on stereotyping members of that group as racists. But as usual, reality provides the perfect context and example to counter their baseless charges.
This is not what our government should be involved in, period. And certainly not with tax payers money, exclamation point!