Democrats’ Unhappy Solyndra Anniversary

August 31, 2012

Democrats’ Unhappy Solyndra Anniversary

A Year to the Day Democrats’ Stimulus Poster Child Went Bankrupt and Left Taxpayers on the Hook for Millions, Democrats Remain Unapologetic

Today marks a year to the day Democrats’ stimulus poster-child Solyndra went bankrupt—a sad reminder of the unfulfilled promises in Democrats’ failed stimulus.
Yet Democrats remain unapologetic for their failed gamble on a politically-connected company that experts always warned was a bad investment for taxpayers. Making matters worse is the fact that Solyndra’s bankruptcy was only the first of many for the Democrats’ green casino.
Instead of helping green energy, the Obama stimulus actually hurt the very companies it pledged to help. Solyndra’s bankruptcy is an instructive lesson in the pitfalls of Democrats’ big government approach to job creation, if only Democrats were willing to listen.

Today marks a year to the day Democrats’ stimulus poster-child Solyndra went bankrupt—a sad reminder of the unfulfilled promises in Democrats’ failed stimulus:

AUGUST 31, 2011: SOLYNDRA FILES FOR CHAPTER 11 BANKRUPTCY, FIRES 1,100 WORKERS:(“Missed Warning Signs: A Solyndra Timeline,” The Center for Public Integrity, 9/13/2011)

MAY 26, 2010: OBAMA CITED SOLYNDRA AS EVIDENCE OF THE “PROMISE OF CLEAN ENERGY”: (“Remarks by the President on the Economy,” The White House, 5/26/2010)

MORE: “COMPANIES LIKE SOLYNDRA ARE LEADING THE WAY TOWARD A BRIGHTER AND MORE PROSPEROUS FUTURE”: (“Remarks by the President on the Economy,” The White House, 5/26/2010)

SEPTEMBER 4, 2009: VICE PRESIDENT JOE BIDEN ANNOUNCED LOAN GUARANTEE FOR SOLYNDRA CITING PROMISES OF NEW JOBS: “By investing in the infrastructure and technology of the future, we are not only creating jobs today, but laying the foundation for long-term growth in the 21st-century economy.” (Press Release, “Vice President Biden Announces Finalized $535 Million Loan Guarantee for Solyndra,” The White House, 9/4/2009)

SOLYNDRA INVESTOR: “WHILE THAT’S GOOD FOR US, I CAN’T IMAGINE IT’S A GOOD WAY FOR THE GOVERNMENT TO USE TAXPAYER MONEY”: “But privately, at least one investor was concerned, writing in an email that while Solyndra won a loan of more than $500 million, it had revenues of less than $100 million and wasn’t yet profitable: ‘… while that’s good for us, I can’t imagine it’s a good way for the government to use taxpayer money…’” (Jim McElhatton, “Emails: Solyndra Took Sales Pitch Directly to Obama,” The Washington Times, 8/2/2012)

PRICE TAG FOR FAILED STIMULUS: $833 BILLION: (Congressional Budget Office, 8/23/2012)

Yet Democrats remain unapologetic for their failed gamble on a politically-connected company that experts always warned was a bad investment for taxpayers. Making matters worse is the fact that Solyndra’s bankruptcy was only the first of many for the Democrats’ green casino:

“[A]GAIN AND AGAIN, THE OBAMA ADMINISTRATION PRESSED FORTH IN SUPPORT OF SOLYNDRA IN THE FACE OF GLARING WARNING SIGNS SENT UP FROM EVEN ITS OWN STAFFERS”:(Ronnie Greene And Matthew Mosk, “Obama Administration Agreed To Solyndra Loan Days After Insiders Foresaw Firm’s Failure,” iWatch News, 9/14/2011)

DEMOCRATS HAVE REFUSED TO APOLOGIZE FOR THEIR SOLYNDRA DISASTER:

ENERGY AND COMMERCE RANKING DEMOCRAT HENRY WAXMAN (D-CA): SORRY I’M NOT SORRY ABOUT FUNDING SOLYNDRA: “I’m sorry Solyndra happened. We lost $500 million dollars. That’s a shame, but that’s why loan guarantees are provided. Because these are risky enterprises, and not all of them are going to succeed.” (Remarks from Henry Waxman, Energy and Commerce Hearing, 7/12/2012)

STIMULUS LOAN CHIEF: PROGRAM THAT FUNDED SOLYNDRA IS “AN ENORMOUS SUCCESS”: “Loan Chief Frantz: ‘Quite to the contrary, sir, I think it’s been an enormous success.’” (House Energy and Commerce Hearing, 7/12/2012)

OBAMA SAID STIMULUS WAS INTENDED TO “TAKE BETS” ON NOW-BANKRUPT COMPANIES LIKE SOLYNDRA: “But that’s exactly what the loan guarantee program was designed by Congress to do, was to take bets on these areas where we need to make sure that we’re maintaining our lead.” (“News Conference by the President,” The White House, 10/6/2011)

DEMOCRATS MAKING NO APOLOGIES FOR SOLYNDRA LOAN THAT LOST $535 MILLION IN TAXPAYER FUNDS: “Energy Secretary Steven Chu on Thursday declined an opportunity to issue a direct apology for Solyndra.” (Darren Samuelsohn, “Steven Chu: No Apologies on Solyndra,” Politico, 11/17/2011)

STIMULUS WEBSITE STILL PORTRAYS SOLYNDRA AS A NET JOB CREATOR: (“Estimated Jobs by Quarter,” Recovery.gov, Accessed 8/31/2012)

BUT SOLYNDRA WAS JUST THE BEGINNING:

THE ATLANTIC: “ANOTHER SOLYNDRA IN THE MAKING?”: (Jordan Weissman, “Another Solyndra in the Making?”, The Atlantic, 7/9/2012)

A123 SYSTEMS RECEIVED $249 MILLION STIMULUS LOAN GRANT, NOW HAS ONLY FIVE MONTHS OF CASH LEFT: “On Friday, advanced battery maker A123 Systems, the recipient of a $249 million federal stimulus grant, informed investors that it had just five months worth of cash left to fund itself. While it’s a bit early to start administering last rites, the company’s situation is looking pretty funereal. A123’s share price is down to just about $1 from an all-time high of more than $25 in 2009. Management has plans to raise $39 million, in part by selling stock. But at least one analyst quoted by the Boston Globe believes they’ll need an infusion of at least $400 million over the next 18-months.” (Jordan Weissman, “Another Solyndra in the Making?”, The Atlantic, 7/9/2012)

“ANOTHER SOLYNDRA? DOE LOAN RECIPIENT [ABOUND SOLAR] CLOSING”: (Andrew Restuccia, “Another Solyndra? DOE: Loan Recipient Closing,” Politico, 7/3/2012)

ABOUND SOLAR FILING FOR BANKRUPTCY AFTER GETTING $70 MILLION IN STIMULUS FUNDS: “A solar manufacturing company that received nearly $70 million from the Obama administration is shutting down and filing for bankruptcy protection, the Energy Department said Thursday.

“Abound Solar won approval in 2010 for a $400 million loan guarantee to aid construction of solar manufacturing facilities in Longmont, Colo., and Tipton, Ind. But amid growing problems for domestic solar panel manufacturers, the company began missing milestones laid out by the department in its loan guarantee agreement.” (Andrew Restuccia, “Another Solyndra? DOE: Loan Recipient Closing,” Politico, 7/3/2012)

“THE THIRD DOE-BACKED COMPANY TO DECLARE BANKRUPTCY”: “Abound is the third DOE-backed company to declare bankruptcy. The first was Solyndra last September. Beacon Power, an energy storage company, filed for bankruptcy protection the following month.” (Andrew Restuccia, “Another Solyndra? DOE: Loan Recipient Closing,” Politico, 7/3/2012)

BEACON POWER GOES BANKRUPT AFTER $43 MILLION OBAMA STIMULUS LOAN: (Tom Hals and Roberta Rampton, “Beacon Power Bankrupt; had U.S. backing like Solyndra,” Reuters, 10/31/2011)

OBAMA-BACKED AMONIX LAID OFF 200 WORKERS EARLY THIS YEAR, RECEIVED $5.9 MILLION TAX CREDIT IN 2010: (Neil Munro, “More Solyndra-Style Failure: Obama-tied Amonix Lays Off Most of Company,” The Daily Caller, 1/30/2012)

Instead of helping green energy, the Obama stimulus actually hurt the very companies it pledged to help. Solyndra’s bankruptcy is an instructive lesson in the pitfalls of Democrats’ big government approach to job creation, if only Democrats were willing to listen:

“RATINGS AGENCIES FULLY INFORMED THE DOE” OF RISKS OF “EXCESSIVE GLOBAL COMPETITION”: “The ratings agencies fully informed the DOE of their expectations for falling panel prices due to excessive global competition.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)

DOE SPENT TAXPAYER DOLLARS BACKING “MULTIPLE SOLAR” COMPANIES AND “ADDED TO A HEATED GLOBAL COMPETITION” THAT WAS “ALREADY CREATING AN EXCESSIVE SUPPLY OF SOLAR PANELS”: “DOE should have averted some of the risks it created in its portfolio by diversifying its investments across renewable energy technologies. DOE’s investment in multiple solar manufacturers added to a heated global competition that was already creating an excessive supply of solar panels. These manufacturers were forced to compete both against each other and other solar companies worldwide. As a result, the average selling price per watt for solar panels has continued its decline.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)

A LONG RECORD OF FAILURE:

OBAMA’S DOE LENT $14.5 BILLION OVER 27 PROJECTS, “TURNED A BLIND EYE TO THE RISKS THAT HAVE BEEN GLARINGLY APPARENT”: “By the expiration of § 1705 program in September 2011, the DOE had approved 27 projects totaling more than $14.5 billion in guaranteed loans. Inexplicably, DOE management has turned a blind eye to the risks that have been glaringly apparent since the inception of the program.” (“The Department of Energy’s Disastrous Management of Loan Guarantee Program,” U.S. House of Representatives Committee on Oversight and Government Reform, 3/20/2012)

“REPORT: ENERGY LOANS COULD COST $3B” FROM “HIGH-RISK” GREEN PROGRAMS:(“Report: Energy Loans Could Cost $3B,” Associated Press, 2/10/2012)

STIMULUS CRONY CAPITALISM? WASHINGTON POST AUDIT FOUND $3.9 BILLION IN TAXPAYER MONEY WENT TO “21 COMPANIES WITH CONNECTIONS TO FIVE OBAMA ADMINISTRATION STAFFERS AND ADVISERS”: “During the next three years, the department provided $2.4 billion in public funding to clean-energy companies in which Wagle’s former firm, Vantage Point Venture Partners, had invested, a Washington Post analysis found. Overall, the Post found that $3.9 billion in federal grants and financing flowed to 21 companies backed by firms with connections to five Obama administration staffers and advisers.” (Carol Leonnig and Joe Stephens, “Venture Capitalists Play Key Role in Obama’s Energy Department,” The Washington Post, 2/14/2012)

Democrats and Solyndra’s Unhappy Anniversaryhttp://ow.ly/dnx1a#madeindc