2011 in Review: Solyndra Shows ‘Green’ Bubble Bursting
(This commentary was written after the collapse of Solyndra. It is re-posted here for your reading and enjoyment.)
Here is an excerpt from washingtonpost.com about the failed California solar energy company Solyndra that closed after receiving $535 million in federal loan guarantees:
‘“Solyndra’s revenues grew from $6 million in 2008 to $100 million in 2009 to $140 million in 2010,” (CEO Brian) Harrison wrote. “For 2011, revenues are projected to nearly double again.”’
So it certainly seems that Solyndra was doing well.
But this quote – “For 2011, revenues are projected to nearly double again” – is the type of optimism that all CEOs express. This is how they get investment capital, by saying that everything is wonderful.
The big question, however, is: Where was the scrutiny of this claim? If Solyndra was such a great company, why did the government have to fund it? Where were the private investors?
The answer to that question goes back to the previous paragraph in the Post story:
‘An Energy Department spokesman said the agency was unaware that Solyndra sales projections, part of the justification for the new factory, had been too rosy.’
In other words, private investors somehow saw through to the truth about Solyndra while government did not. Gee, where were all the wealthy ultra-liberal solar enthusiasts in Follywood who should have been more than eager to invest in such a successful enterprise as Solyndra?
Answer: Solar energy never attracts private capital. Because solar energy is an economic fraud and everyone knows it.
In fact any profits at these solar energy companies come out of the pockets of taxpayers to start, through government subsidies to install solar panels. Otherwise no solar energy company would exist.
And so it is no surprise that a firm like Solyndra then goes to the same government for new investment capital that it depended on for its profits.
Then when Solyndra executives appeared before a congressional panel seeking to discover what had happened to the $535 million in government-backed loans that disappeared in less than two years, they repeatedly took the Fifth Amendment.
‘Taking the Fifth’ long has been a tactic of crime bosses and corrupt government officials. But for these Solyndra executives to repeatedly take the Fifth is very disturbing. Because they obviously know what happened to the cash but are not saying or volunteering anything. Because by spilling the beans they would not only endanger themselves legally – and physically, rest assured – but they would be exposing many people in the Obama administration to investigation along with other powerful Democrats.
Because after operating in the Democrat circles that you must operate in in order to get these types of loans, these Solyndra officials know what happens to people who squeal on Democrats. And it is not a pretty picture.
‘Former employees of Solyndra… said they saw questionable spending by management almost as soon as a federal agency approved a $535 million government-backed loan for the start-up.
A new factory built with public money boasted a gleaming conference room with glass walls that, with the flip of a switch, turned a smoky gray to conceal the room’s occupants. Hastily purchased state-of-the-art equipment ended up being sold for pennies on the dollar, still in its plastic wrap, employees said.’
Yes, wonderful. A big new building when there are thousands of vacant buildings in California as a result of the recession. Wild spending. State of the art facilities. And for what?
For solar energy, which never has turned one single penny of genuine profit in the history of the world. Never. Anywhere.
Indeed. This is called Environmentalist Math. It means that the government creates your profits, and that your product does not.
This whole story is more evidence that the solar energy “bubble” in the American economy is finally bursting. As big firms go broke, watch your local newspaper as local companies quietly go out of business too. Because solar energy only exists with government subsidies. And the poor fiscal condition of many local and state governments, along with massive federal debt, is starting to shut down the solar gravy train just as we conservatives warned. Ditto windmills.
Here is more from the Post:
‘With the loan guarantee in hand, Solyndra built a second, seven-acre factory with 19 loading docks. As part of the expansion, Gronet and fellow managers hoped to cut costs by speeding up the automated assembly. To do so, they bought a custom-made assembly tool from VDL, a Dutch company. The company had never built that kind of equipment, but it promised the assembly tool would arrive in the summer of 2010. By that time, Gronet had been pushed out as chief executive. Workers told The Post in interviews that they were shocked that summer when Harrison, newly installed as CEO, told them that sales projections used to justify the new factory to federal agencies had been far too optimistic.’
And here’s the kicker:
‘The leading investors in Solyndra were two investment funds with ties to George B. Kaiser, a major campaign fundraising “bundler” for Obama.’
See what Obama is doing with your money? He is giving it to his cronies, just as he did with $800 billion in “stimulus” funds that produced zero economic growth but enriched Democrats and labor unions from coast to coast. And some of that graft is being re-invested back into operations like Solyndra.
And it is not just the usual graft and fraud, but now it is dressed up as planet-saving “solar energy”.
What a farce. And now that ‘green energy’ bubble is bursting. Just like we conservatives said it would.
Please visit my blog at www.nikitas3.com for more conservative insights.