Would You Trust These People With Your Investment Portfolio ?

Yesterday the Daily Caller posted an article about the investments the Obama Administration has made in alternative energy companies.

The article reports:

The Romney campaign later clarified that he was talking about the DOE’s 1705 loan program which doled out $16.1 billion to green energy companies, accordingto the Washington Post. Of the 33 companies that received 1705 loan guarantees, only three have declared bankruptcy.

The article further reports:

The blog Green Corruption’s “Obama green-energy failure” list contains 23 bankrupt and 27 troubled green energy companies which were backed by the federal government. This list uses data compiled by the Heritage Foundation, but also includes some things the conservative think tank doesn’t.

According to the Heritage Foundation, $80 billion was set aside in the 2009 stimulus package for clean energy loans, grants, and tax credits, and 10 percent of these funds have gone to companies that have filed for bankruptcy or are in dire straits.

As I have said before, I believe there will come a day when green energy makes sense. I also believe that day will come after the free market has culled out the technologies that do not work and the technologies that do work have naturally risen to the top of the pile. Government subsidies interfere with that process and actually slow down the successful development of green energy–not to mention the amount of money the government has lost in picking winners and losers (mostly losers).

As taxpayers, we have the right to invest our money where we chose to invest it. There is nothing in the Constitution that gives the government the right to make investments in green energy for us.

 

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Another Taxpayer Subsidized Solar Energy Company Goes Under

Today’s Daily Caller posted an article about Abound Solar, a Colorado green-energy firm that has filed for Chapter 7 Bankruptcy.

The article reports:

The U.S. Department of Energy awarded Abound Solar a $400 million loan guarantee in December 2010, funds that the then-three-year-old startup said it would use to compete with solar panel industry leader First Solar.

The company spent $535 million in loans guaranteed by the federal government before it failed. The article goes on to explain that Abound Solar was technically behind its competitors in the solar industry. Subsidizing inferior technology does not improve its quality, and it interferes with the ability of the free market to let the best technology prevail.

The best stimulus program would have been to give all taxpayers half of their income tax back! That would have stimulated the economy.

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Follow The Money On Solar Energy

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Yesterday the Associated Press reported that the Energy Department has approved two loan guarantees worth more than $1 billion for solar energy projects in Nevada and Arizona. These loans were approved under the same program that granted the Solyndra loans–a program that is scheduled to expire on September 30.

The article reports:

Energy Secretary Steven Chu said the department has completed a $737 million loan guarantee to Tonopah Solar Energy for a 110 megawatt solar tower on federal land near Tonopah, Nev., and a $337 million guarantee for Mesquite Solar 1 to develop a 150 megawatt solar plant near Phoenix.

 Fox News reports:

The Obama Administration is giving $737 million to a Tonopah Solar, a subsidiary of California-based SolarReserve. PCG is an investment partner with SolarReserve. Nancy Pelosi’s brother-in-law happens to be the number two man at PCG.

 It gets worse. The Washington Examiner reports:

Despite the Solyndra failure, the Department of Energy continues to provide loan guarantees to solar companies, today giving Tonopah Solar a $737 million loan guarantee for a project in Nevada. Mitchell (Steve Mitchell) serves as a “board participant” for Solar Reserve, the parent company to Tonopah Solar, and his Solar Reserve biography says that he “currently sits on the Boards of Directors of . . . Solyndra” and several other companies. Argonaut, Mitchell’s primary employer, owns 3% of Solar Reserve, according to reports.

The Mitchell connection to Solar Reserve brings George Kaiser into the spotlight with respect to this latest loan guarantee. Kaiser owns Argonaut and thus invested in both Solyndra and Solar Reserve. He also bundled over $50,000 into President Obama’s campaign.

I really hate the idea of another Congressional investigation, but I think we need one on the money the government is giving to ‘green energy’ and who has received the money.

The money given out this week was the last of the money from a renewable energy loan program approved under the 2009 economic stimulus. It seems to me that the money would have been better spent in other areas. This really does look like ‘pay to play’ on the part of the Obama administration.

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