Head of White House Fellowships isn’t the most powerful position in Washington DC, but it probably pays pretty well. Relatively speaking of course.
These sorts of loans are typically vehicles for crony capitalism. Think Solyndra. But in this case the market has already resolved the issue. The plant the taxpayer backed loan is allocated for has already been built. The project was originally financed within the private sector. Why is megacorporation Alcoa now getting a plum loan?
The answer it appears is political. (Isn’t it always?)
This situation just keeps getting weirder.
Ah Solyndra. Was there any part of this endeavor which wasn’t a scam?
One reason is to keep out competition with the help of the state.
The Post doesn’t say or infer that the president did anything he should not have but the smoke coming from Secretary Chu’s office at the DOE is interesting.
The article attached explains how many companies worked the green energy scheme.
Often the recipients of the taxpayer backed loans were not fledgling companies at all. They were subsidiaries of larger, established companies, which should have funded such ventures without help from the taxpayer. However, since these ventures often made little economic sense they let you and me underwrite them.
Congressional Republicans are trying to get at the heart of the Solyndra matter but the White House has not been helpful. Not that this is surprising.
“The initial deadline for producing the requested documents was Feb. 21 and they are still withholding these records,” he added. “The subpoena is now 7 months old and President [Barack] Obama, who promised the most transparent administration in history, continues to thwart the subcommittee’s constitutional responsibility to provide oversight.”
Oh, and what a mess. Turns out George Keiser actually did have a hand in running things at the solar firm. He wanted the government to not only loan the company money at below market rates, he even thought (it is inferred) that it might be a good idea for the government to buy the solar panels Solydra produced at above market rates. Talk about coming and going.
As is often the case with volatile relationships when they end the two no longer speak.
Donald Lambro at the Washington Times reports that there may be more many more bad loans to come.
Former MA governor William Weld has signed on as lobbyist for Solyndra and former Steny Hoyer aide David Ransom has joined to team too. Now how is Solyndra paying for these folks? Guess there’s some more of that taxpayer funded loan laying around.
“That Custom-Tailored Obama Scandal You Ordered Is Finally Here”
The green crony capitalist brigade spoke out yesterday. As clouds gathered over the White House and the now quiet Solyndra factory in California the members of the American Energy Innovation Council made the case for the continued flow of federal tax dollars into green R&D. Perhaps more precisely they called for the continued flow of federal tax dollars to their respective companies.
Brian Ross at ABC reports on his uncovering of some of the White House staff emails regarding the Solyndra deal. It looks like the White House knew fairly early that the loan was a bad idea. Yet they pushed it through.