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President Obama continues to bash Wall Street bankers yet his administration has gambled billions of taxpayer dollars on now defunct green energy companies. Courtesy AP
How is President Obama’s gambling billions of dollars in taxpayer money on risky, unproven green energy companies like Solyndra any different from the banks who gambled on subprime mortgages?
In fact, the Obama administration gambled taxpayer money on several green companies who have subsequently filed bankruptcy. By now everyone has hear about Solyndra receiving $535 million and filing bankruptcy less than two years later. Evergreen Solar also received millions of dollars in taxpayer assistance to manufacture photovoltaic cells and is now defunct.
According to a report by Fox News, SpectraWatt received $500,000 in stimulus funds as part of a grant from the National Renewable Energy Lab. The company cited heavy competition from Chinese manufacturers as the reason for their failure. One of the major reasons American companies cannot compete with Chinese manufacturing firms is that we have the highest corporate tax rate in the world.
Now the Obama administration, who admonished Wall Street Banks, and instituted sweeping new financial regulations because of their supposedly reckless lending practices is doubling down on their own reckless lending policy to green companies.
That’s right; earlier this summer the Obama administration just issued nearly $2 billion in taxpayer backed loan guarantees to Next Era and Abengoa for solar projects. Furthermore, Energy Secretary Stephen Chu has issued over $1 billion in taxpayer money to Tonopah Solar and Mesquite Solar. Tonopah Solar has drawn criticism because former Enron executive Tom Georgis is now an executive with Tonopah.
I compared the Obama Administration to Enron back in September when they were caught cooking the books when reporting economic numbers such as GDP, jobs, and inflation. Now it appears that President Obama is redefining corruption by giving billions of dollars of taxpayer money green companies who just happened to be large donors to his campaign and the DNC.
In April of 2010, President Obama gave a speech at Cooper Union where he said we need to enact a set of updated common sense rules to ensure accountability on Wall Street and protect consumers.” Well Mr. President; if Wall Street has to be accountable, shouldn’t you?
PS: I might add that the government backed Fannie Mae & Freddie Mac issued more subprime mortgages than any other lending institution. Just in case you were wondering…
