Archive for the ‘Obama Scandles’ Category

Rx: How to start fixing the IRS …

May 20, 2013

OK, here’s my diagnosis – the Dx — and my short-term prescription – the Rx.

First, the Dx …

Of course, the Tea Party and other conservative groups were targeted for political purposes.

Any claim of “efficiency procedures” or “inadvertent error” are simply ridiculous.

Of course,  folks high up the food chain were involved … setting the broad mission (with Mob-like deniability) — “punish your enemies” –- and condoning the actions by failing to stop them them when they became well known.

So, what to do?

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Here is how I’d get started righting the ship … the Rx:

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23 and counting …

November 2, 2012

No, it’s not the number of consecutive weeks that the BLS has under-reported initial unemployment claims … it’s the number of taxpayer-funded green energy companies that have failed so far … another 27 are reported to have very short financial runways..

Would you invest in this venture capitalist’s next fund?

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Source

  1. Solyndra*: Received $535 million DOE loan and $25.1 million in California tax credit. Bankrupt: September 2011
  2. Abound Solar*: Received part of a $60 million grant under the Bush administration, and was awarded a $400 million loan under Obama in December of 2010. Abound was awarded a $9.2-million loan from the Export-Import Bank in July 2011. Bankrupt: June 2012
  3. Beacon Power*: Received more than $25 million in DOE grants and a DOE loan for $43 million. Bankrupt: October 2011
  4. A123 Systems*: Received $390 million, of which $249 million of it was a Recovery Act Grant. Filed for Bankruptcy October 16, 2012, and two companies are seeking to buy A123; Johnson Controls and the Chinese firm Wanxiang Group Corp.
  5. AES Eastern Energy/Energy Storage*: Received $17.1 million DOE conditional commitment on August 2, 2010. Bankrupt: December 31, 2011.
  6. Amonix*: Received $6 million in federal tax credits a $15.6 million grant from the DOE for research and development. Bankrupt: July 18, 2012.
  7. Azure Dynamics*: Received millions in stimulus funds and over $1.7 million in Michigan state tax credits. Bankrupt: March 27, 2012
  8. Babcock & Brown: Received $178 million in the largest federal (1603) stimulus wind grant in December 2009. Placed into voluntary liquidation: March 13, 2009
  9. Energy Conversion Devices Inc./Uni-Solar: Received a $13.3 million Stimulus tax credit. Bankrupt: February 2011.
  10. Ener1*: Received a $118.5 million DOE Stimulus grant. Bankrupt: January 26, 2011.
  11. Evergreen Solar, Inc.*: Received Stimulus funds, grants, tax-credits, low-interest loans and subsidies. Bankrupt: August 15, 2011
  12. Konarka Technologies Inc.: Received $20 million in grants from government agencies such as the DOE and the Pentagon. Bankrupt: June 4, 2012.
  13. ADDITION Range Fuels*: Range Fuels: $162.25 million in government commitments since 2007, of which $64 million came from a USDA Biofuel loan in 2010 alone, despite financial and technical difficulties, and opposition inside the USDA.
  14. Raser Technologies: Received $33 million Treasury Department Stimulus grant. Bankrupt: May 2, 2011.
  15. SpectraWatt*: Received $500,000 grant from the Renewable Energy Lab via the Stimulus. Bankrupt: August 23, 2011
  16. Stirling Energy Systems: Received $7 million from a federal renewable-energy grant and was eligible for nearly $10.5 million in manufacturing September 28, 2011.
  17. Thompson River Power LLC: Received $6.5 million in Stimulus funds from Section 1603. Bankrupt: July 2, 2012.
  18. Mountain Plaza, Inc. ($2 million)
  19. Olsen’s Crop Service and Olsen’s Mills Acquisition Company ($10 million);
  20. Nordic Windpower* ($16 million)
  21. Satcon ($3 million) As reported by the Heritage Foundation October 18, 2012, “A solar company that got a multi-million-dollar grant from the Department of Energy earlier this year announced Wednesday that it will file for Chapter 11 bankruptcy protection, making it the second taxpayer-backed green energy company to file for bankruptcy this week.”
  22.  Willard and Kelsey Solar Group ($700,981) ($6 million); in our unconfirmed bankrupt list
  23. Cardinal Fastener & Specialty Co.: Received $480,000 through the Section 48C Advanced Manufacturing Tax Credit Program. During Obama’s visit to Cardinal Fastener, he took a “green Recovery Act victory lap,” and touted it as means for “Made-In-America Jobs” for Ohio. Yet, just two weeks after the Obama visit, Cardinal laid off 12 percent of its staff, and in June 2011, Cardinal Fastener filed for Chapter 11 bankruptcy protection. Lastly, in January 2012, Cardinal Fastener was acquired by Germany’s Wurth Group for just $3.9 Million.

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Flat-earthers vs. Obama’s pipe dreams …

March 19, 2012

OK, so anybody who wants to keep using fossil fuels, to drill for oil and gas in the U.S., and to buy gas for a couple of bucks per gallon is a member of the flat earth society, lacking the the President’s vision.

Why Obama wants to insult the vast majority of Americans is beyond me, but that’s his tactical choice.

So far, the GOP has simply thrown back softballs: Solyndra, the Volt and the many other alternative energy busts.

Given my lack of tact, if I were a Romney adviser, here’s the line I’d offer up to Mitt:

“President Obama and I both have pipe dreams … mine in the Keystone Pipeline bringing oil from Canada … his goes back to his college days, I guess.”

Two for the price of one.

Keeps focus on the money wasted and lack of results from the President’s alternative energy gambles … and dregs up some old stuff re: Obama’s drug use that got wiped under the carpet in 2008.

Not rumors… straight from the horse’s mouth.

Obama first told of his early drug use in his 1995 memoir, “Dreams from My Father: A Story of Race and Inheritance” … published audaciously just after he became president of the Harvard Law Review.

He wrote re: his personal experience:

“Pot had helped, and booze; maybe a little blow when you could afford it.”

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Picture source:  Coed Magazine,
“10 Most Influential Pot Smokers”

Hmmm.

I guess that I hadn’t thought of the full range of hardships inflicted by the bad economy …

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The Solyndra mess … key points.

September 20, 2011

The AP published a nice summary of the Solyndra fiasco. Here are some highlights …

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Projected Losses

Solyndra was hemorrhaging hundreds of millions of dollars for years before the Obama administration signed off on the original $535 million loan guarantee in September 2009.

The company’s SEC filings outlined losses prior to the loan and said bluntly: “We expect to continue to incur significant operating and net losses and negative cash flow from operations for the foreseeable future.”

“We have incurred significant net losses since our inception, including a net loss of $114.1 million in 2007, $232.1 million in 2008 and $119.8 million in the first nine months of fiscal 2009, and we had an accumulated deficit of $505 million at Oct. 3, 2009,” the company said in a December 2009 filing to the SEC. “We expect to continue to incur significant operating and net losses and negative cash flow from operations for the foreseeable future.”

The DOE brushed off the losses, saying: “Of course start-up companies incur early losses.”

But, the company said: “ … net losses and negative cash flow from operations for the foreseeable future”.

Hard to brush that off.

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Subordination of Gov’t Loan

When Solyndra started imploding earlier this year, “The Obama administration restructured the half-billion dollar federal loan to Solyndra in such a way that private investors — including a fundraiser for President Barack Obama — moved ahead of taxpayers for repayment in case of a default, government records show.

The Administrations defense:

Administration officials defended the loan restructuring, saying that without an infusion of cash earlier this year, solar panel maker Solyndra Inc. would likely have faced immediate bankruptcy, putting more than 1,000 people out of work.

Even with the Administration’s agreement to subordinate the gov’t loan to private creditors, Solyndra filed for Chapter 11 bankruptcy protection a few months later and laid off its 1,100 employees.

Remember the auto bailouts when the Administration subordinated secured creditors beneath the unsecured union obligations?

I guess the new rules are simply that Obama supporters get priority claims in bankruptcy proceedings  …

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Political jitters

Emails show the White House was worried about the likely effect of a default by Solyndra on Obama’s re-election campaign.

“The optics of a Solyndra default will be bad,” an OMB official wrote in a Jan. 31 email to a colleague. “The timing will likely coincide with the 2012 campaign season heating up.”

The budget official, whose name is blacked out in the email, wondered whether Solyndra should be allowed to restructure its loan.

“Questions will be asked as to why the administration made a bad investment, not just once (which could hopefully be explained as part of the challenge of supporting innovative technologies), but twice (which could easily be portrayed as bad judgment, or worse),” the email says.

News flash: even without a 2nd round of money down the rat hole, the gov’t loan guarantees reads through as “bad judgment, or worse”.

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Ken’s big question

Why hasn’t anybody been fired?

If DOE’s head Steven Chu – you know, the Nobel winning scientist —  signed off on this loan guarantee, he should be terminated immediately.

That’s what happens to in private VC firms when a partner loses a half-billion dollars in 18 months on an indefensible investment.

P.S. I don’t think Chu’s Nobel prize was for either oil spill remediation or high tech venture capital work.  If I’m wrong, let me know.

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