The PLAN

[spence]

Originally Posted by scottw

“The facility was producing the product it said it would produce, and consumers were buying the product,” he said. “The company struggled because the market has changed dramatically.”

HUH?

Huh? The problem was that the company couldn't compete because the Chinese Government is subsidizing domestic production to keep the market saturated with cheaper product.

The problem here is just like when a company tries to incubate a new technology. They usually all fail at first, but if kept afloat some will become strong enough to swim on their own. Most of this will happen naturally in the market, but what about strategic industries?

Cutting taxes isn't the solution...we need education and focused incentive.

-spence

[scottw]

Originally Posted by spence

Huh? The problem was that the company couldn't compete because the Chinese Government -spence

it's Bush...it's the Chinese...it's Bad Luck...it's earthquakes, tsunamis and hurricanes...it's "Typical White People", it's the Tea Party.....Global Warming....Global Cooling....Sarah Palin....those RELIGEOUS(except Muslim radicals) people....the rich(except the ones that donate to and support Obama but don't pay their taxes).........it's always someone or something else and it's getting really...really tiresome

are Chinese Government subsidies responsible for these too?

"Last week Obama toured to much fanfare a Johnson Controls plant in Michigan where $300 million in conservation grants produced 150 jobs — at a cost of $2 million per position."

Evergreen Solar Inc is a "Massachusetts company that the White House once said 'is hoping to hire 90 to 100 people' thanks to stimulus money has $485.6 million in debt. Evergreen closed a factory in March, reports the Boston Herald, and cut 800 jobs. A Michigan plant is to be shut down, as well, causing the loss of even more jobs."

"Green Vehicles of Salinas, Calif., which has burned through more than $500,000 in money 'invested' by the city, folded last month without having produced anything of significance. The company promised it would employ about 70 and pay back Salinas taxpayers with $700,000 a year in city taxes."

In Seattle, "a $20 million federal grant for home weatherization has, according to KOMO news, retrofitted only three houses and created 14 jobs in more than a year."

Green Bus Biz Fails: Government Planners Pick a Loser … and Stick With It By Tom Gantert | Aug. 1, 2011

Fisher CoachWorks was a Michigan hybrid vehicle “green” start-up company that the state hoped to claim as one of the “success stories” for the state’s premier economic development program. Former Gov. Jennifer Granholm championed the company in a September 2009 news release, saying it was part of Michigan’s “new energy” economy. Some estimates showed that it would create 530-plus jobs.

Instead, the Michigan Economic Development Corporation lost taxpayers $1.6 million on the deal, but not until after an organization-wide effort to save the company.

Six months after the governor publicly praised Fisher, a Feb. 15, 2010, MEDC memo stated that Fisher CoachWorks had failed to meet two performance “milestones” as part of its $2.6 million total loan agreement with the state. The memo asserted that if the MEDC didn’t give Fisher CoachWorks the $1 million remaining from the initial loan deal and then allow it to change its benchmarks, then “the company will most probably be dissolved.”

On March 15, 2010, Fisher sent an email to the MEDC notifying it of plans to shut down and lay off all of their employees. The announcement that the company was going down set off a flurry of MEDC activity to try to find the company some money.

Leslie Smith, then MEDC’s director of business acceleration, wrote in a March 29, 2010, email, “I’m pulling together all of the forces of MEDC” to help find a way to salvage Fisher CoachWorks.

According to one staff email dated April 9, 2010, the MEDC tried to convince the Flint Mass Transit Authority to give $2.2 million of its federal stimulus “development” money to Fisher CoachWorks.

there are more too


wait...forgot Europe

Obama blames Europe for his Green Jobs failure
byConn Carroll Senior Editorial Writer
Follow on Twitter:@conncarroll

President Obama is blaming cuts in European solar power subsidies for his administration's half-a-billion dollar bad bet on a failed green collar California firm.

What????...I thought it was the Chinese Government Subsidies that were to blame...it's the lack of European Government Subsidies now....he should just BLAME THE WORLD

[scottw]

Originally Posted by spence

Huh? The problem was that the company couldn't compete because the Chinese Government
-spence

maybe this was the problem

The Government Accountability Office would later single out the Solyndra deal as an example of the government’s failing to fully vet such arrangements before approving the loan guarantees. With all those stimulus dollars burning a hole in its pocket, the Obama administration was overeager to get them spent. “If you don’t have really strong processes in place, and if you’re under pressure to get a lot of these dollars allocated, you can make unproductive decisions and ones that ultimately put taxpayers’ dollars at risk,” GAO analyst Franklin Rusco said. In fact, the administration announced its commitment to the loan guarantees before the required outside reviews were even in hand.

[spence]

Originally Posted by scottw

maybe this was the problem

The Government Accountability Office would later single out the Solyndra deal as an example of the government’s failing to fully vet such arrangements before approving the loan guarantees. With all those stimulus dollars burning a hole in its pocket, the Obama administration was overeager to get them spent. “If you don’t have really strong processes in place, and if you’re under pressure to get a lot of these dollars allocated, you can make unproductive decisions and ones that ultimately put taxpayers’ dollars at risk,” GAO analyst Franklin Rusco said. In fact, the administration announced its commitment to the loan guarantees before the required outside reviews were even in hand.

That's a different issue.

It's fine to argue due diligence wasn't done, but that's not necessarily why the company folded.

-spence

[scottw]

Originally Posted by spence

That's a different issue.

It's fine to argue due diligence wasn't done, but that's not necessarily why the company folded.

-spence

due dilligence not being done often results in things folding

it all relates to the same issue and in particular, this issue...."unproductive decisions and ones that ultimately put taxpayers’ dollars at risk" through foolish Government Subsidies that don't pan out because coincidentally, too many Chinese Government Subsidies and not enough European Government subsidies, bad business plan hastily funded thanks to campaign donation paybacks....sounds like a complete failure for Government Subsidies...who would have thunk it? the only entity that made out on this deal was the Obama Election Fund

[spence]

Originally Posted by scottw

due dilligence not being done often results in things folding

it all relates to the same issue and in particular, this issue...."unproductive decisions and ones that ultimately put taxpayers’ dollars at risk" through foolish Government Subsidies that don't pan out because coincidentally, too many Chinese Government Subsidies and not enough European Government subsidies, bad business plan hastily funded thanks to campaign donation paybacks....sounds like a complete failure for Government Subsidies...who would have thunk it? the only entity that made out on this deal was the Obama Election Fund

You're making a lot of assumptions.

-spence

[scottw]

Originally Posted by spence

You're making a lot of assumptions.

-spence

here's some more assumptions for ya....

Beyond the pressure the White House put on the Department of Energy and OMB to expedite the loan, it is coming to light that solar industry analysts were always skeptical of the company's business plan.

ABC News:

While Energy Department officials steadfastly vouched for Solyndra -- even after an earlier round of layoffs raised eyebrows -- other federal agencies and industry analysts for months questioned the viability of the company. Peter Lynch, a longtime solar industry analyst, told ABC News the company's fate should have been obvious from the start.

"Here's the bottom line," Lynch said. "It costs them $6 to make a unit. They're selling it for $3. In order to be competitive today, they have to sell it for between $1.5 and $2. That is not a viable business plan."

Other flags have been raised about how the Energy Department pushed the deal forward. The Center for Public Integrity's iWatch News and ABC disclosed that Energy Department officials announced the support for Solyndra even before final marketing and legal reviews were in. To government auditors, that move raised questions about just how fully the department vetted the deal -- and assessed its risk to taxpayers -- before signing off.

[Piscator]

Originally Posted by spence

Cutting taxes isn't the solution...we need education and focused incentive.

-spence

We need to stop spending all this money we don't have. The bottom line is we need to cut spending and unfortunately, (and I really hate to say this) increase taxes in some form or another. Cutting spending will help reduce the deficit. If we only reduce the deficient, we then have a larger debt issue to deal with…….I can’t believe I’m saying this but due to the irresponsible spending of this administration, the only way to get out on this hole is cut spending and have some sort of tax increase (and not just on the “rich”) to get us back on track………….

[justplugit]

Originally Posted by Piscator

We need to stop spending all this money we don't have. The bottom line is we need to cut spending and unfortunately, (and I really hate to say this) increase taxes in some form or another.

Ya, hate to admit it but I have been thinking the same thing recently.
Cutting spending and raising taxes could bring both parties in Congress something
to bring them closer to action.

In a better economy it would be a no brainer, but in this economy
raising taxes is a two sided sword.

Iv'e got a feeling Obama will want to spend big now and raise taxes too.

[JohnR]

Originally Posted by justplugit

Ya, hate to admit it but I have been thinking the same thing recently.
Cutting spending and raising taxes could bring both parties in Congress something
to bring them closer to action.

In a better economy it would be a no brainer, but in this economy
raising taxes is a two sided sword.

Iv'e got a feeling Obama will want to spend big now and raise taxes too.

There is a place for raising taxes but it is after cutting spending and growing jobs. The problem is that Guvmint only knows how to spend, they don't know how to save.

The argument that sometimes you need to borrow more money than you take in to spur growth and get through bad times is valid but there needs to be a time when you cut costs and pay off some of that largess. Our deficit is forecast to be double out GDP during our lifetime. During WWII it was not double GDP. The politicians spending and promises of the last 30 years has gotten us here.

[justplugit]

Originally Posted by JohnR

There is a place for raising taxes but it is after cutting spending and growing jobs. The problem is that Guvmint only knows how to spend, they don't know how to save.

Yup, the key word being AFTER.

[justplugit]

WTH, Obama is afraid football will pre-empt his top secret
plan and now it will be given in increments?