Ener1
Jan 27th, 2012 by David Anderson
The Obama stimulus backed electric car company is going into chapter 11 (reorganization not liquidation). I guess 118 million dollars wasn’t enough to put it on its feet. 3 high profile difficulties in 6 months is not good for the PR of new energy.
“3 high profile difficulties in 6 months”
Out of how many loan guarantees, etc.?
What is the default rate for commercial loans? Do you know?
This is why we need a leader like Mitt Romney, who was wise enough to invest in companies like Gazprom, which has made a lot of money developing oil resources in Iran.
” I guess 118 million dollars wasn’t enough to put it on its feet.”
Who would’ve thought??
““3 high profile difficulties in 6 months”
Out of how many loan guarantees, etc.?
What is the default rate for commercial loans? Do you know?
Nitpicker doesn’t have the ability to distinguish between private lenders who truly risk their own hard owned monies and politicians who take our tax dollars to try and pick winners and losers.
In terms of who received the monies the Obama Administration was slow in identifying these companies. The actual stimulus billl did not name individual companies. The companies were selected by the Energy Department. (It is amazing how much money has been doled out to companies whose investors contributed to Obama.)
If Nitpicker wants to get a complete list of all of the renewable companies and the status of their firms, I would be more than happy to see it.
Anyone who thinks there is an overall commercial loan failure rate shows they nothing about commercial finance. Financial institutions and bank regulators rate loans on the basis of the business’ financials and the business sector where they operate. Anyone attempting to compute such a figure when one considers the wide variety of commercial loans in this nation is simply trying to gather a useless statistic to score political points.
No bank or venture capitalist looks for an overall commercial loan failure rate to make a decision. After all this is their money. They look at a wide variety of factors such as the firm’s history, Its financials compared to the rest of the industry, and it’s wealth of capital to sustain the firm during a start up or expansion.
It is documented in the case of Solyndra that none of these criteria were used adequately and in fact that political considerations were paramount and financial considerations. This is not how taxpayer money should be used.
‘
Nobody wants dinky little electric cars with limited range and astronomical costs. Witness the Chevy Volt; 8,000 units sold.
Now, if BO and his minions had their way, they would force us to buy what they want us to drive.
The USSR elite drove high-end luxury cars, and they had the road to themselves. When LBJ was tooling around in a suicide-door Continental, Breznyev was cruising in a pre-war Packard (re-badged as a Zia, of course).
Keep the government out of the car business. They are clueless.
The excuse given was that the demand for electric cars was lower than expected.
My question is: What idiot thought that there’d by any demand for electric cars, particularly one sufficient enough to justify $118M in taxpayer loans.
Anyone checking the cross tabs to see which Ener1 execs are donating our taxpayer money to which Democratic candidates?
The truth is no one with a brain will give their own money to any of these ventures. Liberals however will spend your money on these worthless projects.