Solyndra and goverment smoke and mirrors

First off, American based solar companies will not succeed because they can't compete with the Chinese.

I would also like to note, CNN hasn't run a story on Solyndra in 3 or 4 days.

So they all take the 5th, a predictable outcome but what toasts my bread is the following statements:

First it is established that the 500M loan was "restructured" (by the Obama administration) to pay the private investors off first, as opposed to the taxpayers, in case of bankruptcy or default in clear violation of economic stimulus law.

BUT
Deputy energy sec. Daniel Poneman (squidmo in my mind) sez that "the restructuring was entirely legal" because he was looking out for the taxpayers best interests by giving the company a better chance to succeed.

I mean... what is the response to such obviously self serving idiocy?  This has to be criminal.  If it isn't, then it should be.  I hope people wake up to the idea that criminals, in suits or in tats, need to be punished to the point of deterrence.

I propose that on the day the state of the union address is made, they hang the top 5 white collar crime criminals on the front lawn of the white house.  It should be a festive atmosphere with treats for the kids and weak beer for the adults.  Perhaps vendors can sell tiny nooses with the most vilified character dangling on the end.  Maddoff on a stick, Bouncing Bernie.

http://www.foxnews.com/politics/2011/09/23/solyndra-execs-plead-fifth-at-congressional-hearing-more-than-dozen-times/#content

Update:  10/7/2011 This describes the "Federal Financing Bank" which is ripe for abuse (or squeezed dry from abuse)
 http://www.foxbusiness.com/markets/2011/10/06/treasury-bank-behind-solyndra-and-mortgage-bailouts

They start with an Obama quote ""We are not going to be duplicating the kind of system that they have in China where they are basically state-run banks giving money to state-run companies and ignoring losses and ignoring, you know, bad management." 

 Then the article points out that we DO have a state run bank that props up private ventures, and in the case of the Solyndra loan, the private investors get paid back before this "bank".

This is the type of corruption in the system that should be front page news every day until it is exposed and corrected.

Update 10/13/11 another company in the same situation:
http://www.foxbusiness.com/markets/2011/10/12/dept-energys-sunpower-loan-guarantee-under-fire

Update 10/14/11 the actual structure of the loan being called into question by  Republicans on the House Energy and Commerce oversight subcommittee.


Gary Burner, chief financial officer of the Treasury Federal Financing Bank responsible for the loan and a 28-year veteran of the Treasury Department, said he's never heard of a case where private money was prioritized ahead of taxpayer money in a loan.

The GOP lawmakers cited other emails showing that Mary Miller, an assistant treasury secretary, said the restructuring deal could violate the law because it put investors' interests ahead of taxpayers.

Read more: http://www.foxnews.com/politics/2011/10/14/house-panel-looks-at-solyndra-loan-restructuring/

What I would like to see is the head of the FFB questioned by a senate investigative committee about where FFB money goes.

Update:10/18/2011
So here we are, Solyndra has been dropped from the mainstream media but here's a tidbit i found in the backwaters of fox with 3, count em 3, comments ... that were made by advertising bots or paid comments for gold , stocks, and get rich quick schemes.


Apparently some Delaware judge decided that ``I think it's clear this case does not rise to the level of failure to disclose that would mandate appointment of trustee,''
So the fact the the top management all takes the 5th doesn't raise a flag for any one?
They are going to continue to let these people run the company on our dollars without oversight?
I have no proper words to reflect my dismay at how rotted our government has become.

Read more: http://www.foxbusiness.com/industries/2011/10/17/court-refuses-to-replace-solyndra-management

UPDATE 11/27/11
I have been following the story still, but just saw the same stuff rehashed until this moment when Chu is taken to task
 Chu takes the fall

Re: the loan structure Chu says:
he Energy Department faced a difficult decision in late 2010 and early this year, Chu said: Force Solyndra into immediate bankruptcy or restructure the loan guarantee to allow the company to accept emergency financing that would be paid back first if the company was still unable to recover. 

"Immediate bankruptcy meant a 100 percent certainty of default, with an unfinished plant as collateral. Restructuring improved the chance of recovering taxpayer money by giving the company a fighting chance at success," Chu said in his written testimony. 

Although both options involved significant uncertainty, Chu said he made the judgment that restructuring was the better option to recover the maximum amount of the government's loan. The decision also meant continued employment for the company's approximately 1,100 workers, he said. 

Chu said it was worth noting that U.S. taxpayers remain first in line for repayment of the initial loan and noted that private groups invested nearly $1 billion in the company.

Read more: http://www.foxnews.com/politics/2011/11/17/chu-energy-department-loan-decisions-were-mine

So, what a mess to figure out.  Stinks to high heaven to me.  I have no idea how prolonging failure can be a positive thing.  I would be especially irked if i was one of the managers (out of the loop) and told to hire a bunch of peeps only to lay them of in a few months time.  Even worse if it's just to set the stage for a dog and pony show.

Update 2/22/12
The Delaware judge is back.....
http://www.foxnews.com/politics/2012/02/22/bankruptcy-judge-approves-solyndra-bonuses
the link name says it all.
Update 7/20/12
The energy dept loses more money:
http://nation.foxnews.com/stimulus-money/2012/07/20/obama-energy-department-can-t-locate-500000-stimulus-money