Wednesday, September 21, 2011

Solyndra - Worse than it appears

Andrew McCarthy, writing at The National Review -
... If the Solyndra case came walking into a competent prosecutor’s office, the theory of the investigation would be fraud. We have the loss of over half a billion dollars in public money (in the form of government credits), which was pledged to back a company that had a hopelessly flawed business model and that was gushing losses with no realistic prospect of a turn-around. We have grossly misleading rosy-scenario pronouncements by key players (including President Obama and Vice President Biden) at a time when Solyndra backers were gearing up an initial public offering of stock — and when Solyndra’s independent auditors had issued a dire warning that it was doubtful the company could continue as a going concern. In addition, we have executive-branch officials renegotiating the loan arrangement so that corporate insiders, including Obama administration cronies, would be given priority over taxpayers in the liquidation of assets when the company inevitably went belly-up — a novation that appears to be as illegal as it is inexplicable.

On the surface, it appeared to be just a well-connected investor making good use of his network to secure a nice contract. But in fact, we have a well-connected investor making good use of his network to secure a federally subsidized loan that the firm could not have qualified for on its merits.

I don't understand how even conscientious liberals can accept this state of affairs. If they truly despise "crony capitalism," then surely they despise this! Don't they?

Mr. McCarthy's commentary is worth reading. You'll find it here: The Solyndra Non-Investigation

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