I’ve been absent from the blog for a number of days. Two reasons, really. 1) My business has required significantly more attention due to the crappy local/regional/national economy, my Charter School, DAPSS, has just opened, the Pete du Pont Freedom Award implementation, and some other stuff, and 2) Pretty much everything that this blog has forecast about the economy, about “green energy”, about Delaware government, etc. has come true (Which is why the extreme left has been getting angrier and angrier — cognitive dissonance will only take you so far.).
In short, between being busy actually getting things done (unlike most of our governments), I haven’t had time nor interest in restating the obvious for the umpteenth time.
But, with the ABC story on Solyndra, I couldn’t help but wonder… When will Governor Markell’s foray into “green energy” venture capital investing fail? Between Fiskers & Bloom energy, the State has made some big, risky bets with taxpayer money. Claw back provisions? If you’re bankrupt, there is nothing to claw back. Easy for the cash-receiving entity to agree to, but the taxpayer is carrying all the risk.
What does CNN Money have to say about Fiskers?
Fisker just started delivering its plug-in hybrid sports car, the Karma, to its first customers in recent weeks. The car’s launch was delayed by almost two years, and Fisker had previously claimed that it would become profitable by 2011, which is not likely to happen now considering the delays. But Fisker also has been rumored to be planning to go public, and if the company files an S-1, we’ll see its financials soon enough. If Fisker has a successful IPO, and keeps its stock price up high enough for long enough (beyond the 180-day usual lock up period) it could deliver its investors returns.
The conclusion to get to positive investor returns is a pretty difficult road with about 4 major ‘ifs’. (Except, of course, if BMW owns you. On Sept 1, BMW announced that it was providing a 4 cylinder engine to the “battery” powered Fisker. Gosh, I missed that story in the local papers).
Overall, these investments are called crony capitalism, & as ABC infers, it stinks of corruption (With that, I’m shocked, shocked at the Vice President’s participation)…