Green Energy Insiders pocketed most of the Stimulus Money

Posted by PITHOCRATES - November 4th, 2012

Week in Review

According to the Left it’s the Republicans who enrich their friends in corporate America.  But it wasn’t the Republicans that passed a near $1 trillion stimulus bill to enrich their friends in corporate America.  No.  That was the Democrats.  And they really enriched their friends.  Their friends in green energy.  Those corporations that were supposed to create the jobs of the future.  That created no jobs (see Examiner Editorial: Insiders get rich on Obama’s green energy stimulus posted 10/31/2012 on The Examiner).

According to a Washington Examiner analysis of publicly available data, corporate insiders at the 15 publicly traded green energy companies that received federal stimulus subsidies pocketed tens of millions by selling their stock after the government’s money poured in and before their companies’ values plummeted.

The Obama administration gave more than $700 million in grants and guaranteed an additional $500 million in loans to publicly traded green energy companies through its 2009 stimulus package. If Obama had invested all that money in a Standard & Poors index fund of the top 500 publicly traded companies, his investment would have seen a 73 percent return since he took office. In contrast, the Obama “green energy” stimulus portfolio has fallen by 78 percent — performing about five points worse than green energy companies that didn’t get subsidies.

The insider trades by officers and directors of these companies tell us still more. They cashed out a net $63.9 million in stock gains before their companies’ stock prices collapsed…

This analysis does not include some of the best-known Obama energy failures. Solyndra, for example, blew through more than $500 million in taxpayer-guaranteed loans before it could even go public. Another high-profile failure, First Solar, is not included because it sold off much of its $3 billion in federal loan guarantees to third parties before it laid off 30 percent of its workforce and its stock price declined by more than 90 percent from its 2011 high. The company’s head, Michael Ahearn, has extracted more than $329 million in stock sales since 2009 all by himself.

The problem with green energy is that it’s not economically viable.  Few investors put their money in these ventures because investors are smart and know how to invest money wisely.  Which is why the government is pouring money into these companies.  Because no one else will.  For these are not wise investments.

So where’s the outrage?  The stimulus bill was greater than the money spent under TARP.  The program to bail out all those troubled assets.  Those toxic mortgages.  That infuriated the masses so much they showed up outside some bankers’ homes with pitchforks and torches.  Spawning the Occupy Wall Street movement.  And the whole 99% against the 1%.  But these green energy scandals?  You can almost hear the crickets chirping as you read about them in the few papers that write about them.  Why?

That’s a rhetorical question.  We all know why.  Except for a very few exceptions the media is liberal.  And will actively support Democrats.  And attack Republicans.  That’s why a larger financial scandal gets less coverage than a smaller one.  And the smaller one only got that coverage because in that coverage they failed to tell the whole story.  It wasn’t the bankers that forced these borrowers into subprime mortgages.  It was the government who forced the bankers to approve the unqualified for mortgages or else.  Basically saying their lending practices were discriminatory and that if they didn’t change they would find themselves out of the mortgage business.  So how do you qualify the unqualified for mortgages?  With subprime lending.  Which they did.  And kept doing after Fannie Mae and Freddie Mac bought those toxic mortgages from them and unloaded them on unsuspecting investors.  Which is the part they don’t tell the people with the pitchforks and torches.  That it wasn’t the bankers who were responsible for the subprime mortgage crisis.  It was the government.

And this is why the media doesn’t care about the green energy scandals.  They can’t revise the facts to blame them on the Republicans.  So they just ignore them.

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Women are having Fewer Babies and they’re having them Later in Life Guaranteeing Continued Financial Crises

Posted by PITHOCRATES - November 4th, 2012

Week in Review

Aging populations are plaguing advanced economies.  In Japan.  The United States.  Britain.  France.  Spain.  Italy.  Greece.  And others.  All countries with large welfare states.  Large deficits.  And mountains of debt.  Fewer people are entering the workforce than are leaving it.  Resulting in a shrinking tax base.  Requiring higher taxes.  More borrowing.  And when all else fails, budget cuts.  Which is where the British are in trying to keep their NHS solvent.  Cutting 20% from the NHS budget.  While the US added Obamacare to a budget that is already causing record deficits.  Caused by fewer people entering the workforce than are leaving it.  So that’s how we got here.  Now how does the future look (see CDC: U.S. Birth Rate Hits All-Time Low; 40.7% of Babies Born to Unmarried Women by Terence P. Jeffrey posted 10/31/2012 on CNSNews)?

The birth rate in the United States hit an all-time low in 2011, according to a report released this month by the federal Centers for Disease Control and Prevention…

While the overall birth rate declined to a record low, the birth rates for women in the 35-39 and 40-44 age groups actually increased from 2010 to 2011.

Pretty bleak.  Not only are women having fewer babies they’re waiting another 10-20 years before having them.  Which means when the full costs of Obamacare hit we’ll have perhaps an all-time low of new workers entering the workforce to pay the taxes to fund Obamacare.  And the rest of that swelling welfare state.

In about twenty years our spending obligations will grow too great for taxes and borrowing to pay.  Which means the US will have no choice but to follow the UK.  And make massive spending cuts in our health care.  Resulting in increased wait times.  Rationing.  And perhaps a little Greek-style protesting.  Unless we repeal Obamacare.  And make some serious reforms in our two most costly programs.  Medicare.  And Social Security.  If we do we can save them.  If we don’t we probably can’t save them.  This is the choice we have to make.  Forced onto us by a declining birthrate.

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The EU won’t sell their Lethal Drugs for Vietnamese Executions

Posted by PITHOCRATES - November 4th, 2012

Week in Review

Capital punishment is a contentious issue.  Some people enthusiastically support it.  While others vehemently oppose it.  While others do both (see Vietnam says it’s unable to execute its criminals because EU refusing to export lethal drugs by Associated Press posted 11/1/2012 on The Washington Post).

Vietnam says it can’t execute its hundreds of death row criminals because the European Union is refusing to export the lethal drugs used in the executions…

Vice Chairman of the National Assembly Huynh Ngoc Son was quoted as saying the EU is trying to pressure Vietnam to give up capital punishment.

The EU doesn’t want Vietnam to execute people.  Presumably for humanitarian reasons.  Yet they make the drugs that states use to execute people.  Which isn’t very humane.  So they are both for and against capital punishment.  Interesting.

After Dien Bien Phu (where the Viet Minh massacred the French) you’d think the French would be all for selling lethal drugs to Vietnam.  While on the other hand, if they harbor no ill will to the current generation for what happened more than a generation ago you’d think they would respect the sovereignty of Vietnam.  Choosing not to interfere in their domestic policies.  And sell these lethal drugs to Vietnam.

They could probably buy these drugs from the United States.  For they use these drugs in capital punishment there.  But perhaps relations haven’t normalized enough yet for that to happen.  America’s involvement in Vietnam was a bitter one.  As they were winning.  Until the college protesters and Walter Cronkite defeated them from within.  Allowing the Vietnamese to turn to a Fabian strategy.  Staying in the war long enough until they made the US grow weary and quit.  Much like the Americans did to the British during the Revolutionary War.  But that was then.  More than a generation ago.  And the Vietnamese and the Americans are normalizing relations.  So they could probably buy these lethal drugs from the United States.  But if they’re talking about making their own drugs it doesn’t look like they’ve gone to the United States.  Or the US already said “no.”

Perhaps it’s just collective guilt with outside involvement in Indochina.  Who knows?  It just seems strange that a manufacturer of lethal drugs refuses to sell what they manufacture.   Which kind of defeats the purpose of making those drugs.

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Superstorm Sandy Recovery Slower in Less Affluent Areas where People Feel Abandoned

Posted by PITHOCRATES - November 4th, 2012

Week in Review

After George W. Bush used his special secret powers to steer Hurricane Katrina into New Orleans and then blew up the levees protecting the city because he hated poor minorities (that’s what some on the Left believe), the media attacked him for the federal response.  Nothing was done fast enough.  Or good enough.  And the reason was because George W. Bush hasted poor minorities.  But many have placed a lot of blame on the mayor and governor.  For not following New Orleans’ evacuation plan.  Especially the mayor for waiting so long to give the evacuation order.  Probably few will ever be satisfied with placing the blame for the aftermath of Katrina.  For they could have done a lot of things better.

Katrina is past history.  A tragedy.  But a learning opportunity.  After that experience all levels of government should be able to operate as a finely oiled machine to bring quick relief to anyone suffering a Katrina-like event.  And now we’ve had one.  Hurricane Sandy (or Superstorm Sandy).  So how is the Sandy aftermath going?  Well, if you read some reports, you’d think you were reading about Katrina again (see ‘This is our Katrina’: Misery for 2.5 million STILL without power after six days as lawlessness and fear take over New York’s outer boroughs by Rachel Rickard Straus and Snejana Farberov posted 11/3/2012 on the Daily Mail).

Almost one week after superstorm Sandy struck the East Coast with its ferocious force, power was still out to some 2.5 million customers due to damages, down from 3.5 million on Friday, the U.S. Department of Energy’s Office of Electricity Delivery & Energy Reliability claimed.

The state with the largest number of outages by far is still New Jersey with 32 percent of customers without power, it said it a report.

And as the lights begin to flicker on in Lower Manhattan, nine percent of customers across the state of New York still do not have power, followed by seven percent in Connecticut.

This comes as residents of the Rockaways in Queens continued to struggle without power, heat or food for a sixth day as their neighborhood slowly descended into chaos.

‘It’s chaos; it’s pandemonium out here,’ said Chris Damon, who had been waiting for 3.5 hours at the site and had circled the block five times. “It seems like nobody has any answers.”

Added Damon: ‘I feel like a victim of Hurricane Katrina. I never thought it could happen here in New York, but it’s happened.’

With little police presence on the storm-ravaged streets, many residents of the peninsula have been forced to take their protection into their own hands, arming themselves with guns, baseball bats and even bows and arrows to ward off thugs seeking to loot their homes…

City Councilman James Sanders said he fears that things are going to get even worse.

‘We have an explosive mix here,’ he said. ‘People will take matters into their own hands.’

Sanders has directed much of his anger and frustration at LIPA, calling on the City Council to investigate the utility for ignoring the Rockaways for so long.

‘LIPA has failed the people of the Rockaways,’ he said. ‘It’s a question of class… serving the richer areas of Long Island and ignoring the Rockaways…’

Stranded neighbors largely have been relying on volunteers delivering food, water and other basic necessities while the Red Cross and FEMA were still nowhere in sight…

In a Coney Island apartment block, where tenants huddle together in one room and human waste spills out of the toilet, tenant Jeffery Francis despairs that help is not getting to Brooklyn faster.

We are scavenging for food like animals,’ he told the New York Daily News. ‘We are in a crisis and no one will help us. Look at us. We are misery. Everyone cares about Manhattan. No one is looking out for us. Nothing…’

While power is likely to be returned to Manhattan’s East and West Villages, Financial District, Chelsea, Chinatown and the Lower East Side by the weekend, according to the power company Con Edison outages in Brooklyn, Queens and Staten Island are not expected to be repaired for another week.

Across Staten Island residents are also increasingly frustrated they are being passed over while other parts of New York and New Jersey receive aid and attention…

For power companies, the scale of the destruction was unmatched – more widespread than any blizzard or ice storm and worse than the aftermath of Hurricane Katrina.

‘It’s unprecedented: fallen trees, debris, the roads, water, snow. It’s a little bit of everything,’ said Brian Wolff, senior vice president of the Edison Electric Institute, a group that lobbies for utilities.

Initially, about 60 million people were without power in 8.2 million homes and businesses.

By Wednesday night, that number had fallen to roughly 44 million people in 6 million households and businesses and today around 3.6 million are without power.

Manhattan and Long Island getting power before the less affluent areas hit by the storm?  That sounds like what the Left claimed the Bush administration was doing in New Orleans.  Now either President Obama hates poor minorities, too.  Or neither he nor George W. Bush hate poor minorities.  More likely the Democrat-friendly media reported every New Orleans failing because they hated George W. Bush.  While they will make no such claims in the Sandy aftermath because they love President Obama.

It would probably be better to have a Republican in the White House during the Sandy recovery.  Because the media would be relentless attacking the administration for every misstep.  While a lesser federal effort under a Democrat administration will get a more positive treatment in the media.  So there would be more urgency under a Republican administration to help people than there would be under a Democrat administration.  Especially poor people and minorities.  Who the Left says Republicans hate.  Especially when this is happening a week before an election.

Had Sandy happened with George W. Bush in office running for reelection they would have excoriated him for hitting the campaign trail.  For not expending every last effort in the recovery process.  It would have been just like Katrina.  But President Obama can hit the campaign trail.  For he walked New Jersey with Governor Christie.  And that was enough.  Of course the people in Brooklyn, Queens, Staten Island, New Jersey and in the other areas struggling to recover from Sandy probably want more.  Especially when they see the lights coming on in Manhattan when they have no power, food or heat.  And have to defend themselves from roving mobs of looters.

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Governor Cuomo cuts Government Regulations to Speed Fuel Deliveries into New York Harbor

Posted by PITHOCRATES - November 4th, 2012

Week in Review

The crisis in the northeast following super storm Sandy has shown why we are ‘addicted’ to oil.  For when everything else fails us it’s what we turn to most (see New York Harbor Reopens, Bringing Hope to the Fuel-Hungry by Martha C. White posted 11/2/2012 on CNBC).

On Friday, Cuomo signed an executive order allowing distributors and transporters to bring gasoline, diesel and kerosene into New York State without being required to meet typical registration requirements.

How do you make things work faster and more efficiently?  Get rid of governmental regulations.  That’s right, when you need things to operate at their best you remove government.  You don’t add more government.  Just think how much better the economy would be if it was this way all of the time.  If it was we probably wouldn’t have a U-6 unemployment rate of 14.6%.

But other means of getting fuel into the area were still limited. And that’s not such good news for drivers who have spent hours lined up for gas or for thousands of homeowners who have been forced to use gas-powered generators to light homes darkened by Sandy.

Attack oil all you want but there is a reason why we’re addicted to it.  It’s the fuel that brings food to our grocery stores.  It’s the fuel that lets us drive to someplace that didn’t lose their electric power so we can find food and shelter.  And it’s the fuel that lets us heat our homes and refrigerate our food when we lose our electric power.  Oil is the go-to fuel when everything else fails us.  It’s Old Reliable.  And at times the difference between life and death.

The Oil Price Information Service reported that two big pipelines were scheduled to resume partial operations Thursday and Friday, although the oil they carry only moves at a rate of three to five miles an hour.

Even if the ports and pipelines were running at full capacity, though, getting that fuel into people’s cars presents other challenges.

One is the ongoing power outages. “We are all dependent on utilities for electricity and that includes service stations and bulk terminals,” Tom Kloza, chief oil analyst at OPIS, said via email…

At the retail level, tankers won’t deliver fuel to a gas station that doesn’t have electricity to power its pumps. As of Thursday, the American Automobile Association estimated that only 35 to 40 percent of gas stations in New York City and New Jersey were operating. On Long Island, the estimate was 30 to 35 percent.

The winds and tidal surge were devastating.  Downing power lines like falling dominoes.  But once the power lines are back up electric power will flow again.  Imagine if they had to rebuild the power generating infrastructure, too.  If the areas affected by super storm Sandy were powered by clean energy of the future.  Wind power and solar power.  If these were swept away like falling dominoes, too, it would take months to install new solar arrays and windmills.  In fact, it would take so long that they would probably attach the grid in those areas to a coal-fired power plant.  Until they could rebuild the clean power of the future.  While the detested coal-fired power plant (detested by the Left) shoulders the load comfortably.  Allowing those ravaged by super storm Sandy to return to normalcy quicker.  In fact, it would be far less costly just to leave these areas connected to a coal-fired power plant.  And smarter.  Because there will be other super storms coming that will just sweep the new solar arrays and windmills away like the previous ones.

If you’re interested in protecting human life during trying times you should embrace oil and coal.  As one will allow people to live when everything else is failing them.  And the other will allow the restoration of power as soon as the power lines are restored.  Something that solar and wind won’t do.

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