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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