Monday, November 7, 2011

Scary Economy

The economy is in awful shape, no matter how many stimulus packages and bailouts Obama tries to hand-out.  


Yet another green energy company filed bankruptcy after receiving 72 million in recovery funds. Beacon Power, a Massachusetts based flywheel manufacturer, accepted 43 million in guarantee loans and 29 million in stimulus grants. Two months ago, Solyndra also declared bankruptcy and also obtained a 535 million loan from the same Department of Energy program. 


The government is distorting the market with these type of green loans. Investors and consumers should control the marketplace. In this case, had their been a need for another flywheel manufacturer in the marketplace, the stockholders would have green lit the project. Instead, the Obama administration bankrolled another green energy company and it goes broke. 


I am fed up with the mismanagement of our government. There is no reason for the stimulus to the green energy companies. Why has the Obama administration not learned from other failed stimulus like "Cash for Clunkers"?  





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