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On Fisker and Politics

Bruce Krasting's picture




 

 

Obama will give a speech today advocating more support for alternative energy vehicles. He wants to set up a (another) Trust Fund to achieve his goal. The TF will be funded by revenues from oil and gas leases. The Prez wants to throw another $2b down the electric car rat hole.

It's an interesting day for the President to be bring up this idea as there is some evidence that another of Obama's prior investments is turning into mush. The next Solyndra is setting up to be Fisker.

 

Fisker is private, so no numbers to look at. Therefore my thoughts on Fisker are just speculation. That said, something is up. The boss and founder of Fisker, Henrik Fisker, left the company yesterday. That's never a good sign.

 

forbes

 

If there is to be a problem with Fisker, there will be blow-back to Obama. In 2009 Obama rushed to lend Fisker money. There will now be a lot of disclosure of what went wrong at Fisker. I can't wait for the details.

 

The Department of Energy announced the Fisker loans in September of 2009. The original deal was for a total of $528m.

 

wired

 

After the announcement there were a number of individual loans made to Fisker by the Federal Financing Bank. These are the details on the individual advances made by the FFB:

 

ffb

 

5/2010 - $60m

6/2010 - $17m

7/2010 - $16m

8/2010 - $17m

9/2010 - $16m

12/2010 - $20m

1/2011 - $17m

2/2011 - $1om

3/2011 - $9m

4/2011 - $7m

5/2011 - $3m

______________

Total = $192B

 

Bingo! Only $192m of the $538m that was committed was lent out. Why would that be?

 

I have no direct knowledge of what happened back in 2011 when the DOE pulled the plug on the balance of the loan advances, but this is unusual. In any loan agreement (including loans made by the FFB) there are Conditions Precedent for draw-downs under an existing loan agreement. For the FFB to stop making loans, there had to be a legal reason; it had to be a covenant violation.

Typical covenants would include things like 1) A minimum net worth ratio, 2) minimum liquidity ratio, 3) revenues, 4) specific milestones of progress, 5) change of management, 6) change of control etc. There is always one provision that is a catchall - Material Adverse Change (MAC).

What was it that caused the change of heart at the DOE? When did it realize that something was "not right"?

The timing is suspicious. What was happening in May of 2011? The answer is that by this time, the DOE knew that Solyndra was going into the tank. The DOE renegotiated its Solyndra loans to allow other lenders in. The DOE agreed to subordinate its loans (a sure sign that something was about to hit a fan). Where the coming losses at Solyndra a factor in setting Fisker adrift?

 

My take on this? Fisker has a problem. If they do not sell themselves to a Chinese buyer pretty soon, Fisker will be in the headlines. If things go in that direction, the DOE loans will be at risk - another Solyndra might be in the making.

My problem with this is the calendar. Something bad happened sometime around May 2011 when the advances to Fisker were pulled. If there was information about a Fisker problem back then, why was there no disclosure? This is Federal money that was lent to a start-up private company. One would think that the tax payers (and voters) would have had some information about what was happening with their money, no?

Romney tried to nail Obama about the President's lending policies for alternative energy programs. Mitt waved the Solyndra flag, but no one cared, and it was never a campaign issue. But I do wonder what would have happened if the real reason(s) for pulling the Fisker plug were made public prior to the election. Obama got a pass on his mistake with Solyndra; I think he would not have gotten a second pass if it were known that there was another bad loan on the books.

 

The questions are, Who knew what? When did they know it? When was this communicated to Obama (if ever)? And if there was a problem that the WH was aware of, why didn't they disclose it prior to the election?

 

Lots of speculation by me in this report, so be guided accordingly. I have somewhat of a track record on these things. I was the only one to publish a report that Solyndra was going broke, before it went broke. I've got that whiff of rotten eggs again. Link to my report: Government Investment Disaster in the Works??

 

4264830560_1f0e16b131_z

 

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Fri, 03/15/2013 - 18:28 | 3333690 de3de8
de3de8's picture

I knew it was a farce years ago when Fisker at one of the big car shows and telling people they would cost 86k! I knew on the spot either a sham or outright lies to sucker in deposits. The car is beautiful and high level of finish, anyone should have been able to surmise or at least question how could be produced for 86 k.

Fri, 03/15/2013 - 18:26 | 3333685 Lumberjack
Lumberjack's picture

Thanks for the heads up Bruce. I am working on next weeks article at another site that will have more info regarding China etc. including a few new surprises. At this time there have been several very serious developments that I will elaborate on later. 

 

For those who might be interested here is some of my work. At the end of each 'article', there is a clickable link to the previous weeks edition. 

http://dailybail.com/home/the-mafia-is-moving-into-green-energy.html

 

Fri, 03/15/2013 - 17:16 | 3333549 Rustysilver
Rustysilver's picture

If Obama wants the electric car technology he should look to Europe.  I think they call them trams there.  They go on rail tracks.

Very effective and very efficient since you use power from electric plants.

The technology is about 100 years old but still useful.  We need to stop supporting 1950's transportation model; it's not very efficient.

Fri, 03/15/2013 - 17:54 | 3333622 ebworthen
ebworthen's picture

In major metropolitan areas perhaps.

Problem with the U.S. is the geographic differences from Europe, large stretches of nothing between towns, cities, and regions.

Fri, 03/15/2013 - 17:37 | 3333594 Matt
Matt's picture

Or, rather, stop all the subsidies and let the market sort it out.

This includes ethanol subsidies, oil and gas subsidies, nuclear subsidies, military force subsidy, etc.

Fri, 03/15/2013 - 16:46 | 3333485 ebworthen
ebworthen's picture

Phil LeBeau was pumping it on CNBC so that is a bad sign.

Republicrats/Demicans - they are all crony capitalists Bruce - it's a race to the bottom with taxpayer's money.

Fri, 03/15/2013 - 16:42 | 3333479 doggis
doggis's picture

bruce - this was bankrupcy was PLANNED. it is A TRANSFER OF TECHNOLOGY to china masked as a BANKRUPCY - plain and simple! the sale to china WILL go through. it is obvious. 

there are advantages with being the worlds largest creditor nation.

Fri, 03/15/2013 - 17:35 | 3333578 Matt
Matt's picture

Transfer of Technology? The batteries and electronics are made in China, because China is the only country willing to waive all liability for rare earth miners. BYD already makes and sells plug-in electrics there. And what do you know, the Chinese use Lithium Iron Phosphate batteries in their electrics, instead of the dangerous Lithium Cobalt Oxide:

http://www.byd.com/auto/e6.html

EDIT: HIGHLIGHTS

recharge: 40 minutes on 100 Kw charger or 6 hours on standard 10 Kw charger.

Range: 186 miles of urban driving

maximum speed: 87 MPH

Power: ~105 HP, tons of torque across the powerband

And this is, as far as I can tell, a regular family car, not an exotic sport luxury car.

Fri, 03/15/2013 - 17:00 | 3333522 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Transfer of technology to China?! Who the hell wants cars that can burst into flames spontaneously or during flooding (see hurricane Sandy).

Fri, 03/15/2013 - 16:39 | 3333469 idea_hamster
idea_hamster's picture

"One would think that the tax payers (and voters) would have had some information about [spending | surveillance | military operations | bank bailouts | foreign bank bailouts | whatever]."

Unfortunately, that era came to an end.  It's never quite clear exactly when one slips across the event horizon....

Fri, 03/15/2013 - 15:54 | 3333345 kaiserhoff
kaiserhoff's picture

Nice piece, Bruce.  At least Barry is consistent.

He always backs the losers.

Fri, 03/15/2013 - 16:59 | 3333516 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Think he's getting tips from Whitney Tilson?

Fri, 03/15/2013 - 16:38 | 3333464 Winston Churchill
Winston Churchill's picture

As gardeners say 'he has a black thumb'.

He's the kiss of death to everything he touches.USA included.

Fri, 03/15/2013 - 15:38 | 3333299 Rainman
Rainman's picture

This news is cause for celebration. Using Oblameo math, he has saved the taxpayers $ 346 million !

Fri, 03/15/2013 - 15:36 | 3333295 Dead Canary
Dead Canary's picture

I smell gas.

Fri, 03/15/2013 - 16:56 | 3333512 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

I couldn't help myself:

https://www.youtube.com/watch?v=AW0Fa7k3O9Q

 

Fri, 03/15/2013 - 15:33 | 3333290 Hal n back
Hal n back's picture

Hon. Albert Arnold Gore, Jr. Al, is a Vice President of Rodale Inc. Hon. Gore is Vice President at SIRIUS XM Radio Inc. Hon. Gore serves as a Partner, Senior Partner and Investment Partner at Kleiner, Perkins, Caufield & Byers. He has been a Senior Advisor to Google, Inc. since 2001. He joined Kleiner, Perkins, Caufield & Byers on November 12, 2007 where he focuses on greentech investments. Hon. Gore is a Partner, and Chairman of Generation Investment Management LLP .

 

Ibeleive his PE firm is heavily invested in Fisker

Fri, 03/15/2013 - 15:31 | 3333284 shovelhead
shovelhead's picture

Should be renamed Fister...

For American taxpayers.

Impeachment Time.

Fri, 03/15/2013 - 15:42 | 3333306 Rainman
Rainman's picture

nice....but I like Fleece-ter moar better.

Fri, 03/15/2013 - 15:26 | 3333272 Hal n back
Hal n back's picture

A big west coast pe firm, maybe kkr, invested in Fisker. Why do we have to help a big PE firm.

 

I think Al Gore is with the firm as he was in line to receive one of hte first fisker karmas.

 

I learned that 6-7 years ago at a small cap conf inAZ where a key suppler to Fisker was touting its stock, which has not done well at all)

 

everywhere you turn you see political  clout for the elite.

 

Fri, 03/15/2013 - 16:01 | 3333366 negative rates
negative rates's picture

Who?

Fri, 03/15/2013 - 13:47 | 3332976 Father Lucifer
Father Lucifer's picture

 

 

Lithium in large quantities should not be used around anything that you would not want to lose in a (hell) fire, ie: PEOPLE. The shit is extremely volitile and should be banned from use in transportation.

Fri, 03/15/2013 - 16:52 | 3333504 Freddie
Freddie's picture

+1

Put all these evil corrupt politcians and banksters on lithium

http://www.drugs.com/lithium.html

Lithium affects the flow of sodium through nerve and muscle cells in the body. Sodium affects excitation or mania.

Lithium is used to treat the manic episodes of manic depression. Manic symptoms include hyperactivity, rushed speech, poor judgment, reduced need for sleep, aggression, and anger. It also helps to prevent or lessen the intensity of manic episodes.

Lithium may also be used for other purposes not listed.

Then get the rope and find some lamp posts for the VC as*holes in SillyCon Valley, the politciians and basnsketrs..   Also set up the gullotines.

Fri, 03/15/2013 - 12:03 | 3332639 fredquimby
fredquimby's picture

Something bad happened sometime around May 2011

It was about then that Fisker committed to production in Finland rather than producing in the USA?

I cancelled mine about a year ago after a three year wait. They had just sent me a toy one, and I panicked that they had contractually met their obligations and had duly delivered me a Fisker! It was about Solyndra time too, so I decided they had had my grand for long enough....

 

Fri, 03/15/2013 - 12:01 | 3332635 the grateful un...
the grateful unemployed's picture

just one question, how much did Fisker contribute to Obamas Presidential reelection.

Fri, 03/15/2013 - 15:55 | 3333351 Midas
Midas's picture

Bruce-  I am of the opinion Barack H. Obama will ALWAYS get a pass.  He is going to weasel out of Benghazi for crying out loud....

Fri, 03/15/2013 - 16:04 | 3333378 Joe Davola
Joe Davola's picture

"WHAT DIFFERENCE DOES IT MAKE" got out of the way of that situation pretty tidily also.

Fri, 03/15/2013 - 11:29 | 3332518 bank guy in Brussels
bank guy in Brussels's picture

Quite chilling re Obama

Good 1-page photo history of Barack Obama's secret hidden family background

Emotional roots of how Obama became a sociopath drone-plane murderer of people everywhere, from Americans to Pakistani children

Page has strong rhetoric, but great photos and well-grounded facts in the long history of documenting the 'real' Obama

Generations of emotional trauma on Obama's maternal side
- great-grandmother suicide
- grandfather abandoned
- mother Ann Dunham repeatedly traumatised as a child
- Obama himself abandoned and traumatised, including by his mother

Obama's mother poses for nude porno photos by a black Communist, Frank Marshall Davis, almost certainly Obama's real father ... Davis authored a book, 'Sex Rebel Black' under name Bob Greene, describes threesome sex with Obama's mother

Comparing photos of Obama and Davis, and Obama's claimed father ... it was obviously Davis

Obama cared for by a transvestite nanny 'Evie', now an old broke gay prostitute abandoned by Obama

Obama himself becomes a teen-age pot-smoking, drug-using homosexual

Obama's gay-boy lovers, Larry Sinclair, Donald Young, Reggie Love, Kal Penn

Barack Obama joins the 'community organising' political stream following Saul Alinsky, who dedicates his book to Lucifer

Obama suddenly makes connections, he gets a lucrative book deal, Ivy League 'credentials', mysteriously and suddenly a political 'superstar'

Obama - not seen with women - gets hooked up to marry Michelle as a 'cover' by Rev. Jeremiah Wright

Well-done Obama history with the photos ... and showing profoundly that murdered children are the ultimate result of 'Barack Obama'

http://www.tomatobubble.com/presidentpsycho.html

Fri, 03/15/2013 - 15:59 | 3333358 negative rates
negative rates's picture

And I have a list as long as both our arms.

Fri, 03/15/2013 - 16:49 | 3333495 Freddie
Freddie's picture

Yeah red team blue team but this is all Democrats and SillyCon Valley.  F Them.  Tell all your liberal friends and relatives up in Masspeaqua, NY - Bruce.

F Neocons and RINOs too!

 

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