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Fisker - The New Solyndra: Obama Kept Pumping Taxpayer Cash As Company Was Failing
It appears, once again, that the government's inept approach to spending 'other people's money' has blown up in their face. As HotAir.com reports, newly obtained documents show the Obama administration was warned as early as 2010 that electric car maker Fisker Automotive Inc. was not meeting milestones set up for a half-billion dollar government loan, nearly a year before U.S. officials froze the loan. Just as with Solyndra, Congress seemed convinced to spend billions of taxpayer money 'investing' in green-tech startups - only to lose everything. Simply put, in our humble opinion, the pattern is explained by the 'monopoly money' perspective we suspect these funds are viewed as in light of Bernanke's inexorable funding of the government's largesse. None other than the great Joe Biden reveled in the news in 2009 that Fisker would re-open a closed GM plant creating jobs, jobs, jobs; it never completed the task and never created one job. When the money isn't yours, 'investing' public funds is oh so easy and it appears, with zero consequence for the decision makers - again.
Via HotAir.com,
Stop me if you’ve heard this before. An administration walks into Congress and insists on billions of dollars to “invest” in green-tech startups, then loses its shirt on bad bets - even while knowing the bets were bad. If that sounds like Solyndra, well, you’re right...
... Fisker Automotive, which continued to get millions in taxpayer funds even while failing to meet the conditions of its loan:
Newly obtained documents show the Obama administration was warned as early as 2010 that electric car maker Fisker Automotive Inc. was not meeting milestones set up for a half-billion dollar government loan, nearly a year before U.S. officials froze the loan after questions were raised about the company’s statements.
An Energy Department official said in a June 2010 email that Fisker’s bid to draw on the federal loan may be jeopardized for failure to meet goals established by the department.
Despite that warning, Fisker continued to receive money until June 2011, when the DOE halted further funding. The agency did so after Fisker presented new information that called into question whether key milestones — including the launch of the company’s signature, $100,000 Karma hybrid — had been achieved, according to a credit report prepared by the Energy Department.
Some may wonder what will happen to all of the American manufacturing jobs that the loans helped create. On that score, we don’t need to worry … because all of that cash didn’t produce a single job anyway:
Vice President Joe Biden announced in late 2009 that Fisker would reopen a shuttered former General Motors factory in Wilmington, Del., to produce plug-in, electric hybrid vehicles. The plant was never completed and never produced any cars.
...
Once again, we see that “investing” only works when the investor is managing his own money, and not public funds. How many millions of dollars have been lost because this administration couldn’t admit that it backed turkeys — and also admit that firms that can’t attract investors on its own are the worst possible bets in the first place? The biggest question that the White House should answer is the names of those who kept approving the cash disbursements to Fisker, Solyndra, and a host of others in its loser portfolio even after finding out that the companies were failing.
But this story is not over yet. As Reuters reports today, the CEO of the company is heading to Congress once again to explain that Fisker can be successful if the right "financial and stratgeic resources" are provided. We won't hold our breath...
"After resolving initial launch challenges, the cars perform well and customers love them," according to a copy of Henrik Fisker's testimony to the panel. "Fisker still has the potential to build on these achievements if the company can secure financial and strategic resources."
...
The House Oversight and Government Reform committee will focus on the U.S. Department of Energy's (DOE) decision to grant Fisker Automotive a $529 million loan in 2009.
The hearing comes as the automaker verges on collapse. Among the key questions is whether Fisker's prospects were strong enough at the start to warrant the DOE's backing, which helped trigger a flood of private financing for Fisker.
...
Forecasts in 2009 for the sale of hybrid and electric vehicles far outstripped subsequent demand.
"I'm not sure there is anything anyone can say or do to help Fisker," said Theodore O'Neill, an analyst with Litchfield Hills Research LLC. "The company is adrift without Henrik.
"The supply chain is broken, so they can't get parts on credit anymore, and while it is one of the most beautiful cars on the road, there is insufficient demand," he added.
Lawmakers may raise questions about the relationship between the DOE and Fisker, which has been strained in recent months, people familiar with the matter have said.
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An expensive, complex, fire-prone hybrid that isn't very fast and doesn't get very good gas mileage. I just don't understand how it could have failed.
That's "investment", not "spending". Haven't you heard?? /sarc
Well it's employment for millions of mechanics fixing each car every few miles and millions more firefighters and lawyers every few thousand, remember broken windows is 20th century, now we're in the 21st we have wheeled MOABS that break down dozens of times before the target, I mean destination.
The broken car economy an iteration on the Krugman broken window economy.
It’s just comforting to know that this same leadership, mindset and investment approach is in the process of yielding the same results for most every aspect of US and global society.
I think I will start my own iteration on this, open an auto glass business and go around town breaking car windows. Actually with all these out of work 20 something year olds I bet they have plenty of pent up aggression looking for an outlet and would gladly go into some high end neighborhoods and do it for free.
I like how everyone is wetting themselves over the government granting a LOAN to a company to start a new field of industry that could actually help the U.S. be competitive in world markets, yet nothing is mentioned at all about the numerous military spruce gooses out there like the now infamous F-35 that has cost taxpayers billions in development, and will cost a projected $200M per unit (or 1/2 of a Fisker loan). I get the mismanagement aspect of the arguement, but as far as goverment being asleep at the wheel and mis-allocating tax dollars (or should I say Chinese lended funds), this is a mere drop in an infinite sea of crony inspired waste.
You have to start somewhere........ The government shouldn't be in the direct investment including vetting business plans when it comes to loans in an industry it knows shit about simple as that.
That darned Barry Obama, he's one heck of a doggone sharp businessman. He is all about capitalism and he is a whiz at understanding the bottom line. And that is how he's been able to so adroitly pull the US out of that depression he inherited. Thank the lucky stars for good ol' Barry O. Mm mm mm.
So, there were no jobs "saved or created" in Delaware or Valmet Automotive in fucking Finland?
Color me shocked ;-)
The Obamatron should stick to what he knows: Guns & Ammo Sales!
Just because one thing is obviously fucked does not mean that we should ignore other things that while they may be fucked are not quite as fucked as the original huge fuck story.
These "investments", whatever industry they pertain to, only exist as part of corporate welfare (aka, crony capitalism) and they're a consistent failure. It's how politicians pay back those that support their political career. Hence ALL such "investments" should be eliminated......permanently. It's also why the central government keeps growing bigger and bigger. There's lots of friends and family, you know.
well for one thing, military spending is actually authorized in the US constitution, whereas "green" technologies are not.
So the those in gov cannot make shit that they supposedly need to kill and steal from more people but they have all the wisdom that is needed to fund a business/industry that the "create money" banks don't even see as wise.
Or could it just be a clear case of pissing away stolen loot on "you do me and I'll do you" politics?! hujel
Despite some failures, many us military programmes have been proven generators of fantastic value added technology. This is due primarily to two things:
1) DARPA, an extremely successful early technology launch platform with an open public vetting process via the us congress and many leading us researchers
2) certainly in the 50s and 60s, rand corporation. There would be no Internet, Boeing 747, 777, 787, or airbus for that matter without rand.
So, with real oversight from external adults doing real analysis on behalf of the public and broad input from congress, military spending is often a great driver of innovation. Not always, but generally pretty good, particularly when compared to the crap that the European Union funds which has mostly been money down the toilet. You want to see crap, check out the EIT programme of Barosso.
We should deploy every SWAT team in the country to shoot holes in any boats they can find.
Forward, bitchez!!
how many air traffic controllers did these bad investments cost?
how many air traffic controllers did these bad investments cost?
we heard you the first time.
this something else to thank these fuckers for....at least get to second sentence
http://www.baltimoresun.com/health/maryland-health/bs-hs-insurance-rate-...
I find it useful to place blame where it is most aptly pinned. In this case, one might consider placing the blame on congress, which is where the power to spend actually resides. As fun as it is to blame Obama, the headline misses the target.
Congress's fault was thinking that a clown like Barry knows or would hire anyone remotely competent to make a responsible decision in the first place.
It was Chu's DOE that reviewed and approved the application.
you mean the Congress with 60 democrats in the Senate and Nancy Pelosi overseeing the House majority?
It's for the fucking children. Quit yer bitching.
Fisker?
I thought that was like the "shocker" but reversed?
pods
It was progressive....... While it lasted........ Ahah, Ahaha, AHAHAHAHAHAHA!
https://www.youtube.com/watch?v=fyklt01lN_I
Enough with your stupid fucking harlem shake links already.
Electric car alert! Paging DCFusor!
You mean Dr. Emmitt Brown and Mr. Fusion.
He'll be with us momentarily. He's trying his damndest to find a positive article for buying a Dolt.
He just showed up.
Hope & Change. Give every illegal alien a Fisker. Order more drones for Americans who might complain.
Instead of "A chicken in every pot", it's now "An EBT card in every purse and wallet".
BA's fireprone, grounded 787 fleet led to new highs for boeing stock. proven model.
At least GM made a car that works. Still love my Volt, BITCHES. Almost 2 years now and I like it more every time I go someplace and don't have to buy gas. And, it's fun to drive. It's no Tesla, but then - those are kind of hard to just write a check for and drive off - you have to wait, and hope they are still in business by the time they make your car.
Hate GM all ya want - this was a "bet the company car" started long before the bailout junk went down, and they made a good bet, it's the best thing they ever made, which puts a lot of other manuf's cars behind it. 98% of owners would buy another - find another car with that stat. Even one.
Buyers' Remorse, party of 1, your table will soon be available.
98% of all 10 owners...not bad.
It's nice not buying gas. I take it your wife pays the electric bill.
The Fusor makes his own electricity. Almost all solar. See his website.
Why not take DCFusor at his word? If he likes his car, he likes his car!
Saw one of those shit-boxes the other day. I was walking past a "Trader Joes" (notice I said "past" and not "into") and - naturally - it was parked right out front - they even backed into the parking spot so you could see the extra-large "Zero Emissions" sticker/badge on the back. They wanted to make damn sure that everyone walking buy *knew* they cared more about the planet than anyone else possibly could.
I Lol'd.
What that sticker actually says is "I'm too fucking stupid to understand that I've only *moved* the source of emissions - from my car to a power plant somewhere..."
These are the same asshats who believe the world will eventually "run out" of water.
Is Obumma still president?
He has ALWAYS been the president.
Back to work, citizen.
I miss the days when the incompetence of the federal government was (rightly) taken as fact by all. Now people are begging the .gov to take their money and manage their lives.
Fister
Double
Who among us doesn't long for a gigantic DMV-like bureaucracy to herd us like livestock from cradle to grave?
Thought we were there already
Nah, they're begging for fedgov to take YOUR money and give it to them and/or their friends. Or worst case, borrow it from Benron (cuz we all know there's no consequences to that).
You're right as usual, N/A.
Joe Biden, Joe, Joe....."What would Jon Corzine do?"
They should call it "FISTER" and tax-payers are the recipients.
Imagine that.....Obummer failing at something else. It seems that the only thing he is succeeding at is having the media carry his water and covering up for his bumbling.....if it really is bumbling and not contrived.
Doc, I'm a contractor involved in energy management and alternative energy. You're assuming O'boingo's & the government's involvement in Solyndra and Fisker was to promote it. On the contrary, his involvement was intended to drive a stake through its heart, once and for all. It was a remarkable success. Mission accomplished.
Alternative energy and electric vehicles work. The problem lies in the fact that if you're not consuming massive amounts of energy, you're not paying the taxes on that energy. The government talks a big game about energy conservation, but if you actually do it you're stepping on everybody's toes and they fight back.
O'boingo does what his masters at the fed tell him to do, what his masters at the banks tell him to do and what his masters at the energy companies tell him to do. They bought and paid for him, he's just doing as a good puppet should do.
Esso........Thanks for making that point....I hadn't considered that angle....Big Business/Oil/Govt/MIC killing what could/might help us
"When the money isn't yours, 'investing' public funds is oh so easy and it appears, with zero consequence for the decision makers - again."
Not "zero consequences", unfortunately. Rather, the consequences in the near-term are often campaign contributions and/or reelection. Doing something is rewarded over doing nothing, even if the something is incredibly stupid.
You will love this list Tyler. President Obama's Taxpayer-Backed Green Energy Failures
"You have to give them the money first, to see how they will waste it." paraphrasing Nancy Pelosi
he is practicing to be a hedge fund manager in his after life.......
Too bad he didn't have any practice as Private Equity manager before hand, then he could have ass-raped Henrick and his fellow stake-holders and the taxpayers would have made like bandits on 20% of the deals, more than offsetting the losses or break-evens on the other 80%...
tinfoil hat theory of the day:
these companies were set up to fail.
To be fair, on a dollar basis, that's (so far) only 10 percent 'invested' into losers. Do Venture Capital firms normally have a >90 percent success rate?
Look at this shit that Blodget the felon is trying to sell:
The Economic Argument is Over and Krugman Won
http://finance.yahoo.com/blogs/daily-ticker/economic-argument-over-paul-...
This little assweasel needs some prison time with Bubba Blacksnake
Assweasel! LOL
WTF.
I think I threw up in my mouth.
Look at the comments section of the article and your nausea will subside.
Do I have to read all 3,626 of them?
Serves you right for reading it.
Selling the bear skin before one has cought the bear ey... Wise.
LOL. And Henry Blodgett, a/k/a Jeff Bezos's buttboy, says the austerity debate is over and Paul Krugman has won. Hopefully he'll be fighting for cat food at an Amzaon distribution center next year.
I was really pissed reading this story. My doorbell rang while I was reading so I went to get the door and low and behold a fresh delivery of 50 Maples Leafs was awaiting my signature. I'm not pissed anymore. FUCK YOU OBAMA and FUCK YOU BERNANKE
No better way to spend $68,000
Unless you like hookers and blow :)
Maples come in at least two flavors...
My LCS is out of lots of silver and gold products, I just signed up (and paid for) a dozen ASE's; they say the next shipment is due in three weeks. They have some junk silver, but no ASE's in stock, no Maples, no Philharmonics; I hope I get delivery before it all comes crashing down. Then again, since 95%+ of Americans have no PM's and no idea, it might not matter anyway; what I have already may be plenty (except for that terrible boating accident, of course).
Anybody know where silver is still in stock? I could sell the cat...
Anthony L. Posawatz
Worked for GM, "Line Director" for Volt:
http://books.google.com/books?id=OIbWZX2J-d0C&pg=PA129&lpg=PA129&dq=Anth...
More the same, if you have the connections and pay to play, you get paid.
I think I have an idea on where the sequester cuts should be coming from......
"Vice President Joe Biden announced in late 2009 that Fisker would reopen a shuttered former General Motors factory in Wilmington, Del., to produce plug-in, electric hybrid vehicles. The plant was never completed and never produced any cars."
Oh no, you mean assclown Biden lied? Surprising
just like JPM, GS, BOA etc only the most useless, corrupt corporations get money.
I just love the centrally planned business... i mean the bureacrats doing business - nothing could be more crap and there are tons of example around the globe but why did they plan the bankruptcy?? i mean was it part of the plan :)
Fisker DID build that.
His mouth was moving, wasn't it!
What difference does it make? As long as Bernanke continues to fund the whole thing, these assholes will continue to spend it all like a drunken sailor in a whorehouse.
Can I have some money now?
You really think politicians could give a flying rat's ass if these projects actually pan out in the end? All they care about is using our money to get themselves elected by convincing Joe and Jane Sixpack that they'll have their own skittle-crapping, rainbow-jumping unicorn. The fact that the Sixpack's never end up with one is irrelevant, because they have the memory of a gnat and by the time the politician comes up for election again he'll have some new bullshit scheme, using our money again of course, to get himself elected again.
Abandon all hope...
I am disbelieving how this loss making, fire loving, slow moving, zero range, fire involving, beautifully ugly, government sanctioned piece of automotive history didnt make a loss, sorry a plus.
I am shocked, fucking shocked to my core this fantastic piece of government aproved shit failed.
Obviously.
Mix, you just might be the fill-in for LongSoupLine that we've all needed. Where is that fucker anyway?
Hehehehehe,
Nice one meat.
Dont think so mate, and aye, where is he? Might be the old NSA or even GCHQ?
And who the fuck would call a car a 'Fisker'? Dumb fucks, must ov been a gubbermint bloke.
Long after anyone should care, expect recordings to surface much like Kennedy's talking about the space race and how he didn't give a damn.
Obama reminds me of the blackjack player who kept doubling down.
However, at least the BJ player used his own money (I think).
I call BULLSHIT. Even on the above blogs. Here's why:
The Gov is acting like a VC in this, that's all. It's their right to take a strategic tack on developing a technology they think has a future. And like all VC's, the success/failure rates are not stellar. Which is why they want huge premiums on their participation. You could say that instead of being 'Romney-funded', they were 'Obama-funded'. It's a failed VC play, nothing more. Next?
Obama funded? I think you mean tax-payer funded.
I didn't see anything leave Obama's pocket.
You are correct of course, but notice the '...' apostrophy text I used. Obviously I do not mean Romney or Obama literally, but to "label" them as private and public variants of Venture funding. Private funding may be preferrable (in a perfect world), but public funding is acceptable to me, because...
While I'm sorry to see that this failed, as long as they're going to print $85B/mo ($1T/yr) anyway, I'd rather see them spend it on something with far more promise and potential than totally waste it on the Mutterfickers at the DOD, CIA, DHS, NSA..., JPM, GS...
Perspective, sportsfans. Perspective.
False Analogy.
VCs turn a net profit or DIE.
Show me the WINNERS, not the WHINERS.
Are you serious? The government is not supposed to act like a venture capital firm. And do I really need to point out the difference between the use of private and public funds? Romney would lose investor money; Obama loses taxpayer money. In other words, we have no choice but to invest in this shit because the government takes our money by force.
Because VC's have VOLUNTARY investors, that have chosen to take a risk on their money. We give the money to the government to keep the infrastructure intact and pick up the garbage, not give our hard-earned money to their buddies to piss away on pipe dreams.
Nobody from the government ever asked me if I wanted to invest my taxes in the fucking Fiskar, if they had I would have told them to piss off, and take the garbage out when they leave.
I don't disagree one bit with you on principle. But I don't see them asking any of us about the trillions they waste on DOD, NSA, CIA, DHS, or the TBTF bailouts and $85B/mo for Wall St.
Yeah, well, I think must of us would tell them to piss off on most of that stuff, too. Wouldn't you?
Fiskar not only took Fed money but ALL production is in ,,,,,Finland.
BAM BAM simply printing his own campaign contirbutions - funnelled and laundered thorugh a shell corporation
Obama stubbornly doubles down on everything. Probably did this because Buffett told him to. Buffett loves lower prices on everything he owns. "It's only a loss if you sell."
If we survive this, no more killer butterflies and moonbeams in .gov
Two things ..you can see why they voted the insider trading down again...to easy to make money if you know where it is going..and number two..a lot of that money went back into the politicians treasure chest for elections....just sayin..
David Stockman's new book (The Great Deformation) talks about this scam with Fisker and also Solyndra.
I thought the book (which I just finished) is well worth reading and really contributes a lot to understanding both the historical details and the big picture escalating trend leading us headlong into the coming Hard Impact...
Stockman's book really gets to the heart of the problems... great read.
I find it inexplicable that anyone thinks that "green" projects are anything other than slush funds for campaign contributors.
fisker mustve been poking baraka in the whiskers.
saw the fisker at an auto show, real sharp car.
Yep, and they can actually burn underwater too!
Obama: A complete and utter disgrace or
Obama: Doing his best for America
Both.
The deal was a success. A lot of that cash went to his crony friends and came back by way of contributions to get him reelected. No different than with Bush/Cheney and Halliburton. Quit your bitching -that money is spent on luxury goods -yachts, expensive cars , cocaine, hookers, etc. That creates a lot of jobs.
This was obviously a disguised weapons program. Didn't you see those suckers burn?
You're not really too far off. They can make drones that kill 4 year old girls half a world away, but can't get an electric car go down the road, a feat that Detroit Electric was doing in the early 1900s, before electricity was really even understood.
Well, if the government was buying the electric cars at $250,000 a piece, I'm sure that making electric cars would be just as profitable as making drones and missles.
Wait! - isn't Biden from Delaware where the failed plant millions was spent on?????
Fisker my Tesla, Bitch ! I'm glad they didn't besmirch Thomas Alva Edison's name with this socialist sorcery crap .... when the people want it .... free enterprise will deliver it .... get out of the way you pussy, Obama !
Reuters reported that Obama said that if either of his daughters got a tatoo he would get a tatoo of the same design on the same place and post a video of it on utube to discourage them. What if their tatoo was ''I love Justin Beiber', 'or a picture of mohammid on his butt. I would pay for that utube view.
Blue Onions.
Misappropriation of taxpayer funds, theft.
I want this asshole Obama arrested.
Fucking thief.