Tag Archives: Jobs

News

Obama administration knew $535 million Solyndra loan was too risky

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FBI agents remove evidence from Solyndra Headquarters
FBI agents remove evidence from Solyndra Headquarters

Here’s the latest from the radically leftist New York Times.

Excerpt:

Republican lawmakers, escalating the political furor over the collapse of a solar equipment manufacturer that received a $528 million government loan, released excerpts from Obama administration e-mails on Wednesday suggesting that the White House pressed federal officials to wrap up their review of the loan quickly for political purposes.

In the e-mails, officials at the Office of Management and Budget expressed frustration that they were being put under time pressure to sign off on the loan to the company, Solyndra, two years ago so that Vice President Joseph R. Biden Jr. could announce its approval at a groundbreaking for a factory. The White House wanted an announcement that would show progress on job creation.

The disclosure became a focus of a House Energy and Commerce subcommittee hearing on Wednesday about the loan to Solyndra, which has developed into a political headache for the Obama administration. The administration used the company as a prime example of stimulus bill dollars creating “green jobs.” But Solyndra recently filed for bankruptcy protection and closed its factory, and its headquarters was raided by the Federal Bureau of Investigation, apparently in connection with the loan.

The bankruptcy filing and the raid “clearly show that the committee was more than justified in its scrutiny of the deal,” said the panel’s chairman, Representative Fred Upton, Republican of Michigan. “Why did the administration think Solyndra was such a good bet?”

[…]Suspicions that the administration might have pushed the loan for political reasons have centered on the fact that a major investor in the company is a charitable foundation associated with George B. Kaiser, a billionaire from Tulsa, Okla., who raised $50,000 to $100,000 as a “bundler” for President Obama’s 2008 presidential campaign.

Logs show that Mr. Kaiser visited the White House on several occasions during the spring and summer of 2009, while the loan to Solyndra was being considered. Among the officials he met with were the chief of staff, Rahm Emanuel, and Pete Rouse and Valerie Jarrett, both senior advisers to Mr. Obama.

[…]While Mr. Kaiser’s connection to the Obama campaign and to Solyndra, based in Fremont, Calif., have helped draw attention to the loan, he was not a major topic of discussion at the hearing on Wednesday. Republicans did, however, press those testifying on whether the Solyndra bankruptcy offered proof that the government should not be lending to companies that have trouble raising money from private investors.

“In this time of record debt, I question whether the government is qualified to act as a venture capitalist, picking winners and losers in speculative ventures and shelling out billions of taxpayer dollars to keep them afloat,” Mr. Upton said.

ABC News reported on the contents of the e-mails: (H/T Director Blue)

The company’s solar panel factory was heralded as a centerpiece of the president’s green energy plan — billed as a way to jump start a promising new industry. And internal emails uncovered by investigators for the House Energy and Commerce Committee that were shared exclusively with ABC News show the Obama administration was keenly monitoring the progress of the loan, even as analysts were voicing serious concerns about the risk involved. “This deal is NOT ready for prime time,” one White House budget analyst wrote in a March 10, 2009 email, nine days before the administration formally announced the loan.

“If you guys think this is a bad idea, I need to unwind the W[est] W[ing] QUICKLY,” wrote Ronald A. Klain, who was chief of staff to Vice President Joe Biden, in another email sent March 7, 2009. The “West Wing” is the portion of the White House complex that holds the offices of the president and his top staffers. Klain declined comment to ABC News.

I think people need to get very clear on what “stimulus” spending is. Stimulus spending is nothing more and nothing less than taking money from the private sector job creators (“tax the wealthiest Americans”) and giving it to the people who got the socialists elected (“rebuilding our crumbling roads”).

More details from the Daily Caller.

Excerpt:

In light of the Solyndra bankruptcy, terms like “economic stimulus package” and “green jobs” now appear to be Team Obama code words for “kickbacks to political supporters so huge they would make a third-world despot green with envy.”

Solyndra is (or, more accurately, was) a California solar energy company that was the crown jewel of Obama’s first economic stimulus package, which cost $787 billion. Solyndra’s chief investor, George Kaiser, was also a bundler for Obama’s 2008 campaign, gathering over $50,000 in campaign contributions. Kaiser, together with Solyndra executives and board members, donated $87,050 to Obama’s campaign.

As part of the economic stimulus, Obama’s Department of Energy (DOE) fast-tracked a loan of $535 million (at the lowest interest rate granted by the DOE program) to Solyndra in 2009 to create green jobs. All other energy companies that received loans are paying an interest rate three to four times higher, and Solyndra got this amazing deal despite a Dun & Bradstreet credit rating that was only “fair.”

About a year later, Solyndra wasn’t making the payments and needed refinancing. In 2011, Solyndra’s CEO communicated with members of Congress, claiming that the company was on sound financial footing and would be able to repay a refinanced loan. DOE had a man attending Solyndra’s meetings, so they should have known whether the CEO was telling the truth. DOE arranged for refinancing.

Just a few months later, Solyndra laid off nearly all of its 1,100 workers and declared bankruptcy. Just a few days after that, agents of the FBI and the inspector general were raiding Solyndra headquarters and the homes of the CEO and two other executives, with search warrants.

That means that criminal charges are possible. But in the bankruptcy, DOE allowed Kaiser and other investors to recover their investments first, before DOE attempted to recover the $535 million in taxpayers’ money. What a sweetheart deal. America’s taxpayers have been left holding the bag.

Mark Levin took a call from a Solyndra worker who says that “everyone already knew that China had developed a more inexpensive way to manufacture these solar panels. Everyone knew that the plant wouldn’t work. But they still did it. They still built it.”

News

Household incomes fell and number of poor hit record 46 million in 2010

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Unemployment Rate (Not seasonally adusted)
Unemployment Rate (Not seasonally adusted)

From Reuters:

The number of Americans living below the poverty line rose to a record 46 million last year, the government said on Tuesday, underscoring the challenges facing President Barack Obama and Congress as they try to tackle high unemployment and a moribund economy.

The Census Bureau’s annual report on income, poverty and health insurance coverage said the national poverty rate climbed for a third consecutive year to 15.1 percent in 2010 as the economy struggled to recover from the recession that began in December 2007 and ended in June 2009.

That marked a 0.8 percent increase from 2009, when there were 43.6 million Americans living in poverty.

The number of poor Americans in 2010 was the largest in the 52 years that the Census Bureau has been publishing poverty estimates, the report said, while the poverty rate was the highest since 1993.

The specter of economic deterioration also afflicted working Americans who saw their median income decline 2.3 percent to an annual $49,445.

From Bloomberg:

Since the low point in the labor market downturn in February 2010, nonfarm payrolls have increased by 1.9 million, showing that without stronger growth, it will take years to recoup about 8.7 million jobs lost as a result of the recession that began in December 2007 and ended in June 2009.

The jobless rate rose to 9.6 percent in 2010 from 9.3 percent in 2009. Long-term unemployment, the percent of those without a job for 27 weeks or longer, increased to 43 percent from 31 percent, according to the Washington-based Economic Policy Institute.

This is the third consecutive annual increase in the poverty rate. Keep in mind that the Democrats took over Congress in January of 2007 and their first budget was in 2008, the beginning of the recession. But at least we had turtle tunnels to nowhere.

What about Obama’s new 447-billion stimulus? Will it create jobs?

Let’s see, using this article from the Competitive Enterprise Institute.

Excerpt:

Tom Porcelli, an RBC Capital Markets analyst, told The Wall Street Journal that he expected it to have “little” effect on hiring. “Mr. Porcelli was skeptical that the short-term employer tax breaks would prompt job growth. ‘I don’t think that you’re at the stage where small businesses are incentivized to hire,’ because demand is still so low, he said. ‘These companies are basically still trying to hunker down and hope that they’re around in the next year.’”  “Larry Schaffert, owner of Schaffert Construction, said Obama is ‘totally clueless of what it takes to run a business.’”

Business leaders do not think Obama’s plan would succeed in getting America’s economy growing, nor do they think it would get “unemployed people back to work”: “Business executives say it will take more than tax credits proposed by President Barack Obama to convince them to expand their payrolls to help get thousands of unemployed people back to work. Instead, they’d prefer an easing of the regulatory environment and an overhauling of the business tax structure, which would lead to lower operating costs.”

Employers cited in The New York Times said Obama’s jobs plan would not result in their hiring any additional employees: “David Catalano, who helped found Modea, a digital advertising company in Blacksburg, Va., said that he was wary of the president’s pledge to ask the ‘wealthiest Americans and biggest corporations to pay their fair share.’ His company was organized as an S Corporation, in which profits are passed through to shareholders, so it would face higher taxes under the president’s proposal, he said. He added: ‘My partner and I have reinvested 100 percent of the profits that our agency has made over the last five years back into the company. If the government takes a bigger share of that from me, it directly impedes my ability to grow the agency.”

[…]People should take Obama’s claims about “job creation” with a grain of salt.  His earlier claims about creating jobs turned out to be false.  The Obama administration said that if the $800 billion stimulus package passed, unemployment would not go above 8 percent, but it actually skyrocketed to 10.3 percent less than a year later.  The “green jobs” the Obama Administration promised to create in the stimulus package are  largely non-existent. Indeed, the stimulus package’s green-jobs provisions ended up inadvertently outsourcing American jobs to China.   As the Associated Press notes, Obama is also not leveling with the American public when he minimizes the budget-busting nature of his so-called “American Jobs Act.”  That lack of fiscal honesty is nothing new for Obama, who falsely promised  a “net spending cut” in 2008, only to immediately propose massive budget increases once he was elected, including proposed budgets that would add $4.8 trillion to the national debt.

This is from Hans Bader, so I removed all his links – he likes to put lots of links to lots of facts, because he’s a lawyer. You have to click on his post to get all the links.

I don’t think numbers like those will help the Democrats. I am watching the election results come in for Anthony Weiner’s seat right now and the Democrat has lost in BROOKLYN and QUEEN’S. Can you believe that? New York is Republican. I wonder if M.C. Spinster is still a Democrat.

News

EPA regulations cause the loss of 500 energy sector jobs

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From the Heritage Foundation.

Excerpt:

It was sadly ironic that Texas energy company Luminant announced it would lay off 500 employees on the same morning that President Obama unveiled legislation designed to promote job growth. The company said that a new rule from the Environmental Protection Agency will force it to cease operations at two electricity generating plants, and close three coal mines.

“We have hundreds of employees who have spent their entire professional careers at Luminant and its predecessor companies,” Luminant CEO David Campbell said in a news release. “At every step of this process, we have tried to minimize these impacts, and it truly saddens me that we are being compelled to take the actions we’ve announced today.”

The company cited the EPA’s new cross-state pollution rule as the impetus for the decision, and noted that it had worked to identify other means of reducing emissions, but that “meeting this unrealistic deadline also forces us to take steps that will idle facilities and result in the loss of jobs,” Campbell said.

Campbell also announced that the company has filed a lawsuit against the EPA in an effort “to achieve [EPA emissions] goals without harming critically important Texas jobs and electric reliability.” The suit seeks to block the cross-state pollution rule for Texas companies, and to grant a stay to Texas companies to prevent them from having to comply with sulfur dioxide and nitrogen oxide emissions standards by the existing January 1, 2012 deadline.

Can we afford to lose jobs in a recession?