please check out the anti-mandate news »

« prev   random   next »

0
1

Counterpoint: Criticizing Loan Guarantees to Solyndra is Missing the Boat

By corntrollio follow corntrollio   2011 Oct 11, 2:54am 1,282 views   3 comments   watch   nsfw   quote   share    


http://www.kqed.org/a/perspectives/R201110110735

Executive Summary:
It's just talking points.
TeabaggersOpponents rarely complain about oil and gas subsidies, which are 13X those for renewables. [changed from Teabaggers to Opponents, since Vicente pointed out that it's broader than that]
Most other government loan guarantees in renewables have performed quite well and have attracted almost 1:1 private investment.
Solar PV creates 10-20 times as many jobs for the same investment dollars as coal, natural gas, or nuclear.
Solyndra failed because the solar sector was so successful that it drove down costs significantly and Solyndra's product was too expensive.

I would also offer that it sounds like government loan guarantees are so far likely batting better than VCs, who are happy if 3 in 10 investments do well -- sometimes companies fail, and VC-sponsored companies fail in incredibly large numbers.

1   Vicente   ignore (0)   2011 Oct 11, 4:06am     ↓ dislike (1)   quote   flag      

This is not just a Teabagger issue.

It's more of a conservative platform to indict "green" investment. The ability to pin it on Obama is just a bonus.

2   EBGuy   ignore (0)   2011 Oct 11, 4:32am     ↓ dislike (0)   quote   flag      

Controllio, you were doing all right until you started editorializing. I get your point but the fact of the matter is VCs are not making loans. They get equity stakes for their investment.
The only other thing I would add is that it appears solar is at a tipping point. The evidence is the money that VCs are throwing at solar leasing companies like SunRun and SolarCity. They make it possible for folks without sufficient capital to install panels on their homes. This should be a no brainer for anyone with AC.
Also, in this low interest rate environment, putting your money to work on your roof makes more sense than having it languish in a savings account.

3   corntrollio   ignore (1)   2011 Oct 11, 5:10am     ↓ dislike (1)   quote   flag      

EBGuy says

Controllio, you were doing all right until you started editorializing. I get your point but the fact of the matter is VCs are not making loans. They get equity stakes for their investment.

Sure, but that strengthens my argument. The VC is more likely to lose everything than the government, even though the VC is more likely to have direct upside (through an investment doing well). The government can get indirect upside through tax revenue and has been doing so.

If the government took equity stakes in renewables, you'd have teabaggers bitching to high heaven, even though taking equity stakes is perfectly acceptable for failed banksters and other fraudsters and failed businesses like AIG.


about   best comments   contact   one year ago   suggestions