The Solyndra Story Just Keeps Getting Worse
Posted: September 18, 2011 Filed under: 2012 presidential campaign, Team Obama, U.S. Economy, U.S. Politics | Tags: 2008 presidential campaign, 2012 presidential campaign, bundlers, Department of Energy, fundraising, George Kaiser, Solyndra, Steve Spinner, The Chicago Way 3 CommentsIt turns out that two major Obama 2008 fundraisers benefited from the decision by the Department of Energy to go ahead with a risky $535 million loan to Solyndra, the solar energy company that filed for Chapter 11 bankruptcy earlier this month.
Steve Spinner, who helped monitor the Energy Department’s issuance of $25 billion in government loan guarantees to renewable energy projects, was one of Obama’s top fundraisers in 2008 and is raising money for the president’s 2012 reelection campaign.
Spinner did not have any role in the selection of applicants for the loan program and, in fact, was recused from the decision to grant a $535-million loan guarantee to Solyndra Inc. because his wife’s law firm represented the company, administration officials said Friday.
But Spinner’s role as a top official in the Energy Department program, which had not been previously revealed, is likely to spur new inquiries into whether political influence played a role in the handling of the “green” energy fund. Solyndra faces a congressional probe, a criminal investigation and separate internal inquiries at the Energy and Treasury departments.
Steve Spinner raised $500,000 for the Obama campaign in 2008, and he is currently organizing a fundraising drive for 2012 called “Technology for Obama.” Spinner is also a Senior Fellow at the Center for American Progress. According to the LA Times, Spinner praised the Solyndra loan in a piece at the Center for American Progress on July 13. He did not disclose his involvement with the loan program in that article.
We’ve already heard about the second major Obama donor involved with Solyndra, George Kaiser.
The largest investments in Solyndra were funds operated on behalf of the family foundation of billionaire George Kaiser, another major fundraiser for Obama in 2008. Kaiser has denied personally investing in the solar energy company or talking to White House officials about the loan.
But I hadn’t heard before that when it looked like Solyndra might go bankrupt in February of 2011, the Obama administration restructured the loan so that in case Solyndra did go bankrupt, a Kaiser investment company and another private investor associated with the Walton family would be reimbursed before taxpayers.
Under terms of the February loan restructuring, two private investors — Argonaut Ventures I LLC and Madrone Partners LP — stand to be repaid before the U.S. government if the solar company is liquidated. The two firms gave the company a total of $69 million in emergency loans. The loans are the only portion of their investments that have repayment priority above the U.S. government.
Argonaut is an investment vehicle of the George Kaiser Family Foundation of Tulsa, Okla. The foundation is headed by billionaire George Kaiser, a major Obama campaign contributor and a frequent visitor to the White House. Kaiser raised between $50,000 and $100,000 for Obama’s 2008 campaign, federal election records show. Kaiser has made at least 16 visits to the president’s aides since 2009, according to White House visitor logs.
Madrone Partners is affiliated with the Walton family, descendants of Wal-Mart founder Sam Walton. Rob Walton, the eldest son of Sam Walton, contributed $2,500 last year to the National Republican Congressional Committee.
In addition,
Newly released emails show the White House was worried about the likely effect of a default by Solyndra on Obama’s re-election campaign.
“The optics of a Solyndra default will be bad,” an OMB official wrote in a Jan. 31 email to a colleague. “The timing will likely coincide with the 2012 campaign season heating up.”
The budget official, whose name is blacked out in the email, wondered whether Solyndra should be allowed to restructure its loan.
“Questions will be asked as to why the administration made a bad investment, not just once (which could hopefully be explained as part of the challenge of supporting innovative technologies), but twice (which could easily be portrayed as bad judgment, or worse),” the email says.
According to conservative Chicago Tribune columnist John Kass, the “Solyndra scandal reeks of the Chicago Way.”
Federal investigators want to know what role political fundraising played in the guarantee of the questionable loan. Washington bureaucrats warned the deal was lousy. And White House spokesmen flail desperately, like weakened victims in a cheesy vampire movie.
So forget optics. What about smell? It smells bad, and it’s going to smell worse.
Or, did you really believe it when the White House mouthpieces — who are also Chicago City Hall mouthpieces — promised they were bringing a new kind of politics to Washington?
[….]
It’s the Chicago Way, but instead of a paving or trucking contract, it’s a “green” solar panel contract. The company received a $535 million loan.
I guess he means pay for play and the taxpayers get stuck with the bill. Based on what I know so far, I can’t say I disagree with Kass.
Thursday Reads
Posted: September 15, 2011 Filed under: morning reads, U.S. Economy, U.S. Politics | Tags: al Qaeda, Ali H. Soufan, Clint Eastwood, deadbeat dad, Dean Baker, Dick Cheney, Donald Rumsfeld, Douglass Rushkoff, Fareed Zakaria, FBI, Gay Marriage, George W. Bush, IRAQ, Rep. Joe Walsh, Torture 29 CommentsGood Morning!! I have a few interesting reads for you today. There isn’t a lot to be happy about in the news these days, but I hope that some of my picks will bring a smile to your face.
Maybe this will do it: Clint Eastwood: ‘I don’t give a f*ck’ if gays marry. The superstar actor and director told GQ Magazine that he considers himself an Eisenhower Republican, and he doesn’t sound too happy with the people running the party these days.
“These people who are making a big deal out of gay marriage?” Eastwood opined. “I don’t give a fuck about who wants to get married to anybody else! Why not?! We’re making a big deal out of things we shouldn’t be making a deal out of.”
“They go on and on with all this bullshit about ‘sanctity’ — don’t give me that sanctity crap! Just give everybody the chance to have the life they want.”
[….]
“I was an Eisenhower Republican when I started out at 21, because he promised to get us out of the Korean War,” he told GQ. “And over the years, I realized there was a Republican philosophy that I liked. And then they lost it. And libertarians had more of it. Because what I really believe is, let’s spend a little more time leaving everybody alone.”
Go ahead, make my day, Clint.
This story is a few days old, but it made me smile: Zakaria destroys Rumsfeld’s Iraq war talking points. Zakaria interviewed Rumsfeld on September 11, and the old goat still tried to claim that al Qaeda was in Iraq before the U.S. invaded.
“There’s no question that al Qaeda and Zarqawi and people were in Iraq,” Rumsfeld argued. “They aggregated there.”
“If we hadn’t invaded, they wouldn’t have been there,” Zakaria pointed out.
“We don’t know that,” Rumsfeld insisted. “You don’t know that. I don’t know that.”
“But they went in to fight us. So since we weren’t there, why would they have gone into Iraq?” Zakaria countered.
“Why have they gone into Yemen and Somalia?” Rumsfeld asked. “Why do al Qaeda go anywhere? They go where it’s hospitable.”
“Right, and Iraq hadn’t been hospitable,” Zakaria said.
ROFLOL! Why is this joke of a man able to get a book contract? Why does anyone want to put him on TV? He’s a complete loon.
Speaking of deserving people getting their comeuppance, deadbeat dad and Tea Party Rep. Joe Walsh was “scolded” by a Chicago judge yesterday for failing to support his children.
A Chicago judge issued a preliminary ruling Wednesday against U.S. Rep. Joe Walsh (R-Ill.) in his child-support dispute with his ex-wife, ordering the Tea Party favorite to explain why he appears to be $100,000 behind in child-support payments.
Vega did issue a “rule to show cause” — which means Walsh has to tell the court why he shouldn’t be held in contempt for falling so far behind in child support over the past five years.
Laura Walsh argues her ex-husband owes more than $100,000, a number the congressman disputes. But Vega’s ruling means that the burden is now on the congressman to prove that he doesn’t owe the money, attorneys for both Walshes agree.
Laura Walsh has gone into court on numerous occasions since filing for divorce in 2002, seeking court orders to have her ex-husband meet his court-ordered child-support obligations.
What a slug that guy Walsh is!
I came across this fascinating piece by Sarah Jaffe at Alternet: Are Jobs on Their Way to Becoming Obsolete? And Is That a Good Thing? It’s a long read, but I highly recommend you take the time. Here’s just a sample:
Media theorist and author of Life, Inc.: How the World Became a Corporation and How to Take it Back Douglas Rushkoff ruffled some feathers this week when he dared, at CNN.com of all places, to ask that question. It seemed, perhaps, gloriously insensitive to the plight of unemployed workers, of union workers at the U.S. Postal Service, who are struggling like so many others to stay afloat in an uncertain economy while they’re demonized in the press as greedy for wanting a decent job.
[….]
He argues that perhaps we’re going about it backward when we call for jobs, that maybe it’s not a bad thing that technology is replacing workers, and points out that actually, we do produce enough food and “stuff” to support the country and even the world—that, in fact, we produce too much “stuff.”
He alternately harkens back to a past before jobs, when many people worked for themselves on a subsistence level, and forward to a future where we are all busy making games and books and communicating with one another from behind computer screens, with the hours we have to work dwindling.
Rushkoff’s ideas really resonated with me. I haven’t worked a full-time job since 1986, and although I don’t have a lot of money, I have never regretted my decision to quit my 9-5 job and find some meaning in my life by doing things that made me happy. I did find that meaning, first by working on my own problems and issues and then by helping and being a caregiver for my elderly ex-mother-in-law in return for a place to live.
Because my expenses were low, I was able to return to college and get a bachelor’s degree, then go on to graduate school and earn an MA and a PhD. During graduate school and after, I have worked as a teaching assistant and have taught a number of courses. But now that I’m finished with my education, I’ve been reluctant to search for a full-time teaching job.
Lately I’ve survived mostly on my Social Security and selling my huge accumulation of books on the internet with a few teaching jobs thrown in. I will also have another small source of retirement income from my days as a full-time office worker when I choose to take it. I’m enjoying the time I’ve had to follow politics closely and blog about it. I’ve never been all that ambitious. I went to school simply for the joy of learning. I do want to find ways to give back, but I don’t care that much about making piles of money. I might have to check out Rushkoff’s book.
At Truthout, I learned that liberal economist Dean Baker has also written a book, and you can even download it free! The book is called “The End of Loser Liberalism: Making Markets Progressive. From the Truthout article by Keane Bhatt, Dean Baker: Why Didn’t We Make These Guys Run Around Naked With Their Underpants Over Their Heads?
KB: Your book argues that financial crises don’t have to lead to “lost decades” of massive pain and suffering and, even more importantly, that the US never even experienced a true financial crisis.
DB: There’s a lot of real sloppy thinking here. The main promulgators of this view are Kenneth Rogoff and Carmen Reinhart and they say that they look back over 600 years of history and find that in almost all these cases, countries took over a decade to recover. It’s painful, because I’d like to think – and one would expect that they’d like to think – that we know more economics than we did 600 years ago. If we don’t – and we really haven’t learned anything – why do you guys get paid high salaries? I say that only partially facetiously. If we were to look back through time, a very high percentage – probably the majority – of newborn babies didn’t survive to age 5. You’d be an idiot to say that the past trend holds today – we have modern medicine, so we have a very good reason to expect that the overwhelming majority of children will survive to age 5. We have learned something in economics over six centuries, so it’s not some curse, they’re concrete problems.
Finance gets very mysterious and complicated. There are instruments that are hard for people to understand; they’re hard for me to understand. The basic story is not complicated: we need demand. As I say in the book, there’s very little about the financial crisis that explains where we are today. People who want to buy homes have no problem getting credit – you can’t go 0% down, but someone who, say, 15 years ago was able to get a home mortgage can expect to get a home mortgage today. In terms of businesses, the US, unlike Japan, has a very large capital market where firms can directly access capital through commercial paper and bond financing. The current rates are extraordinarily low in both nominal and real terms. So the idea that the banks being crippled would impede the economy doesn’t follow when hundreds of the largest firms can go straight to the market and get financing.
Let’s imagine that the big firms can get credit but the small ones can’t. That would create a situation in which the big firms are running wild, grabbing market share at the expense of smaller competitors crippled by lack of access to capital. This is not happening.
There’s a survey that the National Federation of Independent Business has done for a quarter century that asks businesses what are the biggest problems to expanding. And currently, almost no one mentions finance – either access or cost. So clearly the problem is not finance.
Read the whole interview if you can–it’s well worth it.
I’m going to end with a story that won’t necessarily make you smile, but it’s a story that puts the lie to the Bush/Cheney claims that torture helped make us safer. I think that’s a good thing. In fact, author and former FBI interrogator Ali H. Soufan argues that the opposite is true, and that in fact 9/11 could have been prevented with traditional interrogation methods. Watch his interview with Keith Olbermann:
So…what are you reading and blogging about today?












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