When George W. Bush was president, one thing we didn’t have to worry about was the media doing their jobs in the watchdog department. Frequently the press went overboard in this regard, but when it comes to protecting democracy, an over-zealous media is always preferable to a lapdog media so enamored with those in power that they lose their curiosity, skepticism and willingness to dig or ask questions for fear of what they might find.
In the case of the brewing Solyndra scandal, this is apparently what happened. All the signs, warnings, and red flags any reporter or news outlet worth his or her salt could possibly ask for were … everywhere.
A quick Lexus Nexis search informs us that the story of the Solyndra collapse was being told a year prior to the company filing bankruptcy in both local and trade media. Why the mainstream media, the same clowns who had time to pore through Sarah Palin’s emails and put nearly a dozen fact-checkers on her book, didn’t find any of this interesting is a breathtaking dereliction of duty.
On March 29, 2009, President Obama’s Energy Secretary Steven Chu announced a $535 million taxpayer loan to Solynda.
On September 6, 2011, Solyndra filed for bankruptcy.
Below is a quick snapshot of what was known by anyone paying attention in-between the federal loan and the bankruptcy. As you’ll see, these were not difficult dots to connect unless you were in “see no negatives about Obama” mode.
April 3, 2010 – San Francisco Chronicle: “Solyndra’s finances raise IPO questions”
Auditors noted Solyndra’s sizable losses – $518.7 million in the past three years – and its accumulated deficit of $557.7 million. Solyndra, the auditors wrote, “has suffered recurring losses from operations[.][There’s] doubt about its ability to continue as a going concern.”
June 21, 2010 – Contra Costa Times (California): “Solyndra’s IPO cancellation seen by some as red flag for solar industry”
Why are investors nervous about Solyndra? The company has lost $558 million since its inception …
The Solyndra struggles also may be an embarrassment for federal officials. “Some people are now saying that Solyndra is too big to fail,” Mehta said. “It looks very bad[.]
July 27, 2010 – Contra Costa Times (California): “Solyndra’s top boss steps down as CEO of Fremont solar company”
It also is unclear whether the new CEO could steer Solyndra to brighter harbors, analysts said. Plus, Harrison is a newcomer to the solar industry despite his chip manufacturing expertise.
November 3, 2010 – San Jose Mercury News (California): “Solyndra to hold off on ambitious hiring plan”
In May 2010, Obama toured the Solyndra facilities in Fremont. The company’s fortunes dimmed soon after. In June, Solyndra canceled its IPO. …It’s alarming for Solyndra to be cutting back when others are expanding.” In the announcement Wednesday, Solyndra said it will close an existing factory [.]
November 3, 2010 – Contra Costa Times (California): “Solar panel maker Solyndra scales back expansion plans”
[I]nstead of having 2,000 workers in Fremont, Solyndra will cap its work force at 1,000, which is about the current level.
November 21, 2010 – Human Events Online: “Why the Government Should Stay Out of Green Energy”
Headquartered in the San Francisco Bay Area, Solyndra has been a magnet for venture capital cash from the Silicon Valley.However, just before Solyndra’s promising glow of success began to fade, the last big investor stepped into the boardroom: The Obama Administration. And man, did the American taxpayer get played.
As a local I watched Solyndra successfully raise nearly a billion dollars in private equity financing between 2005 and 2009. Simultaneously, I witnessed the company go on a wild infrastructure spending spree, throwing hundreds of millions into an over-the-top, designer-rich, state-of-the-art manufacturing facility–which is not inexpensive to do in the Bay Area. Real estate prices remain the highest in the country there, and construction costs are exorbitant too. Simply constructing a shell to house a manufacturing plant costs at least $300 per square foot (Solyndra’s was likely much more); and that figure doesn’t include the specialized manufacturing equipment needed to build Solyndra’s proprietary solar panels. By locating the plant next door in Nevada they could have reduced their construction costs by at least 50 percent.
After Solyndra built the first phase of its plant, it began spending another $733 million on phase two: a 600,000-square-foot addition. That’s where Team Obama stepped in.
January 30, 2011 – San Jose Mercury News (California): “Fremont’s high-flying Solyndra hits a rough patch”
[After receiving a] $535 million loan guarantee from the Department of Energy, Solyndra is struggling and analysts can’t see a way forward[.] …Brigantine Advisors, says excessive spending is just one of Solyndra’s problems. Another is that there doesn’t appear to be much demand for its product.
February 28, 2011 – Contra Costa Times (California): “Solyndra lands $75 million loan to restructure debts and expand efforts”
[Headline speaks for itself.]
March 7, 2011 – Inside Energy With Federal Lands: “DOE gives Solyndra more time to repay $535M loan”
But the prospectus that Solyndra filed with the SEC last March, as well as other developments, raise questions about the company’s financial situation. According to Solyndra’s prospectus, for example, the company has never turned a profit.
July 25, 2011 – Inside Energy With Federal Lands: “CEO of Calif. solar firm heads to Hill to defend $535M in taxpayer-backed aid”
[I]n issuing the $535 million loan guarantee to Solyndra. The new Fab 2 factory, which would not have been built otherwise, likely kept Solyndra alive[.]
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In a sensible world, the first warning sign that would’ve caught the attention of our Media Overlords would’ve been the Obama administration rushing in where venture capitalists (and the Bush administration) feared to tread — a company that had never turned a profit.
Over a half-billion (with a “b”) dollars in taxpayer money thrown at a company partially owned by billionaire George Kaiser, who just so happens to be a major fundraiser for the President — and the media didn’t even bother to track what happened or pick up on the many, many stories that not only indicated something was going horribly wrong but also that, with our money, the White House had made a lousy bet that benefited their campaign contributors.
Who watches our corrupted media watchmen?
P.S. If you’re looking for redemption MSM, here’s a thread for you to pull on … a Green Jobs Czar named Van Jones.
There are still plenty of dots to connect.
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