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Friday, March 23, 2012

Unending Failure

I write a great deal (probably too much) about the Obama "green energy" agenda and how it has failed, so I decided just this morning to hold off on any further posts on the subject for a while. Then, of course, news comes along that forces me to change my mind. The Wall Street Journal reported just today that the Department of Energy has fully one-third of all of the "green energy" loans it has made on an internal watch list for violations of loan agreements. Let me put that in context: a bank which had one-third of its loan portfolio non-performing would likely be shut down by the banking regulators as insolvent. In fact, a bank with 5% of its loans in that category would probably fail. Obama's energy gurus have 10 out of 32 loans for electric vehicles or renewable energy currently suspected of non-compliance. It is like the Hall of Fame of Failure.

Some day, the government will realize that it cannot create successful companies where there is no underlying demand. Expensive energy and poor performance and expensive vehicles have no market. Giving government funds to such entities is guaranteed to fail.

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