Obama’s Solyndra folly

Political graft is nearly as old as the institutions of American graft itself. While thought by historians to have peaked around 1900 with the blatant operation of political machines by such pit bosses as New Yorker William M. Tweed, charges of cronyism have survived the ensuing decades; indeed, it is difficult to recall a single administration which did not face accusations of performing not in the name of the commonwealth of the nation, but rather a select group of private beneficiaries. Such is the controversial core of President Barack Obama’s current attachment to solar technology firm Solyndra. According to his Republican challengers and others, Obama had improper relationship with Solyndra that cost in excess of one-half billion dollars.
Presidents and politicians of lower castes have found various means of rewarding their benefactors, many of which have been fully legal operations codified by local, state or federal law. This is precisely how Obama allegedly pumped cash into Solyndra; the solar company had previously applied under the administration of George W. Bush (Obama’s most immediate predecessor) for a federal loan from the Department of Energy, an act made possible by the 2005 Energy Policy Act. Up to this point, all that had occurred was by the letter of the law. The situation became murkier when, despite initial DOE rejection and concerns about Solyndra’s liquidity, the Obama administration conditionally approved the loan in early 2009. Just two short years later, a restructuring of the loan had failed, and Solyndra filed for Chapter 11 Bankruptcy.
Given the size of the loan involved (approximately $535 milllion) and the nebulous nature of the process which led the Obama’s administration to approve the previously denied application, questions abound concerning President Obama’s connection to the company and exactly what happened to so quickly reduce Solyndra’s capital. Though some memorandums have been redacted and released, they have done little to illuminate this situation. Independent investigations by the Treasury and Federal Bureau of Investigation are ongoing, but an examination by the Washington Post has already concluded that this was not an apolitical loan, and that multiple warnings about Solyndra’s solvency were repudiated in order to grant the loan.
Should this massive misstep by the Obama administration spell the end of federal grants for solar technology, it is difficult to imagine the field growing at the rate previously projected. Few loans are of the size of that received by Solyndra, but even smaller firms that receive only a few million dollars for research and development are crucial to technological advancement. As the country emerges from the Recession of 2008, private investors have become more skeptical and are thus less willing to lend large sums; in order for progress to continue unabated, it is necessary for the government to sponsor some projects. Further, at least one source examining the Solyndra situation asserts that the company’s financial woes are emblematic of a larger pattern in the field of solar technology.
There does seem to be some impropriety in the actions of the Department of Energy and President Barack Obama concerning their $535 million loan to the solar technology company Solyndra. One major newspaper has already indicted the Administration of misconduct, but the proverbial “jury” is out until the federal investigators return their results.

Obama Aides and Solyndra

Sources:

http://www.washingtonpost.com/blogs/ezra-klein/post/five-myths-about-the-solyndra-collapse/2011/09/14/gIQAfkyvRK_blog.html
–Five Myths about the Solyndra collapse from the Washington Post

http://www.solyndra.com/
–Much of my information about Solyndra itself as a corporate entity was gained directly from their website, so it’d be prudent to list them as a source.

http://www.washingtonpost.com/solyndra-politics-infused-obama-energy-programs/2011/12/14/gIQA4HllHP_story.html
–Another article from the Washington Post, a very reputable paper and one of the foremost investigators of the Solyndra scandal. Their accounts of the complex situation was invaluable in creating this blog post.