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Crony Capitalism Alert: Ex-Im Bank Props Up Failing Solar Company with Big Loans

DearJohn Wrote: Jul 24, 2012 9:48 AM
It amazes me how uninformed the commenters on this forum are. Walmart and the Chinese do not own First Solar. Some founders of Walmart are also large shareholders in First Solar, but that does not in any way make Walmart an owner of First Solar. Loan guarantees are not a loan of money. The guarantees provide a backstop in case of project failure, which buy the way has never happened with any of First Solar's utility scale projects. The benefit of the guarantee is to lower the financing costs for the project. In every case to date, once the project is under construction the project is sold to a third party, and the loan guaranty is then no longer needed. The net result is no money ever spent by US government and jobs for US manufacturing.
tim87 Wrote: Jul 24, 2012 11:30 AM
PART 2: Lastly, you are being intellectually dishonest if you allege that the fact that this loan guarantee made for purposes of artificially propping up another failed Obama croney oufit (First Solar) reflects anything but an arms length transaction. This is nothing more than a costly (to the US taxpayers) propaganda move by the WH to keep from having yet ANOTHER GREEN FRAUDSTER GO BELLY UP! Based upon FS's most recent financials, there is no way ths company can possibly survive without some kind of croney based cash injection...that is being provided by We the People! How stupid does the WH think the public is??? Frankly with Obama polling still in the mid 40s, I, too, am beginning to wonder.
tim87 Wrote: Jul 24, 2012 11:26 AM
As a CPA, I will conceded that the loan guarantee is but a CONTINGENT liability, BUT...as you correctly pointed out, it is called upon if the borrower cannot repay the debt. Factually, all correct. Here is the problem with your argument though. First the DOE (of Solyndra fame...as well as several other failed GREEN companies) generally made loan guarantees in those cases as well. Guess what...They were S$$itty bad loans and we the Taxpayers footed the bill. Name ONE green energy loan funded or guaranteed by DOE that has not already defaulted or is on the road to default...Another way to ask...name one successful DOE loan or backstop that can by objectively viewed as a success. Part 2 above (or below)
Michael1364 Wrote: Jul 24, 2012 11:10 AM
Sure...
Just like Solyndra didn't lose any tax money either.
If the company goes bankrupt, which it must as it is failing without govt money, then all loans made will be paid with tax money.
This is crony capitalism at its worse.
It amazes me how much bs some people post.
First Solar is the recent beneficiary of guaranteed loans from the Export-Import Bank. The Export-Import Bank is a government corporation that operates within the Executive Branch, with the mission of financing the foreign purchase of domestic goods. The unaccountable bank has rightly been labeled as corporate welfare by House conservatives, but was reauthorized by the Republican majority a few months back. The bank’s recent loan guarantee to support First Solar calls into question the wisdom of that reauthorization. First Solar, as pointed out by Ashe Schow at Heritage Action , is the last company a government...