John Ransom

As the world endures yet again another mass hysteria pandering by the Obama administration, I'm tempted to feel sorry for liberals.

There's been lots of bad news for them.

Earlier today I wrote about the CBO forecast that says that healthcare and Social Security will bankrupt the country. Then there was news that another electric car company is filing for Chapter 11 bankruptcy protection.

From Reuters:

Ecotality Inc <ECTY.O>, a maker of charging stations for electric cars that won a $99.8 million grant from the U.S. Department of Energy four years ago, has filed for bankruptcy protection and said it plans to auction its assets next month.

The San Francisco-based company is among a growing number of U.S. alternative-energy companies that have struggled or succumbed amid consumer resistance to the high cost and restricted driving range associated with electric vehicles.

This on top of news that the Obama administration will be selling its loans in Fisker Automotive, which secured $192 million from the administration under the green car boondoggle. Fisker has been in financial trouble since 2011 and has lost 75% of its workforce. It also hasn't manufactured any cars.

From the AP:

The Energy Department says it is selling a $192 million loan made to struggling electric car maker Fisker Automotive Inc.

The sale, to be held next month, is the latest setback for a half-billion-dollar loan guarantee offered to the California car maker in 2009 as part of the Obama administration's program to promote green energy.

The administration suspended the loan in 2011, after Fisker failed to meet a series of Energy Department benchmarks. Fisker has not produced a vehicle in more than a year and has laid off three-fourths of its workers.

Fisker had received $192 million before the loan was frozen. The DOE says it has recouped about $28 million since then; the auction will allow the government to collect as much of the remaining $164 million as possible.

My bet would be that they get less than $.10 on the dollar. I don't know what Fisker has left in assets but it's got to be very puny. My father once auctioned off the remnants of a nuclear power facility in Washington state that went into bankruptcy. There's probably as much demand today for defunct to solar equipment as there was for defunct nuclear equipment back in the 1970s.

To put an exclamation point on the day for liberals and their misguided energy policies, consultant IHS just came out with a report saying that light, tight oil outside of North America could reach recoverables of 300 billion barrels.

Take it from the top Reuters:

Commercially recoverable reserves of tight oil in the rest of the world could be double or more those of North America and the geology of the 23 best opportunities is better in some cases, according to a new study.

Okay so remind me again Obama: Why are we building electric cars now?

Oh that's right: It was for your donors.

Gottcha.


John Ransom

John Ransom’s writings on politics and finance have appeared in the Los Angeles Business Journal, the Colorado Statesman, Pajamas Media and Registered Rep Magazine amongst others. Until 9/11, Ransom worked primarily in finance as an investment executive for NYSE member firm Raymond James and Associates, JW Charles and as a new business development executive at Mutual Service Corporation. He lives in San Diego. You can follow him on twitter @bamransom.