Mon Oct 8, 2012, 03:17 PM
cleduc (644 posts)
A comment on Romney's lie about Green jobs & $90 Billion
(if the amount of text is overhwhemming, page down to the bolded comment to get a key point)
FactCheck: Romney's '$90 Billion' green energy tax break whoppers
Within that article, they said and I have confirmed:
As The New York Times puts it, the bottom line, so far, is that only three of the 33 companies that received loans have failed — representing less than 2 percent of money budgeted.
DOE link above says 34.5 billion was budgeted to loan money to 33 companies for greeen projects and lists the companies
Of those, 3 went into bankruptcy and one of those companies is being sold.
Solyndra’s final liquidation plan estimated that the government will recover just $24 million of the $527 million that taxpayers lent to the company.
The company (Abound Solar) has used about $70 million of the loan guarantee, and after bankruptcy liquidation the loss to taxpayers is estimated to be $40 million to $60 million, Damien Lavera, a DOE spokesman, said in a statement.
Rockland's offer for Beacon's assets, including a 20-megawatt flywheel energy storage plant in New York, combined $5.5 million in cash with a promissory note of $25 million payable to the Department of Energy.
and the plant will continue to operate
Out of $34.5 billion in loans for this Recovery Act program, worst case, 1.67% has been lost in bad loans so far. DOE budged for losing 7.2% and are well under that to date.
Let's put some perspective on that:
Romney at Bain: Big Gains, Some Busts
The Wall Street Journal, aiming for a comprehensive assessment, examined 77 businesses Bain invested in while Mr. Romney led the firm from its 1984 start until early 1999, to see how they fared during Bain's involvement and shortly afterward.
Roughly 9% of the Recovery Act's $34.5 billion Clean Energy loan program companies have failed. When the WSJ looked at 77 Bain businesses under Romney, 30% failed or lost Bain's money (rough equivalence to DOE). The moral of that story is venture capitalism has risks - even for government. So far, I like Obama's numbers better than Mitt's when he was at Bain though Obama's numbers have not stood the same 8 year test of time and are very likely to get worse - move closer to Mitt's.
A picture of some of the successes with the Recovery Act they've had can be read about here in this Jan 2012 report:
A few hightlights:
- weatherization program has helped more than 650,000 low-income families save an average of $437 a year
- supporting between 40,000-50,000 direct jobs each quarter since Summer 2010.
- projected to reduce 100 mile battery cost by ~70%
- funded over 20,000 renewable energy projects nationwide
- on-track to deploy 15.5 million total smart Grid meters
- reduce the nation’s total nuclear waste footprint by 69%
- there's more in the report
NOTE: I looked for information on government grants/tax credits because there have been some bankruptcies there. I haven't found a good list by company name & dollar amount yet. As the report states, some of these projects were "funding high-risk, high payoff, game-changing research and development projects to meet the nation’s long-term energy challenges." and so the failure rate of those, even for a venture capitalist, is going to be even higher and was to be expected. If I can find more on that that helps, I'll pass it along.
The big thing that bugged me what how hypocritical Romney was being as he knew first hand from his years at Bain how this investment/loan/grant stuff plays out with companies - particularly those embarking on new frontiers.
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