{"id":11312,"date":"2011-09-16T15:37:19","date_gmt":"2011-09-16T19:37:19","guid":{"rendered":"http:\/\/cfif.org\/v\/freedom_line_blog\/?p=11312"},"modified":"2011-09-16T15:37:19","modified_gmt":"2011-09-16T19:37:19","slug":"wsj-fed-loan-ruined-solyndra","status":"publish","type":"post","link":"https:\/\/cfif.org\/v\/freedom_line_blog\/11312\/wsj-fed-loan-ruined-solyndra\/","title":{"rendered":"WSJ: Fed Loan Ruined Solyndra"},"content":{"rendered":"<p>While <a href=\"http:\/\/www.newsmax.com\/InsideCover\/obama-solyndra-shelton-cronyism\/2011\/09\/16\/id\/411300\" target=\"_blank\">congressional investigators continue to probe<\/a> into whether the Obama Administration broke federal laws in awarding a $535 million loan to now-bankrupt Solyndra, the <em>Wall Street Journal <\/em>details how <a href=\"http:\/\/online.wsj.com\/article\/SB10001424053111904491704576572872256772948.html?utm_source=Newsletter&amp;utm_medium=Email&amp;utm_campaign=Heritage%2BHotsheet \" target=\"_blank\">crony capitalism prolonged a series of bad decisions<\/a> by the solar company\u2019s management.<\/p>\n<p>Here\u2019s the money paragraph:<\/p>\n<blockquote><p>In mid-2009, Solyndra had a choice: It could hunker down with its existing factory and try to slash costs to meet competition, drawing on additional private capital as needed, according to the people familiar with the company. Or, with a loan from Uncle Sam, it could gamble and build a brand-new, bigger factory in a bid to gain economies of scale and dominate the market.<\/p><\/blockquote>\n<p>Choosing to gamble, Solyndra overbuilt its manufacturing capacity, and continued rushing to market a product that was not marketed \u2013 or priced \u2013 correctly.<\/p>\n<p>As the <em>WSJ<\/em> article makes clear, not all of Solyndra\u2019s problems were the result of inept management.\u00a0 An unexpected drop in the price of a competing product turned Solyndra\u2019s profitability upside down.\u00a0 The market was sending Solyndra\u2019s management a message to rethink their strategies.\u00a0 The Obama Administration bypassed that all-important-process with huge amounts of money to continue pursuing failure.<\/p>\n<p>Come to think of it, that pretty much sums up the president\u2019s thinking when it comes to government spending.\u00a0 No wonder his new jobs plan is <a href=\"http:\/\/pittsburgh.cbslocal.com\/2011\/09\/15\/senator-casey-breaks-with-president-over-jobs-bill\/\" target=\"_blank\">dead on arrival<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While congressional investigators continue to probe into whether the Obama Administration broke federal laws in awarding a $535 million loan to now-bankrupt Solyndra, the Wall Street Journal details how crony capitalism prolonged a series of bad decisions by the solar company\u2019s management. Here\u2019s the money paragraph: In mid-2009, Solyndra had a choice: It could hunker [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2710,195,1877,27,3043],"class_list":["post-11312","post","type-post","status-publish","format-standard","hentry","category-posts","tag-crony-capitalism","tag-energy","tag-green","tag-jobs","tag-solyndra"],"_links":{"self":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/11312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/comments?post=11312"}],"version-history":[{"count":3,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/11312\/revisions"}],"predecessor-version":[{"id":11315,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/11312\/revisions\/11315"}],"wp:attachment":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/media?parent=11312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/categories?post=11312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/tags?post=11312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}