Posted on 11/18/2014 11:14:17 AM PST by Prophet2520
The US Department of Energy loans guarantee programme has made more from interest payments than it lost on failed companies such as Solyndra.
Figures released by the department this week show it is on track to make more than US$5 billion profit by the time it closes with US$810 million it has received to date, exceeding the US$780 million in losses from companies that defaulted.
(Excerpt) Read more at pv-tech.org ...
Let’s all put on a happy face for the $5B profit and forget about that whenever the government is involved in something it is picking winners and losers while controlling some aspect of our lives.
Yay, a company that is BANKRUPT somehow is paying off a loan!
*yeah, right*
If they have received $810 million to date...
They can not have made $5 billion profit to date.
Profits must be less than $810 million to date if that’s all they’ve received.
Are they projecting profit out into the future ?
Also, any time the Feral government takes in more than it pays out on projects such as this, it does not reduce tax rates.
The Ferals just spend the surplus.
Tax rates only go down if Congress reduces them.
That assumes no more losses on existing loans I think. No lender would make such an assumption.
Exactly.
But don’t expect an honest analytical response from Prophet2520
When computing these numbers they don’t take into account the cost to the treasury of borrowing the money to lend out to these solar companies i.e. borrowing costs to the government are not attributed to the program. Not exactly GAAP.
Solyndra wasn’t the only company that took loans on this program.
And we should believe this because...?
Solyndra is the best known.
And most spectacular failure.
And the claim lately has been that Solyndra is somehow making money.
Which is like going to NASCAR, watching a wreck, then declaring that the wrecked car is winning, somehow.
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The headline is a lie and trying to tell us what’s going to happen in the next 20 years as if it is already true.
We need to get government out of the loan business. Period.
Exactly!
The old Soviet model of business.
Set up something, watch it fail, then claim success over X amount of years as if it were fact.
The article speaks for itself. My tolerance for endless, useless arguments today has already reached its limit. I leave you with only one last thought.
Mutual Funds, or ETFs. The principal is simple, picking 100% winners in companies is very unlikely. So you pool your investment into many. If one or two fails you can still make a profit on the overall.
Economist: Obama’s Green Loans Are Losing Taxpayers Money
excerpt:
The Obama administration’s controversial green loans program has raked in $810 million in interest repayments, earning praise from left-wing pundits and environmentalists who argued the program is on track to make money for taxpayers.
A closer look at a recent Department of Energy financial report, however, suggests liberals may be sounding the trumpet a little too soon. One prominent economist notes that, if you include government borrowing costs to finance the loans, it puts “taxpayer losses in the hundreds of millions of dollars.”
According to the Energy Department, it is on track to earn more than $5 billion in total interest payments. Already, the DOE says it’s raked in $810 million in interest payments, which now outweigh the $780 million in estimated losses the loan program is expected to incur.
Sounds good, but a tiny footnote in the DOE’s report casts some doubt on the overall profitability of the green loan program, which has so far funneled more than $30 billion to finance renewable energy and alternative vehicle projects.
The DOE did not factor in borrowing costs incurred by the Department of Treasury in financing the green loans. This means taxpayers are likely seeing a loss on government-backed green loans, according to Urban Institute economist Donald Marron.
“In other words, DOE reports gross interest received, not the net interest taxpayers have earned after subtracting Treasury borrowing costs,” writes Marron, who previously served on the President’s Council of Economic Advisers. “But when we account for Treasury borrowing costs, taxpayers are actually well behind.”
Talking to yourself is a sign of impending mental collapse.
And a pure propaganda piece that claims success that has not happened as if it were fact is not an article.
“The principal is simple, picking 100% winners in companies is very unlikely. “
Government has no business picking AT ALL.
Yes this is the new GRUBERNOMICS.
You get a low interest loan from the government, you pay it back with government grant money and the government claims the small interest payments they received is profit for the government. You get clean green tax credits and the IRS, EPA and all the other alphabet soup agencies leave you alone.
It a win-win for everyone!
It does and it tells me we are being Grubered again.
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