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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsU.S. Expects $5 Billion PROFIT From Program That Funded Solyndra
By Justin Doom
The U.S. government expects to earn $5 billion to $6 billion from the renewable-energy loan program that funded flops including Solyndra LLC, supporting President Barack Obamas decision to back low-carbon technologies.
The Department of Energy has disbursed about half of $32.4 billion allocated to spur innovation, and the expected return will be detailed in a report due to be released as soon as tomorrow, according to an official who helped put together the data.
The results contradict the widely held view that the U.S. has wasted taxpayer money funding failures including Solyndra, which closed its doors in 2011 after receiving $528 million in government backing. That adds to Obamas credibility as he seeks to make climate change a bigger priority after announcing a historic emissions deal with China.
A $5 billion return to taxpayers exceeds the returns from many venture capital and private equity investments in clean energy, said Michael Morosi, an analyst at Jetstream Capital LLC, which invests in renewable energy.
more
http://www.bloomberg.com/news/2014-11-12/u-s-expects-5-billion-from-program-that-funded-solyndra.html
I'm sure the media will be quick to pick this one up and apologize for all of the negative Solyndra stories...
B Calm
(28,762 posts)badtoworse
(5,957 posts)Last edited Thu Nov 13, 2014, 11:40 AM - Edit history (1)
ETA: The government's cost of capital is significantly more than 1.5% so the program is still a loser.
J-Stone
(3 posts)or are you a person that just will not give the facts any credence whatsoever?
The idea that the republicans were wrong yet again seems to leave some people aggravated instead of wondering why they keep listening to and electing them.
badtoworse
(5,957 posts)A $5 billion profit on a $16.2 billion investment over a 20 - 25 year period reflects about a 1.5% return on capital. If the capital costs about 2.5% (typical rates over the past few years on 10 year Treasuries), it was a losing proposition. I didn't bother to calculate how big of a loss it was.
bhikkhu
(10,718 posts)how about the net benefit of an entire industry that might not exist otherwise? Many thousands of jobs in production, which are the types of jobs that support many other jobs in service industries. And then you have tax revenues from all the income earned.
The net benefit of having profitable manufacturing businesses here is far beyond a 1% loss on theoretically not having the program. And then there is a net benefit to our energy independence that difficult to calculate. And then consider that the investment builds an industry that produces power without fossil fuels, and may be the difference between a miserable future with no options, or one that creates a sustainable future with opportunities for prosperity. Its a hopeful step.
Leave thinking small to the republicans - we know that doesn't work.
badtoworse
(5,957 posts)Fred Sanders
(23,946 posts)a profit and it did, and it was completely successful...WTF?.....what side are you on??
Munificence
(493 posts)They are about to come up with a forecast on potential profits....this puppy has not created a "profit" yet.
And "completely successful"...it will be successful only when all of the monies are paid back and the profit is looked at.
Just sayin' as I know a lot of people do not understand what "profit" actually means. Not saying you don't, but it sure sounds like it.
Fred Sanders
(23,946 posts)Munificence
(493 posts)it was never "intended to make a profit", but this is what you said:
"The big deal is that the fucking Republicans propagandized the loan program never meant to turn
a profit and it did.."
Notice your "and it did" statement.
Please post again when you learn how to qualify statements.
quaker bill
(8,224 posts)Stimulus dollars cost nothing. Treasuries were not sold to create them. The same holds for the 3 trillion spent by the FED to buy bonds and mortgage backed securities in QE. Money supply was just expanded to replace money that evaporated in the crash.
Further, even if you still buy the notion that the money was borrowed, interest on treasuries is paid from general revenue. Given they are making the loan payments, one must assume that these businesses exist, are making profits, and are paying taxable salaries.
It comes out better than a wash either way, and we get the benefit of a new green industry.
Beyond this is the simple notion that Government does not exist to make a profit. So even if leading costs money, it is better than sitting on your hands and doing nothing.
babylonsister
(171,070 posts)Martin Eden
(12,870 posts)If the job of the mainstream media was to inform the public on important issues this would be a major news story.
Otherwise, it's more evidence of who controls the media and whose intersts it serves.
Fred Sanders
(23,946 posts)Mr. Mustard
(63 posts)listen as the morons troll their talking points.
We want dirty energy because - Benghazi! LOL, if it weren't so damned serious.
underpants
(182,826 posts)...and not mention the Solyndra part. Their believers will not make the connection
C Moon
(12,213 posts)But somehow, though, they get votes.
:/
They always seem to be successful when they are able to implement "macho" into elections.
Dopers_Greed
(2,640 posts)A had a few family members raving about the Solyndra "scandal" during the 2012 election.
Old Nick
(468 posts)NAH-NAH-NAH-NAH-NAH!