15 Mar

Obama’s Green Energy Stimulus Process Explained [Reader Post]

                                       

ABC News explains Barack Obama’s green energy programs:

President Obama’s Department of Energy helped finance several green energy companies that later fell into bankruptcy — but not before the firms doled out six-figure bonuses and payouts to top executives, a Center for Public Integrity and ABC News investigation found.

Take, for instance, Beacon Power Corp., the second recipient of an Energy Department loan guarantee in 2009. In March 2010, the Massachusetts energy storage company paid cash bonuses of $259,285 to three executives in part due to progress made on the $43 million energy loan, Securities and Exchange Commission records show. Last October, Beacon Power filed for Chapter 11 bankruptcy.

EnerDel, maker of lithium-ion battery systems, landed a $118.5 million energy grant in August 2009. About one-and-a-half years later, Vice President Joe Biden toured a company plant in Indiana and heralded its taxpayer-supported expansion as one of the “100 Recovery Act Projects That Are Changing America.”

Two months after Biden’s visit, EnerDel corporate parent Ener1 paid $725,000 in bonuses to three executives — including $450,000 to then-CEO Charles Gassenheimer, who led Biden on the tour. This January, Ener1 filed for Chapter 11 bankruptcy protection.

At least two other firms that benefited from Energy Department funding — one a $500,000 grant, the other a $535 million loan guarantee — handed out hefty payouts to executives and later went bankrupt.

The Department of Handing Money to Obama donors Energy says it’s “troubled” by these practices:

“We don’t begrudge companies or their executives for their success, but it is irresponsible for executives to be awarded bonus compensation when their workers are losing their jobs,” said department spokeswoman Jen Stutsman. “We take our role as stewards of taxpayer dollars very seriously, and as such, we will make clear to loan recipients our view that funds should not be directed toward executive bonuses when the rest of the company is facing financial difficulty.”

So the process is comprised of several steps:

1. Hand out money, 80% going to Obama donors.
2. Big bonuses and payouts to executives
3. Go bankrupt.

And there is one more step

4. In liquidation, make sure Obama donors are paid before the US taxpayer.

The list of Obama green energy failures is long

And the best news is that Obama promises to double down on those failures.

A century of subsidies to the oil companies is long enough,” Obama said. “It’s time to end taxpayer giveaways to an industry that’s never been more profitable, and double-down on a clean energy industry that’s never been more promising.

BTW, heard about Fisker?

At least we have the Justice Department to monitor abusive bonus practices at bankrupt companies. Right?

The Justice Department said it doesn’t closely track how it is enforcing a law curbing executive pay in corporate bankruptcy cases. The disclosure, made in a letter to key lawmakers, comes amid criticism of such payouts in courts and on Capitol Hill. The Justice Department—whose U.S. trustees monitor bankruptcy proceedings—doesn’t have precise data on executive-pay plans reviewed since an overhaul of federal bankruptcy law, according to the March 5 letter.

Coincidence, I’m sure.

About DrJohn

DrJohn has been a health care professional for more than 30 years. In addition to clinical practice he has done extensive research and has published widely with over 70 original articles and abstracts in the peer-reviewed literature. DrJohn is well known in his field and has lectured on every continent except for Antarctica. He has been married to the same wonderful lady for over 30 years and has three kids- two sons, both of whom are attorneys and one daughter on her way into the field of education. DrJohn was brought up with the concept that one can do well if one is prepared to work hard but nothing in life is guaranteed. Except for liberals being foolish.
This entry was posted in Barack Obama, Culture of Corruption, Deception and Lies, Economy, Energy, Politics, propaganda bureau and tagged , , , , , , , . Bookmark the permalink. Thursday, March 15th, 2012 at 6:00 am
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14 Responses to Obama’s Green Energy Stimulus Process Explained [Reader Post]

  1. Gary Kukis says: 1

    This is so unbelievable, it makes my blood boil. Can you imagine this level of corruption in the Bush administration? They would be calling for Bush to be impeached.

    ReplyReply
  2. Oil guy from Alberta says: 2

    The US Government creates more debt in one day than small to mid size oil companies can deduct on completion allowances for one year. The large oil companies lost this tax deduction during the Carter Administration. That’s the 4 billion in question. Small to mid size oil companies employ over 4 million Americans. Large companies usually stay out of poor producing holes because they can’t get enough production and deductions, and lose money. Its much easier playing middle man. Your precedent is projecting and deflecting or in plain english he is misleading or lying to Americans.

    ReplyReply
  3. Comm0n Sense says: 3

    It is time that America receives a complete accounting of the $780 billion dollars wasted by the 0-bama administration. Every time you turn around there is another green company going under that we have given millions to. I would bet America would be appalled to really know what their return on investment is!!

    ReplyReply
  4. Budvarakbar says: 4

    @Gary Kukis: The rat bastards were anyway

    ReplyReply
  5. Nan G says: 5

    Surprisingly ABC News has both Jake Tapper and Brian Ross on its payrolls.
    This article comes from Brian Ross’s The Blotter, investigative team.
    Either Obama thinks no one sees this stuff, or ABC’s syncophants on TV make up for it, or ABC is hedging its bets lest a Republican gets elected in 2012.

    A great quote is on page 1 of this piece:

    Leslie Paige, spokeswoman for the nonpartisan Citizens Against Government Waste said, “Taxpayers need some representation here. They didn’t really get it.”

    The DOE was supposed to be OUR representative.
    It is NOT.
    It represents only Obama’s re-election interests.

    ReplyReply
  6. liberalmann says: 6

    Noooo….let’s not invest in alternative energy sources for the future. Let’s let the rest of the world ween themselves off of oil while we sink. THINK, people, THINK!

    ReplyReply
  7. anticsrocks says: 7

    @liberalchild: Take your own advice.

    Why are all these so called “Green Energy” companies filing bankruptcy?

    THINK, moron, THINK!

    ReplyReply
  8. Comm0n Sense says: 8

    @liberalmann: Liberalman, wake up and put down the Kool Aid. Tell me which Republicans are saying we should NOT pursue alternative energy sources. I need documentation. Just because Republicans are responsible enough to realize that our oil resources need to also continue to be developed does not mean they are not also interested in a balanced approach to alternative fuels. It just idiots like you and your messiah that like to ramp up the noise and say such things. I need specific references and quotes to support you idiotic position. THINK idiot THINK.

    ReplyReply
  9. Ditto says: 9

    @anticsrocks:

    Get your head out of your anterior orifice Lib. No one here is against alternative energy research or energy conservation. The problem we have is with: (1) Crony capitalism the giving of taxpayer funds to unstable/unproven, high risk companies with poor buisiness plans, (as quid-pro-quo kickbacks favoring campaign contributers) and (2) Attempting to forcibly switch us to dependency on alternative energy sources before the technology is at a sufficient development level to make it a viable, reliable alternative.

    No one is against personal investment in alternative energy and energy conservation research and manufacturing. I happen to have taken the risk and invested in a few alternative energy companies. Most have under performed, some have been mismanaged: a couple having gone bankrupt as a result of mismanagement), most have had the stock manipulated by pumpers and short-sellers, and only one has continued to perform as a stable, if slow growing investment. As is wise with all high-risk investment/gambling, we only invested those funds we could afford to lose. We balanced our portfolio with more reliable, conservative performing investments. As a result, we have come out almost roughly breaking even, although we encountered substantial loss in value of our investments.

    The left however, unwisely wants Americans to leap headlong with heavy investment into risky, unproven and rickety alternative energy technology, while inhibiting and trying to close down proven, established energy production, throwing the “old” stable technology and energy resources out before the newer, still in development technology is even ready to come on line.

    Tortured metaphor: You never ever put all your eggs in one basket, much less kill and eat all the egg-layers whilst handing the aforementioned container over to an erratic, hopping creature who fully intends to hide and redistribute your nest eggs.

    ReplyReply
  10. anticsrocks says: 10

    @Ditto: ??? Excuse me?

    You called me a lib?

    ReplyReply
  11. Ditto says: 11

    Hmm… That was supposed to be a reply to #6 by Liberalmann. Sorry Antirocks. Don’t know what happened there but I certainly wouldn’t ever call you a Lib. Can’t enter edit to fix it. If Curt or a moderator could fix that I’d appreciate it.

    ReplyReply
  12. anticsrocks says: 12

    @Ditto: No worries, I thought it was something like that. Hey point and click can be dangerous, huh? lol

    :-)

    ReplyReply
  13. Pingback: Obama gives history class, flunks the part about Obama | Grumpy Opinions

  14. Pingback: Green Economics: Science, Politics, and Capitalism - Page 2 - US Message Board - Political Discussion Forum

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