The Obama Administration is on the ropes and their bent in their programs may be a body blow that inflicts serious damage to the chances that President Obama gets re-elected.
Solyndra, a Silicon Valley company, that manufactured solar panels had applied for government loans. The Department of Energy loan guarantee program started in 2005. The program was supposed to provide funding to retrain the workers to compete with foreign technology advances. The Bush administration had not approved the loan guarantee.
President Obama took the oath of office on January 20, 2009. gave preferential treatment to like-minded companies and businesses. From the beginning, Solyndra, seemed on a path of bankruptcy. The Obama administration ‘fast-tracked’ the application process for Solyndra. Solyndra, in 2009 continued to struggle due to overhead that was approximately 200% of the revenue.
The Obama administration approved its first green jobs stimulus loan, a $535 million loan guarantee for the struggling company. Solyndra also approached the administration to contract the purchase of solar panels. The government did not agree to purchase solar panels. Solyndra spent $527 million of the loan guarantee.
Last week Solyndra filed for chapter 11 bankruptcy protection. Today, the Solyndra executives reversed their decision to cooperate with the Congressional committee investigating the loan. The executives have exercised their Fifth Amendment right to remain silent.