Do these people do any due diligence at all when they decide which companies to give our money? I can understand maybe, maybe this happening once, but not consistently like it has.
What sort of excuse can they dream up for this one? They probably won't; they will do like the typically do with bad situations, they will simply ignore it and not talk about it and the media will follow suit.
WASHINGTON (Reuters) - The Obama administration provided struggling battery maker A123 Systems Inc with nearly $1 million on the day it filed for bankruptcy, the company told lawmakers investigating its government grant.
The company, which makes lithium ion batteries for electric cars, filed for Chapter 11 bankruptcy protection last month after a rescue deal with Chinese auto parts supplier Wanxiang Group fell apart.
That same day, October 16, A123 received a $946,830 payment as part of its $249 million clean energy grant from the Energy Department, the company said in a letter, obtained by Reuters, to Republican Senators John Thune and Chuck Grassley.
In the letter, dated November 14, A123 said the October payment was the most recent disbursement it had received from the government, with an additional $115.8 million still outstanding on the grant.
Thune and Grassley have pressed the Energy Department for more details about its funding of A123 as the company has faltered.
"The Department of Energy needs to answer for why it appears to put federal grants on auto-pilot to the detriment of U.S. taxpayers," Senators Thune and Grassley said in a statement. "This can't stand."
If anyone, including governments, makes numerous investments in companies, some will not work out, some will be poor investments, some will even go bankrupt. If you do not believe me ask KKR, Cain Investments, or Blain Capital. After the fact, it is easy to say "How could we have been so stupid?" I think that is especially true when the investments deal with alternative energy.
Those who are so inclined should read about the number of elements that Edison tried before he found a filiment that had a fairly long life and did not start fires. Was he stupid for trying so many other filiments before he struck on the one that actually worked? They were all failures.
A123's products did not work; the products were not economically fesiable. However, that is the price you pay for progress and expermentation.
I suggest you look at all the investments that were made that ended up successful and understand that the percentage of successes far outweigh the failures.
While you focus on symbolic trivialities (a payment arriving on the day of a filing. So what?), you miss the big picture. This company was a leader in automotive battery production, went bankrupt due to a recall on one product line, and China is itching to buy the rest of the product lines.
This isn't a story of a failure. This is a story of a success being transferred to China because of the short-shortsightedness of a particular group of partisans.