Solyndra, a California-based solar company, had received a $535 million loan guarantee from the Obama administration announced Wednesday that it will shut down. The company said Wednesday it would suspend its manufacturing operations and lay off 1,100 employees effective immediately. The company said it intends to file a petition for Chapter 11 bankruptcy protection.
Wow! So, we half a billion dollars in federally-guaranteed loans, and a year later the firm files bankruptcy? I'm especially interested in where the $535 million actually went and what it was spent on. And, did management get any bonuses? An inquiring mind would really like to know the answer to that question.
What should be the lesson learned here? Answer: The government has no business in trying to pick winners and losers. (That is the job of the market economy.) And, what does the government have to show for financing this debacle? Answer: Losing nearly half a billion dollars. However, I do like its name and the sound of it.
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