With the media keeping its eye trained on the failed launch of Obamacare, don't be lulled into complacency on another front: Hypocrisy associated with President Obama's 2009 "economic stimulus" package.
Remember the Solyndra debacle that left American taxpayers on the hook for $535M?
Yesterday, Fisker Automotive Inc., whose $103k plug-in hybrid sports sedan--the "Karma"--which operates in all-electric mode or in tandem with a small gasoline engine, hit the wall of fiscal reality in the U.S. Bankruptcy Court of the District of Delaware (Wilmington). According to Bloomberg, court documents reveal that U.S. taxpayers lost $139M of the $192M loan Fisker received from the Department of Energy.
Guess who partnered with the Silicon Valley venture company Kleiner, Perkins, Caufield, and Byers to back the original Fisker loan? Yesiree, none other than former Vice President Al Gore who even purchased a Karma to demonstrate his commitment to the plan.
The soaking could have been worse for taxpayers, however. Although the Karma was produced in Finland, Fisker had planned to use most of its $529M Department of Energy loan commitment to develop a second model at a former GM plant in Delaware. That hopium never turned into changeum--Hurricane Sandy destroyed the plant--and the Department of Energy stopped loaning the remainder of its commitment to Fisker because the company could make a payment on the loan.
Of the bankruptcy, Fisker's Chief Restructuring Officer, Marc Beilnson said:
After having evaluated and pursued all other alternatives, we believe
the sale to Hybrid and the related Chapter 11 process is the best
alternative for maximizing Fisker Automotive’s value for the benefit
of all stakeholders. Fisker Automotive technology and product
development capability will remain a guiding force in the evolution
of the automotive industry under Hybrid’s leadership.
This is where the story gets interesting and why people should keep their eyes trained on this story, too, insofar as The Motley Monk is concerned.
The Energy Department decided to auction its interest in Fisker after it defaulted on its loan without making a payment and attempts to find a buyer failed. However, a newly-formed group--Hybrid Technology LLC--has paid $25M to win the Energy Department's auction to take over Fisker’s defaulted taxpayer loan.
Hopium reigns supreme, as the Energy Department is once again betting that Hybrid Technology LLC will produce the Karma.
Well, guess who's representing Hybrid Technology? A strategic communications firm, the Glover Park Group. Its leadership team includes Joe Lockhart. Remember him? Lockhart was one of Bill Clinton's White House spokesmen.
This revelation comes only weeks after the Daily Caller revealed that First Lady Michelle Obama's Princeton classmate, Toni Townes-Whitley, is a top executive at the company that earned the contract to build the failed Obamacare website.
Forget the charge of making "reckless gambles" with taxpayer money.
Remember when then-candidate Barack Obama accused President George W. Bush of “crony capitalism”?
The hypocrisy is worse.
Let the discussion begin...
To read the Bloomberg article, click on the following link:
To read the Daily Caller article, click on the following link: