Talk about the blatant hypocrisy! In this case, it's the President and his minions pointing the finger of blame at Republicans for "crony capitalism." A study by the Reason Foundation indicates it's the President and his minions who are authentic crony capitalists...the genuine article.
The study focuses upon the Obama administration's guaranteeing loans for green energy projects through the U.S. Department of Energy (DOE). Its 1705 Loan Guarantee Program is a $16B program whose administrators are responsible for all of those failed "green" investments, the Solyndra "investment' being the most notorious example of this failed policy.
Those administrators ignored credit rating agencies reports which classified the majority of the 1705 projects as "risky" and "highly speculative." Worse yet, 22 of the 26 projects (that's 84.6%) were rated as "junk" investments.
Why did those administrators invest taxpayers' money into such highly speculative ventures?
According to the study:
- The applicants' lobbying expenditures determined DOE allocations.
- The individuals who approved the loan guarantees had close ties to many of the recipients of those loan guarantees.
Arguably, the most egregious example of crony capitalism is that of U.S. Senate Majority Leader, Senator Harry Reid (D-NV). He received $58k in campaign contributions from executives of the companies with three energy projects in Nevada that ultimately were funded with 1705 money. Ever wonder why Senator Reid battled so hard to have those loan guarantees included in President Obama's American Reinvestment and Recovery Act?
Talk about crony capitalism!
But in this case, it's the Democrats who are the crony capitalists, all the while pointing the finger of blame at the Republicans, calling them crony capitalists and leaving the taxpayers on the hook for all of those investments that stretch the boundaries of credulity.
Let the discussion begin...
To read the Reason Foundation study, click on the following link:
"Lobbying, Cronyism and Section 1705 Loan Guarantees."