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Thread: Federal Energy Loan Guarantees Win Clean Bill of Health

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    Federal Energy Loan Guarantees Win Clean Bill of Health

    Oh no! Looks like the sky isn't falling after all.

    Take a deep breath, because what I’m about to tell you may be shocking: Federal loan guarantees for energy projects have been successful, cost-effective investments—contrary to what some conservatives insist is the case. Don't take my word for it. That’s the message from Herb Allison, former national finance chairman for Sen. John McCain (R-AZ), who led a team of accountants and auditors in conducting an independent analysis of the Department of Energy’s Loan Guarantee Program.

    Allison and his team found that, despite the hysteria around the now-bankrupt solar-panel maker Solyndra LLC, this program will cost $2 billion less than initially expected. When the Department of Energy first issued these guarantees starting in 2009, they expected that they would cost the government more than $5 billion. At their most recent internal analysis in 2011, DOE concluded that the loans were performing better than expected, and that they would not cost less than $3 billion. Now, Allison and his team of independent consultants find that even DOE’s most recent projections were too high, and that the guarantees would only cost $2.7 billion.

    To put that in perspective, the fossil-fuel industry got a whopping $70 billion in government subsidies from 2002 to 2008. Many of these subsidies have been in place for nearly 100 years. The nuclear industry, too, has benefited from billions of dollars in subsidies, including loan guarantees, over the last half-century.
    Federal Energy Loan Guarantees Win Clean Bill of Health

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    Re: Federal Energy Loan Guarantees Win Clean Bill of Health

    Quote Originally Posted by AdamT View Post
    Oh no! Looks like the sky isn't falling after all.



    Federal Energy Loan Guarantees Win Clean Bill of Health
    It wont matter to many...the talking points are established.

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    Re: Federal Energy Loan Guarantees Win Clean Bill of Health

    Quote Originally Posted by AdamT View Post
    Oh no! Looks like the sky isn't falling after all.



    Federal Energy Loan Guarantees Win Clean Bill of Health
    That's nice, but what about Solyndra? That cow chip you voted into the WH still ****ed up, because this was money used to buy votes. Now he wants to reduce our nukes down to China's level. Oh the DoE is so clean, like wind driven snow. Get a ****ing clue dude.
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
    "Fly-over" country voted, and The Donald is now POTUS.

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    Re: Federal Energy Loan Guarantees Win Clean Bill of Health

    Quote Originally Posted by tecoyah View Post
    It wont matter to many...the talking points are established.
    Talking points are your thing, we know.
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
    "Fly-over" country voted, and The Donald is now POTUS.

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    Re: Federal Energy Loan Guarantees Win Clean Bill of Health

    Quote Originally Posted by American View Post
    That's nice, but what about Solyndra? That cow chip you voted into the WH still ****ed up, because this was money used to buy votes. Now he wants to reduce our nukes down to China's level. Oh the DoE is so clean, like wind driven snow. Get a ****ing clue dude.
    Solyndra was part of the program. Of course they anticipated that not all of the projects would pan out. If they weren't risky they wouldn't have required government loan guarantees. Duh.

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    Re: Federal Energy Loan Guarantees Win Clean Bill of Health

    What is odd is that private start up businesses fail at a clip of 75% within the first three years, I am a small biz consultant and marketing guru so I experience it first hand. And people complain about a few businesses that failed out of hundred loaned out to.

    If ten businesses falter from this program it is still far more successful than what the private banking industry bankrolls.
    My blog, where I talk latest news on economics and some other issues.

    http://hereticaldruthers.wordpress.com/

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    Re: Federal Energy Loan Guarantees Win Clean Bill of Health

    Quote Originally Posted by tecoyah View Post
    It wont matter to many...the talking points are established.
    Quote Originally Posted by JP Hochbaum View Post
    What is odd is that private start up businesses fail at a clip of 75% within the first three years, I am a small biz consultant and marketing guru so I experience it first hand. And people complain about a few businesses that failed out of hundred loaned out to.

    If ten businesses falter from this program it is still far more successful than what the private banking industry bankrolls.
    Tecoyah is right, though. The talking points are already well established. It's to the point now where federal loan guarantees have gotten a bad rap despite the fact that many private sector ventures the federal government have supported over the years have been successful. In our current political/economic climate alot of people won't care. They'll just see any loan guarantee program as an abject failure no matter what the evidence shows to the contrary. In fact, about the only type of "loan guarantee" most people will support is more subsidies to big oil and the coal industry which really don't need federal dollars anymore. Furthermore, as long as such positive reports come from progressive think tanks/PACs, etc., no pundit will give it credibility. They'll dismiss the report out of hand. But I appreciate the effort, AdamT and JP Hochbaum.

    Your attempt to illustrate the truth is much appreciated.

    EDIT: Found this from the OP article:

    The Loan Guarantee Program helped America compete in the global economy. In 2011 the United States invested more in renewable energy than any other country in the world, helping us capture our share of this trillion-dollar opportunity. Why were we able to do this? As Michael Liebreich, CEO of Bloomberg New Energy Finance, puts it:

    The news that the United States jumped back into the lead in clean energy investment last year will reassure those who worried that it was falling behind other countries. However before anyone in Washington celebrates too much, the U.S figure was achieved thanks in large part to support initiatives such as the federal loan guarantee program and a Treasury grant program, which have now expired.
    In short, the DOE Loan Guarantee Program is helping move our country forward, and it’s doing it by responsibly managing taxpayer money.
    Wonder what the pundits have to say about that?
    Last edited by Objective Voice; 02-15-12 at 04:59 PM.

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