Or "How Crony Capitalism Can Make Socialism Financially Successful"...
Car Company Gets U.S. Loan, Builds Cars In Finland
By MATTHEW MOSK, BRIAN ROSS and RONNIE GREENE
ABC NEWS and iWATCH NEWS
Oct. 20, 2011
With the approval of the Obama administration, an electric car company that received a $529 million federal government loan guarantee is assembling its first line of cars in Finland, saying it could not find a facility in the United States capable of doing the work.
Vice President Joseph Biden heralded the Energy Department's $529 million loan to the start-up electric car company called Fisker as a bright new path to thousands of American manufacturing jobs. But two years after the loan was announced, the company's manufacturing jobs are still limited to the assembly of the flashy electric Fisker Karma sports car in Finland.
The loan to Fisker is part of a $1 billion bet the Energy Department has made in two politically connected California-based electric carmakers producing sporty -- and pricey -- cutting-edge autos. Fisker Automotive, backed by a powerhouse venture capital firm whose partners include former Vice President Al Gore, predicts it will eventually be churning out tens of thousands of electric sports sedans at the shuttered GM factory it bought in Delaware. And Tesla Motors, whose prime backers include PayPal mogul Elon Musk and Google co-founders Larry Page and Sergey Brin, says it will do the same in a massive facility tooling up in Silicon Valley.
An investigation by ABC News and the Center for Public Integrity's iWatch News that will air on "Good Morning America" found that the DOE's bet carries risks for taxpayers, has raised concern among industry observers and government auditors, and adds to questions about the way billions of dollars in loans for smart cars and green energy companies have been awarded. Fisker is more than a year behind rolling out its $97,000 luxury vehicle bankrolled in part with DOE money. While more are promised soon, just 40 of its Karma cars have been manufactured and only two delivered to customers' driveways, including one to movie star Leonardo DiCaprio. Tesla's SEC filings reveal the start-up has lost money every quarter. And while its federal funding is intended to help it mass produce a new $57,400 Model S sedan, the company has no experience in a project so vast.
There is intense scrutiny of the decisions made by the Department of Energy as it invests billions of taxpayer dollars in alternative energy. The questions come in the wake of the administration's failed $535 million investment in solar panel maker Solyndra. The company's collapse, bankruptcy and raid by FBI agents generated a litany of questions about how the Energy Department doles out billions in highly sought after green energy seed money...
Both companies have political heavyweights behind them. One of Fisker's biggest financial supporters, records show, is the California venture capital firm Kleiner Perkins Caufield & Byers. The firm financially supports numerous green-tech firms, records show.
Kleiner Perkins partner John Doerr, a California billionaire who made a fortune investing in Google, hosted President Obama at a February dinner for high-tech executives at his secluded estate south of San Francisco. Doerr and Kleiner Perkins executives have contributed more than $1 million to federal political causes and campaigns over the last two decades, primarily supporting Democrats. Doerr serves on Obama's Council on Jobs and Competitiveness. Doerr has not replied to interview requests since March.
Former Vice President Al Gore is another Kleiner Perkins senior partner. Gore could not be reached for comment.
Tesla brings political pull, as well. A former Tesla board member, Steve Westly, is an Obama bundler who raised hundreds of thousands of dollars for the president in 2008 and for his 2012 re-election campaign. His Westly Group was also a financial supporter of Tesla Motors until Tesla went public in 2010, and Westly continues to back the company. Westly has declined interview requests since February, but has appeared in multiple conferences, forums and TV interviews publicly praising Tesla Motors.
Tesla's founder and CEO, Elon Musk, is a hearty political contributor who has primarily backed Democrats, including Obama. According to published reports, another Tesla investor is Nick Pritzker, a donor to Obama and a cousin of Penny Pritzker, the national finance chair of Obama's 2008 campaign.
Well! What do they say? "Follow the money!"
So we have a Marxist president, railing about millionaires and billionaires paying their fair share, practicing crony capitalism to award taxpayer dollars to his filthy rich financial supporters. Realizing, no doubt, that will ultimately result in some of that taxpayer money passing back through their hands to his re-election campaign (and efforts to secure the same).
Billions of dollars to Democrat/Obama supporters who are tremendously wealthy, and yet want taxpayer money for their adventure capitalism. Which, unless that taxpayer money is secured by guarantees against their personal wealth (which in view of Solyndra I doubt very much), isn't capitalism at all - just selective socialism mixed with activist environmentalism.
Democrat supporter George Kaiser and his billions, not paying his taxes and ultimately paying $.15 on the dollar to settle, gets half a billion in taxpayer money for Solyndra. Venture capitalist and Democrat supporter and Obama insider John Doerr, a billionaire, and yet needs hundreds of millions of taxpayer dollars for his latest venture. And Democrat millionaire Al Gore and taxpayer money... nudge, nudge, wink, wink, say no more, say no more, know what I mean, know what I mean?
And then we have Larry Page (20 billion), Sergey Brin (20 billion), Elon Musk (a paltry billion). So... they're collectively worth approximately 82 times the amount of taxpayer money they were given for their venture "capitalism" project, and just why did they need taxpayer dollars to help them out? Are they that broke? Is the public's money at least secured by Google and PayPal shares if this becomes the next Solyndra?
Perhaps most pathetic of all, there won't be much worldwide demand for coal fired "green energy" cars (where do you think the electricity comes from?) costing $50,000+, which only get a real mileage of about 19 mpg - about 5 mpg LESS than my 1995 Dodge Ram 3/4 ton 4x4 with Cummins Diesel gets when unloaded. Sounds like a successful business model that one should "invest" taxpayer money in to me! Right up there with Solyndra!
The only bright spot, according to Forbes, is "the Fisker Karma does serve a social purpose — Hollywood celebrities and the ultra rich, who want to display their green credentials, no longer have to be stuck with a little econobox. They can now enjoy a little leg room and luxury."
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