Abound Solar Finances Under Investigation
DOE-loan recipient filed for bankruptcy in June
BY: Washington Free Beacon Staff
October 8, 2012 3:22 pm
The finances of a solar company that received $68 million in federal stimulus money are now under investigation in Colorado, reports ABC Denver:
http://freebeacon.com/abound-solar-finances-under-investigation/
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I’ll just add some of my comments.
After all the rage about solar companies, where Obama succumbed to one of his worst losses — or “bets”– the industry is on the move once again. But not in an upward “can’t fail” way.
Months back, large solar companies in Europe were forced to lay off workers or just went under. The market flooded with cheaper goods from China was to blame, as it also cornered the market on raw materials. Sales for Solar companies outside China plummeted. China appeared to be capitalizing on all the losses elsewhere.
Then, stories came about huge layoffs in Germany as companies went belly up. The business and future it held for employees even in Germany sank for an industry which seemed to hold such promise for its economy.
This is a warning about the dangers of government manipulated industries. China is the prime example. The solar industry once heralded as the new wave enjoyed growth and expansion everywhere, especially in China. The same government that subsidized it is picking winners and losers. Sound familiar? The state-controlled banks are the government’s cops on the beat. Of course, the banks decide who will survive by who gets loans and who doesn’t. And banks are not granting loans only for expansion, another blow to the sector.
Now the government decided it is time for industry consolidation after it endorsed expansion for years. So they must force consolidation. Banks already limited expansion and now encourage mergers and acquisitions within the sector, large companies buying smaller operations.
There are growing cries for tarrifs on China. Let’s see what that brings; or if they materialize with the same hyper-addiction the industry enjoyed? US has stepped up tariffs and the EU is on the verge of adopting tougher measures. Other countries are considering that formula. So a monopolized market is finally getting squeezeed as others seek relief to China’s “dumping” around the world. And that reaction appears to be creating a problem for China.
More reference: http://www.bloomberg.com/news/2012-09-06/china-price-war-draining-jobs-in-germany-s-solar-valley-energy.html
Right Ring 
Good post bull! Solar energy. The only things I’ve seen it really useful for is natural sun light. so we don’t die and enabling the only device I’ve ever seen that actually keeps correct time all the time…sun dials! Solar energy is a bust and we’ll go bust pursuing it. I put wooden shoes and windmills in that same category. The Dutch can keep them both.
So China is to blame, because they supplied wanted items at a cheaper price than anyone else could. I call that buying at a good price and outbidding the competition. Good for China! That’s how business works. Who is to blame once the horse gets out? The guy that built the gate? The horse? Or the guy that’s suppose to make sure the damn gate is always closed? We’ve been soft of tariffs for like…EVER…so go figure. China is now panicking because their economic growth slowed to 7.5% last quarter…ha! What was our economic growth last quarter? Germany’s? China got the jump on everyone else selling the needs to the propaganda solar energy crowd and tax payers here have lost their ass. BUT…someone is getting rich off this bull shit. And my guess is it’s the same folks that get rich off of every failure of every country, because they pull ALL the strings so they never lose. They assassinate presidents on public TV just to make a statement, before they lose.
That crowd couldn’t buy the middle east, so they had to come up with another way to make money from that sector. Hence; green energy emerges. Sounds good to most, because it’s suppose to be better for our planet. That would be great, if it wasn’t actually the script for a new Walt Disney movie…
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Dave, thanks, good comment. It sure is another mess. I’ll give them one thing, they come up with the catchiest sounding names.’Abound goes bust’, there’s a catchy slogan. And so goes all these millions of jobs Barry was creating. Funny they have ignored this subject for something that was so big on his agenda. Rather talk about Mitt’s taxes.
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Bull, green energy is a catchy phrase to get elected but no one ever seems to follow through with any success. Thus; they’d rather not talk about their failure of backing a failed plan. I remember Barry promising a lot of jobs rebuilding our infrastructure also, but haven’t seen that either. Barry couldn’t create jobs in a candy store giving away free goodies to kids.
It blows my mind rich folks get picked on for taking advantage of the tax loopholes created by politicians. I don’t hear women bitching when a store has their clothing buy one get one free! They’re cool with that. And Obama’s wealth has went from $1.5 million to over $10 million during his presidency, but everyone seems cool with that. What a crock…
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Dave, LOL. right and that wealth was created from public office. (should I say generated from)
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Bull, yeah…LOL! Obama gets rich because of his title and two self proclaiming books that he hates our country, hates white folks and loves muzzies! Only in America…
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I’d like to ask him, “don’t you think at some point you’ve made enough money at the public trough?”
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I sure hope Bubba outlives Barry, because I would love to see him write a book about Barry! Hell; I’d buy that Bubba Book…
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Dave, that would be great , I’d buy it too. And just for insurance, he probably has it written now except or the last couple chapters. LOL. Hill could have two, 🙂
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Bull; fresh off yesterdays press. Another solar panel company that got over $500M of our tax dollars just declared bankruptcy. The kicker; they want to get a tax write off for their losses! Now that is a brand new level of having no shame. Sorry; I’ve been up 24 straight hours and my mind is running very slowly, so I can’t remember the name of the company.
Just more money flushed down Barry’s toilet on another not yet developed alternative energy source. The Tree Hugger’s are driving me up the wall! I’m trying to pick the truest and most offensive name to call them, but there are just so many to choose from…
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Dave, yea another one floats to the surface. Well, I bet Barry is all for their ability to “write off” their losses. More like bankruptcy 123. And Solyndra people are suing Chinese solar companies. (US-based Chinese Solar companies)
I’m sure you’ll come up with an appropriate name. 🙂
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Update more info:
” One of Abound’s capital investors blamed “election-year political games” for driving the company out of business.
Just weeks after Abound filed for bankruptcy in June 2012, Interior Secretary Ken Salazar addressed a gathering at the National Renewable Energy Laboratory and called the bankruptcies “just minor (and expected) blips for the industry””
http://blog.heritage.org/2012/10/06/bankrupt-doe-loan-recipient-abound-solar-under-investigation-panels-suffered-catastrophic-failure/
Abound investor, John Hill: “After Solyndra, the Department of Energy was balking and not releasing any more money under the loan guarantee because they didn’t want to be embarrassed in an election year,” he told MarketWatch.
http://blog.heritage.org/2012/07/27/abound-solar-doomed-to-fail-because-of-election-year-politics-investor-says/
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