Another Obama Stimulus “Investment” Goes Belly-Up

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Another Obama Stimulus “Investment” Goes Belly-Up

Postby Todd » Tue Aug 13, 2013 11:38 pm

Another Obama Stimulus “Investment” Goes Belly-Up

The only companies that need government investment are companies with unprofitable or marginal business plans. Profitable businesses with a sound business plans have no problem finding private capital.

So why is it that the politicians insist spending the taxpayer dollars on loser ventures the private sector won’t risk funding? Because that’s what keeps happening, again and again:

ECOtality Inc., an Energy Department-backed maker of electric car charging systems, is facing a major cash crunch and could file for bankruptcy.

The company, which has been awarded nearly $100 million in grant funding under the 2009 stimulus law, disclosed Monday that it’s weighing a restructuring or sale as it seeks more outside capital.

ECOtality, in a Securities and Exchange Commission filing, listed several “adverse developments” that together “significantly impact its ability to meet its ongoing obligations and to fund anticipated operating losses.”

So the company flopped because, let’s face it, electric cars just aren’t practical for most Americans. They’re expensive. They don’t work very well and, especially in colder climates, they aren’t dependable.

But the Obama administration would like you to know that they consider ECOtality a success story anyway:

But an Energy Department spokesman said Monday that the funding for an electric vehicle project by ECOtality achieved its goal.

“The Energy Department’s grant to ECOtality was used for the installation and data collection of charging stations in cities across America where sales of plug-in electric cars are on the rise. Meant to establish the seeds of infrastructure needed to support a growing market for advanced vehicles, the company installed more than 12,500 charging stations in 18 U.S. cities — or approximately 97 percent of their goal,” spokesman Bill Gibbons said.

So I guess the stimulus was just about busy work? It doesn’t really matter if the company invested in survives or not, just so long as they did a bunch of stuff before they went under.

If that’s the key to economic stimulus, maybe the government should just hire all the unemployed people to dig holes and fill them back up again. ... -belly-up/
"Nothing is easier than spending public money. It does not appear to belong to anybody. The temptation is overwhelming to bestow it on somebody." Calvin Coolidge
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