We first published our blog below about the Solyndra scandal on September 26, 2011.
There's an incredibly misleading editorial about the Solyndra scandal in a leading New York newspaper. A simple review of the company's prospectus immediately highlights the following:
1. Several executives had compensation approaching a million dollars.
2. There were at least 25 million stock options made available to various parties.
3. Large hedge funds were significant owners of the company's shares.
The editorial blames the bankruptcy on a "stunning collapse in the price of solar panels".
It is obvious that before an investment of $500 million occurred analytical reports should have been written forecasting the trend of solar panel prices (if the company did not have enough big commercial customers that should have been easily detectable to anyone that took the time to review the company's position in the marketplace).
To compare the financial crises with the solar panel market is patently absurd. Home prices have risen for many years whereas solar panel prices were really a commodity product.
The idea that risking is what its all about is a joke on its face. Its easy to take risks that are totally wrong, but success is determined by wise decisions. The outlook for solar panel pricing in the United States was obviously negative since the number of companies that have been started in just a few years indicates relatively simple ease of entry and requires no particular technological advantages.
Another disadvantage the solar companies faced is the fact that oil producing countries want to keep any alternative sources of energy out of the picture even though most oil is used for cars and trucks, not power generation. Coal is the only true competitive alternative to solar energy and reducing the demand during the next decade would cause serious additions to unemployment. Unfortunately most of the coal miners could probably not be working in the solar industry.
The relationship between the hedge funds, all sorts of people in government and whether there were unions involved in the Solyandra workforce is only the tip of what seems to be a huge potential scandal of political power with our money.
1. Several executives had compensation approaching a million dollars.
2. There were at least 25 million stock options made available to various parties.
3. Large hedge funds were significant owners of the company's shares.
The editorial blames the bankruptcy on a "stunning collapse in the price of solar panels".
It is obvious that before an investment of $500 million occurred analytical reports should have been written forecasting the trend of solar panel prices (if the company did not have enough big commercial customers that should have been easily detectable to anyone that took the time to review the company's position in the marketplace).
To compare the financial crises with the solar panel market is patently absurd. Home prices have risen for many years whereas solar panel prices were really a commodity product.
The idea that risking is what its all about is a joke on its face. Its easy to take risks that are totally wrong, but success is determined by wise decisions. The outlook for solar panel pricing in the United States was obviously negative since the number of companies that have been started in just a few years indicates relatively simple ease of entry and requires no particular technological advantages.
Another disadvantage the solar companies faced is the fact that oil producing countries want to keep any alternative sources of energy out of the picture even though most oil is used for cars and trucks, not power generation. Coal is the only true competitive alternative to solar energy and reducing the demand during the next decade would cause serious additions to unemployment. Unfortunately most of the coal miners could probably not be working in the solar industry.
The relationship between the hedge funds, all sorts of people in government and whether there were unions involved in the Solyandra workforce is only the tip of what seems to be a huge potential scandal of political power with our money.
