Remember Solyndra? The Washington Times reports that Abound Solar, maker of solar panels and recipient of a $400 million loan guarantee from the Federal Government, announced Thursday that it would file for bankruptcy. The cost to taxpayers: roughly $70 million. Obviously, it doesn’t compare to the $538 million that the Solyndra bankruptcy will cost taxpayers but $70 million is still a big deal.
As I have mentioned in the past, the government should get out of the lending business and the venture-capitalist business because it is not its role and it is not good at it. As a general rule, these loans go to two different types of companies:
In other words, these loans either go to companies that are too risky and shouldn’t get them or to companies that don’t need them. That’s true for energy loans and for any other loan-guarantee program. They need to be terminated. Solyndra and Abound Solar are only the tip of the iceberg.