From the Atlanta Journal Constitution:
The Obama administration restructured a half-billion dollar federal loan to a troubled solar energy company in such a way that private investors — including a fundraiser for President Barack Obama — moved ahead of taxpayers for repayment in case of a default, government records show.
Administration officials defended the loan restructuring, saying that without an infusion of cash earlier this year, solar panel maker Solyndra Inc. would likely have faced immediate bankruptcy, putting more than 1,000 people out of work…
Which is a rather stupid defense – because now we’ve got the 1,000 people out of work, plus an additional half billion dollar burden on the American taxpayer. When you start making stupid defenses of your actions, it means you know you’ve really screwed up and are just hoping that it doesn’t entirely blow up in your face.
This scandal, though, is starting to show signs of getting legs – legs which will keep it walking through American politics for quite a while. And legs which just might lead us to ever more scandals just like this. It is clear from Solyndra that at least some in the Obama Administration were happy to make deals which were bad for the taxpayers and good for Obama donors…the only thing we don’t know is the “Watergate” question: what did the President know, and when did he know it?
In a lot of ways, Obama had better hope he loses next year – the rising tide of scandal bodes ill for an Obama second term, and after the 2012 elections, even if Obama does win, he is likely to be faced with a Congress entirely controlled by the GOP…no friendly Reid holding back the Senate half of government oversight. A re-elected Obama might be forced to do nothing but defend himself against scandal after scandal flowing out of his complete control of government 2009-11.
UPDATE: More information emerging in the “LightSquared” scandal – seems that President Obama was an early investor in the company. To remind, there is evidence that Administration officials pressed an Air Force general to change his testimony to be more favorable to LightSquared. This is getting to be the sort of run-of-the-mill corruption we see out of Chicago…has Obama really been playing that particular game while in DC? Only an investigation will settle the matter…