Your Cash for Their ClunkersHere's what Obama and his ilk will never comprehend: Government cannot create demand. (In fact the private sector has a pretty sorry track record in that regard; just ask Steve Jobs ... uh, sorry.)
Wall Street Journal
Here's some investment advice: When looking for tips on green technology plays, steer clear of the stock pickers located at 1600 Pennsylvania Avenue. They've made a habit of investing your cash in their clunkers.
Following on Solyndra's great success comes Ener1 Inc., a lithium-ion battery maker also promoted by the White House. President Obama gave the company's subsidiary, EnerDel, a shout out in August 2009, in a speech in which he announced $2.4 billion in grants "to develop the next generation of fuel-efficient cars and trucks powered by the next generation of battery technologies."
EnerDel snagged a $118 million grant, and Vice President Joe Biden toured one of its two Indianapolis-area factories as recently as January, citing it as proof that government isn't "just creating new jobs—but sparking whole new industries."
He didn't say profitable industries. Ener1 was founded in 2002, went public in 2008 and has never turned a profit. In August, it restated its earnings for fiscal 2010 at a $165 million loss—nearly $100 million more than previously reported. On September 27 it ousted its CEO, and its share price yesterday was 27 cents—a 95% decline from its 52-week high of $5.95 in January. Nasdaq is threatening to delist the stock, and Ener1 disclosed in a mid-August filing with the Securities and Exchange Commission that it is "in the process of determining whether the company has sufficient liquidity to fund its operations." [link]
Our president and his buddies decided that it was time that America went to "alternative energy,"
America replies, politely, NO. Come back to us when your alternative is cheaper or more effective, or both, rather than neither.
The sad irony? America is paying dearly for Obama's foolishness.