Tuesday, October 11, 2011

What was his grade in Econ 101?

Dissembling about the capital destruction debacle that was his Administration's loan guarantee to bankrupt green-energy firm Solyndra, President Obama told ABC News last week that "if we want to compete with China, which is pouring hundreds of billions of dollars into this space...we've got to make sure that our guys here in the United States of America at least have a shot."

Of course if the president were better schooled in basic economics, he would well understand that "our guys" do have a shot to compete in this space thanks to U.S. capital markets being the deepest in the world. Thanks to angel financing, venture capital, PIPEs, convertible bonds, bonds themselves, and stock issuance, those with a good idea have myriad options when it comes to marrying their innovation with capital.

And there lies the obvious problem with Solyndra. Unable to raise needed operating funds in the private markets, it was forced to go to the federal government to get what our markets would not provide.



Becbeq said...

I'd bet money that this fool never stepped foot in an Econ 101 class. Or if he did, he paid as much attention to the professor as he did to Reverend Wright.

Anonymous said...

Democrats see the law of supply and demand as an inconvenience. They take it upon themselves to try to break it for the common good. But the law of supply and demand only bends. It never breaks. It's when it snaps back after being distorted by politicians, that it does all the damage.