Showing posts with label Corruption. Show all posts
Showing posts with label Corruption. Show all posts
Billions of US Tax Dollars going to Cuba and other foreign countries?

Billions of US Tax Dollars going to Cuba and other foreign countries?

From Mark Tapscott:

Two U.S. senators and a representative worry that billions of tax dollars could be going to Cuba and other foreign countries via criminal schemes designed to defraud Medicare and Medicaid.
The schemes often involve the use of “nominees,” individuals who are paid to be fronts for the actual owners of corporate entities being used in the fraudulent operation. By concealing the identities of true owners, the approach invites its use to funnel tax dollars out of the country.
In a letter made public yesterday to Marilyn Tavenner, acting administrator of the Center for Medicare and Medicaid, senators Orrin Hatch, R-UT, and Tom Coburn, R-OK, were joined by Rep. Peter Roskam, R-IL, said they fear billions of tax dollars are being lost annually as a result.
“Clearly, the program vulnerabilities that facilitate billions of dollars to be stolen from the Medicare program each year also allow for some of that money to be funneled to foreign countries,” the three congressmen said.
“While the fraud itself is unacceptable, the loss of American dollars to foreign countries because of flaws in our system is totally unacceptable. The American people deserve the peace of mind to know that federal officials are doing everything they can to safeguard taxpayers’ dollars and the Medicare program.” . . .
Edwards, Daschle, and Obama involved in discussions to sell public office for campaign endorsement?

Edwards, Daschle, and Obama involved in discussions to sell public office for campaign endorsement?

Remember Illinois Governor Blagojevich soliciting bribes in exchange for Obama's Senate seat?  Didn't It appears that Obama had these types of discussions with others.  The objection was that the offer to sell the office was too early in the election process.  Doesn't Obama have an obligation to report such a crime? From ABC News:

Hindery, a longtime Democrat operative, was part of Edwards' inner circle and was dispatched to contact Barack Obama's campaign, and later Hillary Clinton's campaign, to strike a deal when it was clear Edwards would not win the 2008 presidential nomination.
On Jan. 3, 2008, the night Obama won the Iowa caucuses, Edwards ordered Hindery to contact Sen. Tom Daschle, an Obama adviser. Edwards wanted to team up with Obama, trading his endorsement for the vice-president slot early in the campaign to strike a death blow to Clinton.
Daschle questioned the Edwards' campaign reasoning for broaching the topic with Obama following the first contest of the campaign and on the night Obama was savoring victory, but brought the proposal to his candidate. Obama rejected the deal.
John Edwards Hoped to Be Appointed to the Supreme Court. . . . 
How Daley beefed up his pension payouts, taking a government job for a month to get an extra $50,000 a year in pension

How Daley beefed up his pension payouts, taking a government job for a month to get an extra $50,000 a year in pension

Not bad pay.  Get on the government payroll for a month and get another $50,000 a year for life for retirement. Daley's answer in this piece is just stunning.  If he had to go on another payroll for another month while he was serving as Chicago's mayor, is he really serious in believing that anyone will believe that he didn't understand that he was gaming the system?  From the Chicago Tribune:


Two years into his reign as Chicago's longest-serving mayor, Richard M. Daley took advantage of the state's convoluted pension system to significantly increase his potential payout while saving $400,000 in contributions, a Tribune/WGN-TV investigation has found.
Daley, a former state senator, made it happen by briefly rejoining the legislative pension plan in 1991. He stayed there just one month before returning to Chicago's municipal pension fund, but the switches made him eligible for benefits worth 85 percent of his mayoral salary — a better rate than all other city employees receive.
 
He was just 49 years old at the time. Even if Daley had never won another election, he could have started collecting a public pension at age 55 of $97,750 a year. Without the steps he took, his public pension benefits at that age would have been worth just $20,686.
Of course, Daley went on to win five more elections, remaining ensconced on the fifth floor of City Hall for the next two decades. When he retired last May, his pension benefits had grown to $183,778 a year — about $50,000 more than he would have otherwise received.
Daley declined to be interviewed for this story.
 
His spokeswoman, Jacquelyn Heard, wrote in an email: "I can only assume that his pension was handled in the same manner that anyone's would be, given the length of service — nearly 40 years — in government." . . .
Daley apparently used public funds to pay off people.


The Tribune and WGN-TV already have detailed how Daley used the city's pension funds for political purposes. In 1991, the same year he secured his much larger pension, Daley's administration helped aldermen land a dramatic pension increase, providing them with benefits far exceeding those of the average city worker.
The same legislation, rushed through the General Assembly on the last day of the session, also gave private labor leaders public pensions based on their much higher union salaries. Under Daley's watch, former Chicago Federation of Labor President Dennis Gannon was given a one-day city job that allowed him to collect a public pension based on his $200,000 private union salary. . . . 
Government continuing to play favorites, helping out some companies at the expense of others

Government continuing to play favorites, helping out some companies at the expense of others

Why should the government subsidize businesses? All these subsidies of course help one firm versus another, though this is a more concrete example. From the Politico:

Turning up the heat on Boeing Co., Sen. Tom Coburn wants Congress to bar the Export-Import Bank from financing aircraft sales to foreign airlines if the transactions do “substantial injury” to American carriers competing for the same international routes.
As drafted now, Coburn’s legislative language appears to stop short of a strict, “shall not” prohibition. But he specifically targets “long-range aircraft” akin to Boeing’s new 787 Dreamliner, which is heavily dependent on international sales supported by Ex-Im loan guarantees. . . .
Chicago Most Corrupt City In Nation?

Chicago Most Corrupt City In Nation?

From the local CBS Chicago Radio affiliate:

A former Chicago alderman turned political science professor/corruption fighter has found that Chicago is the most corrupt city in the country.
He cites data from the U.S. Department of Justice to prove his case. And, he says, Illinois is third-most corrupt state in the country.
University of Illinois professor Dick Simpson estimates the cost of corruption at $500 million.
It’s essentially a corruption tax on citizens who bear the cost of bad behavior (police brutality, bogus contracts, bribes, theft and ghost pay-rolling to name a few) and the costs needed to prosecute it. . . .
How useful are NYC's crime numbers?

How useful are NYC's crime numbers?

From the New York Times "NYPD Leaves Offenses Unrecorded to Keep Crime Numbers Down" (Al Baker and Joseph Goldstein, December 30, 2011):

Crime victims in New York sometimes struggle to persuade the police to write down what happened on an official report. The reasons are varied. Police officers are often busy, and few relish paperwork. But in interviews, more than half a dozen police officers, detectives and commanders also cited departmental pressure to keep crime statistics low.

While it is difficult to say how often crime complaints are not officially recorded, the Police Department is conscious of the potential problem, trying to ferret out unreported crimes through audits of emergency calls and of any resulting paperwork.

As concerns grew about the integrity of the data, the police commissioner, Raymond W. Kelly, appointed a panel of former federal prosecutors in January to study the crime-reporting system. The move was unusual for Mr. Kelly, who is normally reluctant to invite outside scrutiny.

The panel, which has not yet released its findings, was expected to focus on the downgrading of crimes, in which officers improperly classify felonies as misdemeanors.

But of nearly as much concern to people in law enforcement are crimes that officers simply failed to record, which one high-ranking police commander in Manhattan suggested was “the newest evolution in this numbers game.” . . .


The article then contains a long list of examples where crimes weren't recorded by the police. This next point is something that every economist would understand;

Despite the new guidelines, some critics say subtle tweaks in police protocol offer opportunities to avoid taking reports. In 2009, the department came up with a new policy that might seem inconsequential: Robbery victims would have to go to the station house to give their reports directly to a detective or patrol supervisor.

The intent was to get an investigator on the case as quickly as possible, but one police commander said supervisors were aware that another consequence could be that fewer crimes would be reported.

The policy was restored to its original form last year, with uniformed officers once again allowed to take the initial report of a robbery. “A police report wouldn’t get made because they make you wait in the police station for hours,” one commander said. Eventually, he added, the crime victim would give up and leave.

"Come clean" Lawrence O'Donnell

Lawrence O'Donnell on his MSNBC show introduced Jon Gruber this way the other night.

Lawrence O'Donnell, MSNBC host: "Alright, come on. Come clean. You were in the room with President Obama discussing healthcare reform and you did in fact work with the Romney administration in Massachusetts. Come on Professor, you've got to tell us the truth."

Jonathan Gruber, MIT professor: "The truth is that the Affordable Care Act is essentially based on what we accomplished in Massachusetts. It's the same basic structure applied nationally. John McDonough, one of the other advisers,who work in both Massachusetts and advised the White House said 'it's the Massachusetts with three more zeros.' And that's basically a good description of what the federal bill did." . . .


Is it true that Gruber work with the Romney administration on Romney care? Well, Gruber helped advise both Romney and Democratic state legislators. Is it true that he met with Obama to discuss what happened in Massachusetts? Yes, but Gruber was a lot more involved than O'Donnell indicates and he was involved in such a way that might affect how accurately he portrays events. Namely, that Gruber was paid almost $400,000 by the Obama administration to help them push Obamacare. Even worse, Gruber has already been attacked for making public statements without making this deep involvement with the Obama administration clear. What is of greater concern now is that the Obama administration is targeting Romney and they may be using Gruber coming forward right now to achieve that goal.

Democrats might be using Gruber to try to weaken Romney's chances of getting the Republican nomination.

MIT economist Jonathan Gruber, one of the leading academic defenders of health care reform, is taking heat for failing to disclose consistently that he was under contract with the Department of Health and Human Services while he was touting the Democrats' health proposals in the media.

Gruber, according to federal government documents, is under a $297,600 contract until next month to provide "technical assistance" in evaluating health care reform proposals. He was under a $95,000 HHS contract before that. . . .


Gruber claims that the money didn't influence his policy recommendations, but he misses the point. He should have revealed that he was getting $392,600 from the Obama administration and then let the viewers of the shows that he was on make the call. Here is what Kate Pickert wrote on a blog for Time Magazine:

Still, if I had known Gruber had such a contract, I would have disclosed this fact to readers when I quoted him. (For the record, I would have still quoted him and I was aware that he was one policy expert among many who advised Congress. Quoting him in an Oct. 13, 2009 story I identified him as "a respected MIT economist who has advised lawmakers on health reform.") But the attribution should have gone further. I'm of the belief that readers should have as much information about sources as possible within the confines of journalistic writing. . . .


A blog at the Washington Post has this:

I wasn't aware of that, and if I had been, I would've made sure it was disclosed when I quoted Gruber. On the other hand, the implication that Gruber is somehow a paid shill for this bill belies a fairly long and consistent record in support of health reform, and in particular, this type of health reform. . . .


What surprises me is how sympathetic these discussions are towards Gruber. I can't find any correction or note on this in the newspaper or main website for the Washington Post. Here is a critique of Gruber's piece. So how much of the media is mentioning the amount of money that Gruber received? A Google News Search at 2:30 AM the day after the story on Gruber broke got 10 hits searching on ""Jonathan Gruber" $296,600 OR $400,000 OR $392,600." Five of those ten were to the leftwing blog (FireDogLake).



Personally, I don't think that the $392,600 altered Gruber's views, though I would be willing to bet that Gruber supports campaign finance regulations because he claims that even much, much smaller amounts can corrupt politicians. However, the amount of money that he was given is also pretty amazing for an academic doing consulting for the government. A Google News Search on "Jonathan Gruber" for 2008 and 2009 found 240 hits, most very prominent places.

In defending himself, Gruber told Politico: “I have been completely consistent with my academic track record.” Did Gruber alter his position on health care regulations over time? Say since 2007? It appears that the answer is "yes." Merrill Goozner, a health care policy blogger and NYU professor, notes:

Hmmm. What about this March 2007 paper for the National Bureau of Economic Research, which he co-authored. It looked at the effect of higher out-of-pocket co-pays for retired public employees in California. Gruber found that they led to higher hospitalization rates as old folks with chronic diseases like diabetes and heart disease cut back on physician visits and necessary drugs.

These offset effects are concentrated in patients for whom medical care is presumably efficacious: those with a chronic disease. . . Our findings suggest that health insurance should be tied to underlying health status, with chronically ill patients facing lower cost-sharing.

What will happen after the excise tax hits high-cost insurance plans, according to Gruber today? 80 percent of employers will ratchet down plan benefits to keep their costs under the tax cap. The only way they can do that is by raising co-pays and deductibles and eliminating benefits. The extra money employers save will be returned to workers as higher wages, which they can choose to either use to pay for health care or pay other bills. And as his own research points out, many will choose to cut back on necessary care, and some will wind up in the hospital.

“There’s literally no evidence out there that people are going to suffer,” he told the Washington Post earlier this week. He should re-read his own paper.
How Democrats run Tax Policy: The Example of Connecticut

How Democrats run Tax Policy: The Example of Connecticut

Raise Taxes and they decide what businesses you want. I disagree with the WSJ that this policy is arbitrary. If you want an example of how of this not being arbitrary, look at how Obama rewarded a campaign contributor with a half billion dollar very low interest loan to Solyndra.

For the latest instruction in arbitrary tax policy, we turn to Connecticut, where Governor Dannel Malloy is opening the state's coffers to retain businesses ready to bolt his new tax regime. Mr. Malloy has promised $20 million of forgivable state loans to UBS AG if it keeps at least 2,000 jobs in the Nutmeg State for five years.

Look for a line to form outside the Governor's office. Mr. Malloy parlayed a narrow election victory in November into a $2.6 billion new tax increase this spring, the biggest in state history. Key among the dozens of targets are state businesses. A "temporary" 10% corporate tax surcharge signed in 2009 by former Republican Governor Jodi Rell was extended, hitching Connecticut corporations with annual gross income of $100 million with a 20% surcharge for 2012 and 2013.

Mr. Malloy now says the state is "open for business," though it sure helps if the Governor likes your business. Under his "First Five" initiative, he offered tax perks to the first five businesses that brought 200 jobs to Connecticut within two years or pledged $25 million investment plus 200 jobs within five years. The lucky winners include health insurer Cigna Corp, sports network ESPN and a company called TicketNetwork, which will each get tens of millions in tax incentives. . . .

Government Loan Guarantees are sometimes pretty costly to taxpayers

There is a reason why the private market won't give companies a loan sometimes. Obama gave them $535 million, or $483,363.00 per employee. Of course, we know what a waste of resources solar energy is. From The Hill newspaper.



“Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion,” Solyndra's CEO said.



A California-based solar company that received a $535 million loan guarantee from the Obama administration announced Wednesday that it will shut down.



The company, Solyndra Inc., said Wednesday it would suspend its manufacturing operations and lay off 1,100 employees effective immediately. The company said it intends to file a petition for Chapter 11 bankruptcy protection.



“Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion,” Solyndra CEO Brian Harrison said in a statement. “Raising incremental capital in this environment was not possible. This was an unexpected outcome and is most unfortunate.” . . .




UPDATE: More stories on case. From ABC News:



ABC News and the Center for Public Integrity's iWatch News first reported on questions about the choice of Solyndra for the loan in May after the Department of Energy disclosed it was being forced to restructure its loan package for the company, which was showing early signs of financial distress. One of Solyndra's major investors was George Kaiser, an Oklahoma billionaire who raised between $50,000 and $100,000 for Obama during the 2008 election. . . .That's when the Government Accountability Office issued an unusually blunt assessment of the Energy Department's loan program in general, concluding that the department had "treated applicants inconsistently, favoring some and disadvantaging others." The government loan guarantee was supposed to spur 1,000 full-time jobs once Solyndra's solar plant was fully operational. Instead, as the company announced Chapter 11 bankruptcy today, reports surfaced that 1,100 would lose their jobs. . . .




From Fox News:



Solyndra LLC of Fremont, Calif., had become the poster child for government investment in green technology. The president visited the company in May 2010 and noted that Solyndra expected to hire 1,000 workers to manufacture solar panels. Other state and federal officials such as former Gov. Arnold Schwarzenegger and Energy Secretary Steven Chu also visited the company's facilities.But hard times have hit the nation's solar industry. Solyndra is the third solar company to seek bankruptcy protection this month. Officials said Wednesday that the global economy as well as unfavorable conditions in the solar industry combined to force the company to suspend its manufacturing operations.The price for solar panels has tanked in part because of heavy competition from Chinese companies, dropping by about 42 percent this year.Republicans have been looking into the Solyndra loan for months. The House Energy and Commerce Committee subpoenaed documents relating to the loan from the White House Office of Management and Budget. GOP Reps. Fred Upton of Michigan and Cliff Stearns of Florida issued a joint statement on Wednesday saying it was clear that Solyndra was a dubious investment."We smelled a rat from the onset," the two lawmakers said.Shortly after the company's announcement, it became clear that the bankruptcy would serve as further ammunition to criticize an economic stimulus bill that provided seed money for solar startups -- even though officials said interest in providing Solyndra with guaranteed government loans was first sought under the Bush administration. . . .




Clearly we must have better ways to spend this Stimulus money. From The Week:



If massive federal spending does actually succeed in permanently creating or saving large numbers of jobs (an assertion which is often long on rhetoric and short on evidence), it must rely on targeting companies based on their ability to compete rather than merely their participation in a political effort like “green energy.” If we are going to saddle our economy with huge new debts in the hope that we can stave off another recession, we really need to be more sure that the investments we make are cost-effective instead of merely politically convenient. The Obama Administration appears to have neglected that imperative the first time around.




Note that Solyndra couldn't get the same loan guarantee from private banks for a very good reason. Read post. This reminds me of how the government interfered with GM's business decisions.



Based on the evidence assembled so far, no Wall Street investment officer would have recommended the loan or, if he had, would have kept his job for five minutes. Pouring $535 million into an objectively lousy investment is not how Wall Street makes money.



But it all too often is how politicians get re-elected. “Green jobs” are a big plus for the “environmental movement,” which is a very important liberal special interest. That backing these particular jobs was also a favor for a very important Obama political fundraiser was another plus.



This is a textbook case of capital being allocated for political reasons (it will earn us votes) instead of economic reasons (it will make us rich). It is also further proof that politicians can’t make economic decisions even if they wanted to. And they can’t make them for the exact same reason pigs can’t fly: they aren’t designed to. . . .




UPDATE: CNBC blames competitive pressure from China. Apparently, even a giant government subsidy can’t change the realities of the global marketplace. As long as American workers are far more expensive and not far more productive than equally qualified workers elsewhere, subsidies and finger-pointing can’t produce increased employment. . . .



EDITORIAL, "Obama’s solar stimulus snafu," Washington Times, Wednesday, August 31, 2011



Founded in 2005, the company manufactured a rooftop solar panel designed chiefly for commercial applications. Solyndra was a poster child of the utopian future envisioned by the Obama administration when oodles of green jobs would relieve the nation's unemployment rate, generate clean energy and help the environment. Energy Secretary Steven Chu rushed through loan guarantees, and money began to flow to Solyndra from the Federal Financing Bank. The terms of the loans, just more than 1 percent interest in most cases, were well below the rates competitors had to pay.Competition in the solar marketplace is stiff, particularly from China, and Solyndra couldn't make a profit. In the spring of 2010, the company spent around $3.5 million promoting an initial public stock offering (IPO) to raise $300 million to retire some of the government debt, but the company couldn't escape an inconvenient truth: In the first three quarters of 2009, it grossed $59 million against production costs of $108 million. Solyndra argued that economies of scale would eventually drive down the red ink, but the investment community wasn't impressed, and the IPO was withdrawn.When government loan guarantees of more than half a billion dollars were secured, Solyndra bragged that its new plant expansion would create 3,000 construction jobs and 1,000 permanent manufacturing positions. On a plant-site visit, Vice President Joseph R. Biden Jr. enthused, "These are jobs that won't be exported." Not so, Joe. After the failure of the IPO attempt, Solyndra sent half its manufacturing to China. . . . .




UPDATE: Another alternative energy scandal.



In June, House Republicans passed the 2012 Homeland Security appropriations bill, which included an amendment adding $1 billion to the Disaster Relief Fund of the Federal Emergency Management Agency (FEMA). In a sensible move for taxpayers, the amendment offsets this new disaster funding by cutting spending on the Advanced Technology Vehicles Manufacturing Loan Program. This may ring a bell with readers as the funding conduit for one of Washington's adventures in crony capitalism.



In 2009, the Department of Energy announced that it would loan more than half a billion dollars through this program to a California-based company, Fisker Automotive, to make luxury electric cars. About a month after the loan package was conditionally approved, CEO Henrik Fisker and Joseph Biden appeared in the Vice President's hometown of Wilmington, Delaware to announce that Fisker would now be making some of its cars at the city's old General Motors factory.



At the event, Mr. Biden described many "long talks" he'd had with Mr. Fisker. The Vice President's office later said that Mr. Biden didn't make any direct appeals to Energy before the loan was approved, but Delaware's chief of economic development told the Journal that Mr. Biden was the state's "secret weapon, except there is nothing secret about Joe Biden."



All of this is background to say that the GOP has found the federal program that is arguably the most deserving of a cut to free up funds for disaster victims. But Senate Democrats refuse to pass the House bill and Mr. Cantor has earned their ire this week by continuing to press for cuts in corporate welfare. . . .




UPDATE: More on potential corruption in giving the low interest rate loan to Solyndra.



ABC News discovered that the solar-tech firm Solyndra got unusually low interest rates on its federally-guaranteed loans before it collapsed last month, sending 1000 workers to the unemployment line in California. Other green-tech firms receiving loans paid as much as three and four times the interest rate Solyndra secured for its $535 million from Barack Obama’s 2009 stimulus bill from the Treasury’s Federal Financing Bank. ABC notes that other green-tech firms didn’t have the connections that Solyndra had to Obama:



The $535 million loan to Solyndra Inc., issued by the U.S. Department of Treasury’s Federal Financing Bank, included a quarterly interest rate of 1.025 percent, the government bank reported in July. Of 18 Energy Department loans cited in the bank’s report, Solyndra’s rate was lowest. Eight other Energy Department projects, each also backed by the Federal Financing Bank, came with rates three or four times higher, the report shows.



That treatment is in keeping with the history of the loan to the California solar panel maker, an arrangement inked in September 2009 with great fanfare — and touted, not long after, during a factory visit from the president. Monthly government bank reports filed since then reveal Solyndra’s rate as the lowest for any energy-related project in nearly every report; in every case its rate was well below that of most energy projects, which ranged from cutting-edge electric car makers to wind and solar ventures. …



Solyndra’s most prolific financial backer is George Kaiser, an Oklahoma oil billionaire who was a bundler of campaign donations for Obama’s 2008 race. Kaiser’s Argonaut Ventures and its affiliates have been the single largest shareholder of Solyndra, according to SEC filings and other records. The company holds 39 percent of Solyndra’s parent company, bankruptcy records filed Tuesday show.




And guess who gets paid out of the bankruptcy first?



Under terms of the bankruptcy filing, investors including Argonaut — which led a $75 million round of financing for Solyndra earlier this year — will stand in line before the federal government and other creditors.



When Solyndra announced that round of fundraising this February, it noted that the DOE had refinanced terms of the $535 million loan to extend the payment period. Under an “inter-creditor agreement” cited in the bankruptcy filing, the investors in the $75 million financing are considered first lien holders. That leaves Obama officials to confront the prospect of waiting behind private companies.




Don’t think that this happened by accident. Before Obama took office, Solyndra applied for the federally-subsidized green-tech loan, and only scored a B+ from appraisers, which ABC calls a “red flag.” . . .



The White House has to explain why it overruled the FFB’s auditors and ignored the warnings from appraisers while fast-tracking over half a billion dollars to a teetering company at loan rates far below what FFB charged other companies. . . .




UPDATE: Now the FBI has raided the Solyndra offices.



But at the end of 2010 they had privately confided to Energy Department officials that Solyndra was rapidly going broke and on the verge of shutting down, according to newly released records and interviews. Solyndra’s inability to repay its debt leaves taxpayers liable for repaying the loans.



In February, the Energy Department agreed to a refinancing for Solyndra that allowed investors who put in new money to get their funds repaid first — before taxpayers — if the company defaulted on the federal loan.
. . .



Federal agents conducted a day-long search at the California headquarters, removing boxes and copying computer files. They also searched the home of the company’s chief executive, Brian Harrison, according to Solyndra spokesman David Miller.



Miller said he believed the FBI was focusing on the loan guarantee, which also has been the subject of a House subcommittee investigation. . . .




UPDATE: Question: Suppose a business executive tried to have the types of excuses that the government offers here for a bad investment, what would the response be? Would his investors simply say "OK, you didn't anticipate the large government subsidies"? From Fox News:



The testimony came as Republican and Democratic lawmakers raised sharp questions about the decision that ultimately left taxpayers on the hook for millions, and as newly released emails show administration officials were raising doubts about the loan proposal to Solyndra months before it was finalized.



Rep. Fred Upton, R-Mich., said the program was "shrouded in secrecy and uncertainty," questioning whether the loan represented "one bad bet" or the "tip of the iceberg."

Jeffrey Zients, deputy director of the White House budget office, acknowledged that Solyndra's bankruptcy will "limit the government's recovery of funds." He called the outcome "very unfortunate."

But at a hearing Wednesday, he said administration officials provided a "thorough examination and analysis" of the loan proposal and said a "challenging global solar market" has made business harder for companies like Solyndra. . . .



Silver said Solyndra's projects were considered "advanced" dating back to 2008. "In 2009, Solyndra appeared to be well-positioned to compete and succeed in the global marketplace," Silver said.

But emails released by the House Energy and Commerce Committee show that the relevant credit committee decided "not to engage in further discussions with Solyndra" in the final days of the Bush administration. After the change in administration, officials restarted the loan review process for Solyndra.

"A half a billion dollars that was not supported in January under the Bush administration was ... conditionally recommended in March," Rep. Joe Barton, R-Texas, pointed out. . . .




From Mary Kissel at the WSJ's Political Diary:



To the annals of extraordinary government spin, add Deputy Secretary of Energy Daniel Poneman, who just published a short defense of the Obama administration's backing of Treasury's 2009 $535 million loan guarantee to now-failed solar company Solyndra. "Winning will require substantial investments," Mr. Poneman wrote. "Last year, for example, the China Development Bank offered more than $300 billion in financing to Chinese solar manufacturers."



Set aside that if Beijing wants to use its own taxpayer cash to back solar investments, that's an effective subsidy to U.S. consumers of solar panels, which is no bad thing. Mr. Poneman's defense of the Solyndra investment also had the misfortune to land on the same day that the Washington Post revealed more evidence that the White House exerted political pressure on the Office of Management and Budget to approve the loan. In one email, a staffer complained about "rushed approvals" and a lack of sufficient time "to do our due diligence reviews," in direct opposition to Mr. Poneman's claims that the Solyndra deal was prudently vetted.



The administration is trying to play down the Solyndra scandal, with a White House spokesman telling the Post that the loan guarantee was "merit-based." . . .




From Politico:



ABC News reports on newly released emails from the administration from two years ago:



"This deal is NOT ready for prime time," one White House budget analyst wrote in a March 10, 2009 email, nine days before the administration formally announced the loan.



"If you guys think this is a bad idea, I need to unwind the W[est] W[ing] QUICKLY," wrote Ronald A. Klain, who was chief of staff to Vice President Joe Biden, in another email sent March 7, 2009.




And The Washington Post reports that the administration tried to “rush federal reviews” on the loan so that Biden could make the announcement in September 2009 at a groundbreaking for Solyndra’s new factory:



One e-mail from an OMB official referred to “the time pressure we are under to sign-off on Solyndra.” Another complained, “There isn’t time to negotiate.”



“We have ended up with a situation of having to do rushed approvals on a couple of occasions (and we are worried about Solyndra at the end of the week),” one official wrote. That Aug. 31, 2009, message, written by a senior OMB staffer and sent to Terrell P. McSweeny, Biden’s domestic policy adviser, concluded, “We would prefer to have sufficient time to do our due diligence reviews.”




From USA Today:



In March 2010, the accounting firm PricewaterhouseCoopers issued a standard but stern warning about Solyndra, a California solar panel manufacturer: The company wasn't making money and never had, which raised "substantial doubt about its ability to continue as a going concern." Yet when President Obama visited Solyndra's plant in Fremont two months later, he gave a rousing pep talk and declared that "the future is here." . . .

Even if Solyndra's collapse is nothing more than good intentions gone awry — a big if — it is a cautionary tale about why government should be extremely wary about betting tax dollars on specific companies. If there's one thing the marketplace virtually always does better than government, it's picking individual successes in an uncertain and highly competitive business. In fact, government involvement can unfairly tilt the playing field toward one company and away from competitors. . . .




Solyndra employee claims: "Everyone knew that the plant wouldn’t work. But they still did it. They still built it."



Is this the way the government should be run?

Is this the way the government should be run?

If he does this to other commissioners, what happens to those who are regulated by the Nuclear Regulatory Commission? Do you really want to give people like this the power that government has? If this weren't being done by a Democrat, would it be getting more attention? From Politico:



The conflict plays out in various, often petty, ways. For example, Jaczko has developed a system of approval for commissioners requesting foreign travel. The system had simple rules, including one that required only Svinicki [a Republican] to produce a written justification for such requests.



An NRC inspector general report earlier this year noted that Jaczko “used foreign travel as an incentive for supporting him on issues.”



According to the report, Jaczko told investigators that “it was his responsibility to decide who best represented the agency and if he had colleagues who did not support him on votes, he was not likely to send them to represent him and the agency on international travel.”



The IG report also referenced several accounts from current and former NRC staff members who said Jaczko’s aggressive behavior created “an intimidating work environment,” in part because he often yelled at his colleagues on the commission.



Dale Klein, a former NRC chairman, said he believed the report presented a tamer version of accounts than what was collected by investigators.



Klein described Jaczko’s behavior as “ruling by intimidation” and by cornering his colleagues on agency issues through the media. When it came to Jaczko’s interactions with Svinicki, he said, “While I was there, he would oftentimes yell at her.” . . .
Do leaner times lead to more corruption of the police?

Do leaner times lead to more corruption of the police?

There is a widely accepted argument among economists that if you want to eliminate corruption, raise salaries and then punish and fire those caught engaged in corruption. This piece at Fox Business seems related.

. . . . A report released this week by the County of Los Angeles Office of Independent Review makes a strong, albeit anecdotal, argument that complaints against sheriff's deputies have increasingly turned from "minor theft-type allegations" to allegations of more-serious financial crimes, because...well, times are tough and they have bills to pay, too.
Last year, the Los Angeles County Sheriff got hit with a $100 million budget cut. So now deputies can't get the extra pay they came to depend upon, says the report, which was first reported by the Los Angeles Times.
"Four or five years ago, most deputies who wanted to work overtime to earn extra money ...could generally do so quite easily," the report reads.
"While some deputies worked overtime...to earn extra money to save for leaner times," the report says, "other deputies may have adopted a lifestyle beyond that which their regular salary afforded.
"Regrettably, the current financial crisis...may have contributed to the rise in poor decision-making..."
The report cites examples without mentioning names of the accused.
Mirroring the times, two deputies are under federal indictment for alleged mortgage fraud--taking out loans that exceeded the sales prices of homes they flipped. One faces 40 years in prison, the other 105, the report said.
Other cases involved insurance fraud:
One deputy allegedly set his car on fire. "In addition to the three vehicles he owned, the deputy had a home with a substantial mortgage and three credit cards with balances of over $1,000 each," the report noted.
Another staged a burglary. Another ditched his car in Mexico and claimed it was stolen.
Until recently, fallen deputies were more likely to be accused in petty offenses such as shoplifting, said Michael Gennaco, chief attorney for the oversight office that produced the report, but financial pressures have led to larger frauds. . . .
Sen. Clair McCaskill has some expensive plane trips

Sen. Clair McCaskill has some expensive plane trips

Sen. Clair McCaskill apparently made mistakes in her previous FEC filing that omitted almost $300,000 in donations and expenditures. One thing in a Politico article that caught my eye was the very high prices she paid for what were fairly short plane trips. If these trips are on her own plane, the question is whether she is paying so much that she is actually using the campaign donations to make a profit on each plane trip. She has argued that overall she hasn't made real money from the plane, but that isn't really the relevant question. Possibly she would have lost a lot of money if she hadn't used the campaign to funnel money to herself through the plane. The $3,460 round trip within Missouri is pretty amazingly high.

The amendments accounted for a $1,395 roundtrip flight from St. Louis to Kansas City on Dec. 15, 2008; an $1,809 roundtrip flight from St. Louis to Chicago on Nov. 1, 2009; and $3,460 for a plane trip from St. Louis to Kansas City to Springfield, Mo., and back to St. Louis in April 2010. However, $912 of that third trip was for official Senate business. . . .
BATF head says his superiors at the Justice Department of stonewalling Congress to protect political appointees

BATF head says his superiors at the Justice Department of stonewalling Congress to protect political appointees

Obama administration stonewalling to protect political appointees.

The head of the Bureau of Alcohol, Tobacco, Firearms and Explosives has admitted that his agency, in at least one instance, allowed sales of high-powered weapons without intercepting them -- and he accuses his superiors at the Justice Department of stonewalling Congress to protect political appointees in the scandal over those decisions.
Acting ATF Director Kenneth Melson made the disclosures about the so-called Operation Fast and Furious in an interview with congressional investigators looking into the controversial anti-gunrunning initiative.
The operation was designed to track small-time gun buyers up to major weapons traffickers along the U.S. border with Mexico. Critics estimate that 1,800 guns targeted in the operation are unaccounted for, and about two-thirds of those probably are in Mexico.
Melson's acknowledgement is the first by any senior ATF leader that confirms some of the criticism that Republicans on Capitol Hill have been leveling at Fast and Furious. The objections have resulted in congressional hearings and an inquiry by the Justice Department's inspector general. . . .
Barney Frank used his influence while sitting on a committee that regulated Fannie Mae to get his lover a well paid job there

Barney Frank used his influence while sitting on a committee that regulated Fannie Mae to get his lover a well paid job there

Barney Frank doesn't think that this is a very big deal. Just because congressmen have spouses that work in government doesn't mean that they were sitting on the oversight committees of the agencies that hired those spouses. Nor does it mean that they used their influence to get their spouse hired. From the Boston Herald.

U.S. Rep. Barney Frank admitted he helped his ex-lover land a lucrative post with Fannie Mae in the early 1990s while the Newton Democrat was on a committee that regulated the lending giant — but he called questions of a potential ethical conflict “nonsense.”

“If it is (a conflict of interest), then much of Washington is involved (in conflicts),” Frank told the Herald last night. “It is a common thing in Washington for members of Congress to have spouses work for the federal government. There is no rule against it at all.”

Frank said he helped his former longtime companion, Herb Moses, land a job at Fannie Mae in 1991 after Moses graduated with a master’s degree in business administration from Dartmouth College. Frank said he was approached by a Fannie Mae executive and vouched for Moses, who formerly worked as an economist in the Department of Agriculture. . . .
Look at the special favors given to Nevada and Pelosi's district

Look at the special favors given to Nevada and Pelosi's district

Is it a coincidence that Pelosi's congressional district and Harry Reid's Nevada rate such special exemptions? This smacks of corruption, that those who have the right political views get rewarded while those on the other side are punished.

Nevada got a partial waiver from the health care law - a significant development that Democrats are dismissing as par for the course and Republicans are claiming as a political victory.

The Health and Human Services Department announced late Friday that Nevada had secured a statewide waiver from certain implementation requirements of the Obama administration's health care law, because forcing them through, the department found, "may lead to the destabilization of the individual market."

The announcement makes Nevada one of only three states to have compliance requirements under the health care bill waived.

Nevada's Insurance Division had appealed to the feds to reduce the federal requirement that health plans serving people who buy insurance on their own must spend at least 80 percent of the money they collect on medical expenses. Under the national rule, companies that don't spend that percentage of revenue on medical costs have to cut policyholders rebate checks starting this year. . . .


And this.

Nancy Pelosi's San Francisco district was the hands-down winner in the latest set of health care law waivers announced by the Obama administration.
More than three dozen businesses with locations in Pelosi's district were granted temporary exemptions from the law in April, according to information released by the Department of Health and Human Services. The businesses -- mostly restaurants and cafes, with a few upscale hotels and clubs mixed in -- accounted for about 20 percent of all waivers granted last month.
Pelosi's office did not respond to a request for comment. It was unclear why so many of the affected businesses were in her district, though the Obama administration, in a statement on the White House blog, said the original waiver requests came from a "third-party administrator" called Flex Plan Services.
According to the administration, the company administers health plans in several states, including California, and made a total of 92 waiver requests in March. Many of them were apparently for businesses in San Francisco. . . .
Michael Barone: Obama's Gangster Government

Michael Barone: Obama's Gangster Government

Michael Barone doesn't mince words:

Most important, it requires the General Accounting Office to conduct an audit of the waivers from the Democrats' health care bill that are being issued in large numbers by the secretary of health and human services.
This will raise an uncomfortable question. If Obamacare is so great, why are so many trying to get out from under it? And, more specifically, why are so many Democratic groups trying to get out from under it?
The fact is that HHS Secretary Kathleen Sebelius has granted more than 1,000 waivers from Obamacare. Many have been granted to labor unions. Some have been granted to giant corporations like McDonald's. One was granted to the entire state of Maine.
By what criteria is this relief being granted? That's unclear, and the GAO audit should produce some answers. But what it looks like to an outsider is that waivers are being granted to constituencies that have coughed up money (or, in the case of Maine, four electoral votes) to the Democrats.
If so, what we're looking at is another example of gangster government in this administration. The law in its majesty applies to everyone except those who get special favors.
The GAO has also been ordered to produce audits on the effect of Obamacare on health insurance premiums. This is likely to reveal that the president did not keep his promise that you could keep your current health insurance if you want to.
And there will be an audit of the comparative effectiveness bureaucracy established in the 2009 stimulus package. Comparative effectiveness is supposedly an objective study of which medical techniques are most effective. But anyone who looks closely finds that the experts are constantly changing their minds, which suggests that this is more alchemy than science -- and maybe political favoritism, as well.
All of which tends to undercut the thrust of Obama's obviously-aimed-at-the-2012-campaign message: We can continue to fund Medicare and Medicaid indefinitely if we just tax rich people a little more. . . .
Democrats attack Republicans for protecting tax breaks for wealthy Companies?

Democrats attack Republicans for protecting tax breaks for wealthy Companies?

It takes real chutzpa for Democrats to take this line.

Maryland Rep. Chris Van Hollen, the top Democrat on the Budget Committee, slammed Ryan's plan in a press release Sunday. "It is not courageous to protect tax breaks for millionaires, oil companies and other big-money special interests while slashing our investment in education, ending the current health care guarantees for seniors on Medicare, and denying health care coverage to tens of millions of Americans," Van Hollen said. . . .


Remember this story about Obama and the Democrats giving huge payoffs to GE and other big companies?

Democrats don't seem to understand that across the board tax cuts are a lot different than the type of targeted benefits that they specialize in.
One of Obama's top fundraisers obtains a half of billion for "Green" Projects, and no that isn't a pun for money projects

One of Obama's top fundraisers obtains a half of billion for "Green" Projects, and no that isn't a pun for money projects

From Judicial Watch:

One of President Obama’s top fundraisers has been rewarded with more than half a billion dollars in stimulus money for “green” projects and a coveted adviser position at the federal agency that regulates his highly profitable business ventures.

It’s the very cycle of money, influence and access that Obama vowed to break when he came to Washington, according to the investigative journalism group that broke the story this week. Not only has the president’s money man benefited from the astounding sums of cash the administration has dedicated to “clean energy” startups, he also has extraordinary access to the White House and serves as an adviser to the cabinet official (Energy Secretary Steven Chu) who regulates his industry.

The prolific Democratic fundraiser, Steve Westly, worked in the Jimmy Carter Administration and was once a public official in California where he currently operates a lucrative “green” business (Westly Group) that’s boomed in just a few years. The Westly Group has raked in more than half a billion dollars in loans, grants or stimulus money from the Department of Energy which is doling out around $35 billion to politically-connected businesses that help reduce pollution.

A frequent White House visitor Westly is also a member of a government advisory board on energy policy, which means he actually “advises” Energy Secretary Chu, the administration official in charge of distributing the agency’s green startup cash. The money is supposed to help clean technology firms expand in order to meet Obama’s goal of lowering dependence on foreign oil. . . .