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  • Obama Slams Private Equity, But His Own 'Investors' Do Quite Well

    President Obama and his surrogates have repeatedly insisted that federal backing for green energy companies like Solyndra is somehow superior to private equity investing, since federal bureaucrats are concerned with more than enriching investors.

    But “investors” in an Obama presidency – i.e. his top supporters – have reaped the benefits of many of his administration’s green energy projects, at the expense of taxpayers who see no substantive return.

    Take Fisker Automotive, the Energy Department-backed electric vehicle manufacturer that announced last year that it would assemble its luxury Karma model in Finland, despite having drawn nearly $200 million of its $529 million federal loan.

    Fisker now says it may never assemble cars in the United States. In an interview with ABC News published Wednesday, a company spokesman warned that if DOE does not reopen the taxpayer spigot, Fisker may consider “other options” for the location of the assembly plant for its newest model, the Atlantic.

    If the company opts to assemble the car overseas, American taxpayers will have sunk nearly $200 million into a company that created jobs that no American will fill.

    That’s not to say that no American will have benefited from the federal loan to Fisker. The folks at California venture capital firm Kleiner Perkins Caufield & Byers will enjoy returns on their investment in the company even if it does assemble the Atlantic overseas.

    Kleiner Perkins is teeming with political connections and ties to the Obama White House. One of its senior partners is none other than former Vice President Al Gore.

    Less known members of the Kleiner Perkins team still enjoy strong relationships with Obama and other administration officials. Partner John Doerr hosted the president at his Silicon Valley home for a meeting with top technology executives last year. Other attendees included Google chairman Eric Schmidt and Facebook CEO Mark Zuckerberg.

    Doerr isn’t just an Obama supporter. He has played an active role in forming green energy policy over the last few years. He sat on the president’s Economic Recovery Advisory Board, and even submitted detailed recommendations for green energy subsidies to Congress in the weeks before Obama took office.

    Other Kleiner Perkins executives have also been key supporters of the president. Partner David Blood helped organize a $2,300-a-head fundraiser for then-Senator Obama during his 2008 campaign. Obama has received $19,000 in contributions from the company’s employees, according to the Center for Responsive Politics.

    The president disdainfully discusses private businessmen seeking nothing more than a higher return for their investors. But some of the administration’s forays into venture capitalism – such as its work with Fisker – have enriched key Obama “investors” without yielding much for the American people.

    Washington Post columnist Marc Thiessen detailed even more examples in a recent column.

    Posted in Ongoing Priorities, Scribe [slideshow_deploy]

    7 Responses to Obama Slams Private Equity, But His Own 'Investors' Do Quite Well

    1. Timmy Howard says:

      I'm sorry, how do tax payers NOT receive a substantive return on investment on green projects? You've got 1 example here, that's great. But it doesn't go anywhere near the distance you'd need to to make a statement like the one in this article's title. Have you looked at the billions of public investment in clean energy projects? No? Didn't think so.

    2. Bobbie says:

      obama slams private equity instead of understanding the acceptance that it deserves all the credit America's principles and freedom promotes and very beneficial to the economy, while his investors' do quite well with no accountability, no responsibility using Obama's pocket full of America's "change" to cover both!

    3. Bill Ebeling says:

      So what's new? This has been going on for years! How do we stop it when they are never held accountable?

    4. tim123 says:

      obama's green obsession is not based on any reality. once again he is trying to appear cool.

    5. “The louder he talked of his honor, the faster we counted our spoons.”
      ? Ralph Waldo Emerson, The Conduct of Life

    6. #quotation night (no original thoughts of my own at midnight):

      'A man generally has two reasons for doing a thing. One that sounds good, and a real one.' ~J. Pierpoint Morgan

    7. Bobbie says:

      that's a no brainer when HIS investors don't have to be accountable to responsibilities, while the over powered foreign American government mentality regulates everybody else into uncertainty with America(ns) hard earned money forcing private sector impractical responsibilities beyond the business need and because of his interference and his unguided disrespects for the peoples' constitution, that's undeserving and uncalled for and unfair and irrational and egotistical and dangerous and deadly. The more rules government imposes the more corrupt the government and this government is making business impossible to remain private using our money at his will. The president graduated from Harvard which is understandable he wouldn't know what "fairness" is by it's true definition. His fairness only comes with him included which is so degrading to the qualities of humanity. Please impeach with all reasonable intent.
      Obama: "Our businesses? created 4.3 million jobs?" what's the name of "our" businesses? and WHAT JOBS!! How come he's the only one who knows this if they're "OUR" BUSINESSES? what deceitful ugliness…

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