Sunday, June 24, 2012

For The Second Time

Video: Green-tech stimulus recipient went broke … a second time « Hot Air: "This isn’t a recent case, nor the worst we’ve seen from the Obama administration’s green-tech stimulus bubble.  However, it may be one of the most instructive about how governments don’t pick winners and losers in markets, but just losers.  Genesis Poly of Mankato, Minnesota received subsidies from almost every level of government — city, state, and federal — to open its recycling center that transformed agricultural plastic waste into pellets used to create plastic goods.  Both the city and state spent hundreds of thousands of dollars each, part of which got backstopped by $500,000 in Obama stimulus money.  Meanwhile the federal Department of Agriculture guaranteed 70% of a $7.44 million loan to Genesis Poly issued in the fall of 2009.

By the spring of 2010, however, Genesis Poly had closed its doors, swallowed by bankruptcy.  For the second time."