Filed under: Capitalism, Democrat Corruption, Economy, Politics, Statism, Taxes | Tags: Fisker Automotive, Hendrik Fisker, Obama's Play Money
Fisker Automotive has furloughed its U.S. workers. Now they have hired a law firm for a potential bankruptcy filing. Fisker has not produced a car in about eight months and is losing the interest of two prospective China-based buyers.
Fisker has raised $1.2 billion in equity, and has also had about $336 million of its $529 million line of credit with the federal government frozen because of its failure to meet certain production mandates. A payment on the government loan is due this month.
In March, co-founder Henrik Fisker resigned as executive chairman of the company. Mr. Fisker and Fisker CEO Tony Posawatz were believed to have disagreed over whether the company could feasibly grow with its current cash situation.
Another government effort to pick winners and losers appears to bite the dust. You can see why those with all sorts of government money to spread around might fall for the sexy lines of this car, but one would think the $100,000+ price for the car would cause some hesitation. I thought we looked upon the 1% who could write a check for this car with some disfavor— so why is it the government’s business to provide them with toys?
So The Karma and Fisker Automotive may join Solyndra and the long, long line of green failures — inspired by the need to “reduce our dependence on foreign oil” — a need eliminated by our own plentiful natural resources, if Obama would just stop blocking our access. And they were supposed to save the planet from global warming, but the planet isn’t warming and hasn’t been for nearly 20 years.
The free market does a much better job of picking winners and losers. Hard-nosed investors who are putting up their own money do real investigation and analysis before they invest a single cent, and in spite of their expertise they have some failures. I’m sure investing in a new start-up is exciting. I bet Obama even got to drive one. But it’s not his own play money that Obama is investing. And it is not the government’s job to decide what goods our economy is going to produce.
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