Politics is supposed to be the second oldest profession. I have come to realize that it bears a very close resemblance to the first.

- Ronald Reagan

Government by the Rich, for the Rich

Forget the good ol' days when if you needed money for your business you had to sell people on the idea and get financing. But that is such hard work, and then you would give up some of your equity, which means you would have to share in the upside. How about if you keep your millions and let the government give you a loan:

Tesla has spent $50 million developing the Model S and needs $250 million to $300 million more, he said. Once Tesla finds a site and gets the money, it will take 24 to 30 months to begin production, he said.

Tesla has raised $186 million from investors, $55 million of it from Mr. Musk, who made his fortune when PayPal, which he helped found, was sold to eBay. Other investors include Google’s billionaire co-founders, Larry Page and Sergey Brin, and Draper Fisher Jurvetson, the venture capital firm.

Mr. Musk has said that he underestimated the money, time and effort needed to build a car company.

Tesla hopes to receive one of two government loans it is seeking. One, a $250 million loan, would come from money Congress authorized in 2005 for clean energy projects. The first loan guarantee under the program was made to solar company Solyndra last week.

The second loan Tesla is seeking, $450 million, would come from $25 billion Congress authorized in 2007 for electric vehicle technologies.

Isn't that nice of the government to loan a company that has raised $186 million a couple of "loans" for $700 million? Don't underestimate the reward for being a "good (D)emocrat".

This is sickening, but no one really seems to care. Thank god government will go bankrupt...it is the only way we are going to stop this crony-capitalism. (Yeah, Obama is sooooo different than Bush...)

posted at 23:37:14 on 03/26/09 by clearpolitics - Category: Economics - [Permalink]

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