Question

WRITE A ONE-PAGE REVIEW OF THE SOLYNDRA COMPANY BANKRUPTCY AND CURRENT EVENTS.

Answer 1

The solar plant manufacturing company Solyndra , filed for bankruptcy . The solar energy business is expected to increase five times manifold. Solyndra bankruptcy costs the economy 1100 plus jobs. The government has set assigned $500 million loan guarantee to Solydra which is very less in comparison to what the other countries are investing in renewable sources of energy, keeping in ming the rapid growth of this sector in the future. Solyndra was supported by the bush Administration.

Government loan guarantee to Solyndra and early warning signs of the company going bankrupt prove that there has been a scandal in this case. It questions the government's role in providing extended support to Solyndra.

By December 2010, Solyndra as out of cash and there was a need for the influx of money to avoid bankruptcy. So, the government restructured the entire loan program which led to an inflow of another $ 75 miliion of tax payers money into the company. This undoubtedly raised concerns on the government's ability to pick winners. Solyndra has become a scandal due to evidence that key Obama officials acted inappropriately and ignored warnings that could have shielded taxpayers.

Solyndra failed because more cheaper solar panels are available and people also hence access to them. Solyndra is an example that market punishes bad business.