It wasn't government mismanagement that brought Solyndra to bankruptcy; it was soaring silicon prices
The Los Angeles Times presents more details on the Solyndra bankruptcy without resolving the question. If this was a politically-linked scam, why were so many people with no ties to the Democrats or the green movement so keen on it at first?
It was market forces -- soaring prices for high-quality silicon -- that brought hundreds of millions of dollars in private investments before federal loan guarantees kicked in:
"They were considered very exciting," said Shayle Kann, managing director of consulting firm GTM Research's solar practice. "They had the potential to substantially reduce solar costs at the time, and they had attracted an enormous amount of private investment."
One investor, British billionaire Richard Branson's Virgin Green Fund, bragged that it had selected only Solyndra from a pool of 117 solar companies seeking backing. Other investors included billionaire Oklahoma oil baron George Kaiser, and a fund that manages the money of the family behind Wal-Mart Stores Inc. Wall Street heavyweight Goldman Sachs Group Inc. was its lead investment banker.
"Very high-profile money was all over that company," said Bailey, the investment banker. "Nobody else had anything as strikingly different as Solyndra."
When the company emerged from what it called "stealth mode" in October 2008, it had already raised $600 million and was the toast of Silicon Valley.
Seeing Solyndra as partisan corruption overlooks the breadth of enthusiasm: "Even as the company was losing millions, the Wall Street Journal ranked it the top clean-tech company in the country." And it was the Energy Department under George W. Bush that promoted the loan guarantee program, as David Milbank reminds us in the Washington Post, and helped the Solyndra application along.
The crash of silicon prices and aggressive pricing by Chinese competitors wrecked the original business plan. Was there fraud? Invocation of the Fifth Amendment by company executives is no admission of guilt but suggests at best that the facts will be at least embarrassing.
Commodity cycles have long been an underestimated peril of technology investments. I remember a college acquaintance in Chicago, an architect who in the early 1970s had a promising idea for a structure for pigs as a more humane and cleaner alternative for freedlots. Then came the 1970s oil embargo and fuel costs wrecked the business plan -- to my knowledge, before a first round of investment. But what if he had proposed and funded his innovation a few years earlier?
Perhaps the most notorious case of timing involved an Austrian-born hedge fund manager, Michael Berger, who pleaded guilty to securities fraud in 2002, then fled to Austria and has avoided extradition under Austrian law. Berger, the subject of a riveting documentary, actually was right about the dot-com bubble when he started Manhattan Investment Fund, Ltd. in 1996. If he had been able to hold out for a few months longer, he might be a billionaire hailed as a Wall Street prophet rather than sought as a fugitive.
I've already discussed the messiness of fundamental innovation here. Solyndra is a reminder of another dimension of risk. The same volatile commodities markets that help create technological opportunities can also destroy them, whether prices soar or crash or just fluctuate wildly. Even a sound basic idea can fall into a temporary trap. Whatever the verdict on Solyndra, it may, like other failures, have a lot to teach us.
Edward Tenner is a historian of technology and culture, and an affiliate of the Center for Arts and Cultural Policy at Princeton's Woodrow Wilson School. He was a founding advisor of Smithsonian's Lemelson Center.
New research confirms what they say about nice guys.
Smile at the customer. Bake cookies for your colleagues. Sing your subordinates’ praises. Share credit. Listen. Empathize. Don’t drive the last dollar out of a deal. Leave the last doughnut for someone else.
Sneer at the customer. Keep your colleagues on edge. Claim credit. Speak first. Put your feet on the table. Withhold approval. Instill fear. Interrupt. Ask for more. And by all means, take that last doughnut. You deserve it.
Follow one of those paths, the success literature tells us, and you’ll go far. Follow the other, and you’ll die powerless and broke. The only question is, which is which?
Of all the issues that preoccupy the modern mind—Nature or nurture? Is there life in outer space? Why can’t America field a decent soccer team?—it’s hard to think of one that has attracted so much water-cooler philosophizing yet so little scientific inquiry. Does it pay to be nice? Or is there an advantage to being a jerk?
19 Kids and Counting built its reputation on preaching family values, but the mass-media platforms that made the family famous might also be their undoing.
On Thursday, news broke that Josh Duggar, the oldest son of the Duggar family's 19 children, had, as a teenager, allegedly molested five underage girls. Four of them, allegedly, were his sisters.
The information came to light because, in 2006—two years before 17 Kids and Counting first aired on TLC, and thus two years before the Duggars became reality-TV celebrities—the family recorded an appearance on TheOprah Winfrey Show. Before the taping, an anonymous source sent an email to Harpo warning the production company Josh’s alleged molestation. Harpo forwarded the email to authorities, triggering a police investigation (the Oprah appearance never aired). The news was reported this week by In Touch Weekly—after the magazine filed a Freedom of Information Act request to see the police report on the case—and then confirmed by the Duggars in a statement posted on Facebook.
The mock metropolis is meant to have everything but people who live there.
Grigory Potemkin, the 18th-century war hero and nobleman, was also Catherine the Great’s lover and military advisor. According to ubiquitous legend, Potemkin fabricated villages along the banks of the Dnieper River in a bid to impress her. Historians aren’t convinced that Potemkin really constructed entire fake villages, their facades illuminated by enormous bonfires—but the concept may not be so far-fetched.
These days, when people talk about a Potemkin village, they’re usually referring to a ruse to make something appear better than it actually is. It’s a useful metaphor, but also a reflection of people’s fascination with fake cities and questions about the line between authenticity and artificiality in man-made environments.
The Islamic State is no mere collection of psychopaths. It is a religious group with carefully considered beliefs, among them that it is a key agent of the coming apocalypse. Here’s what that means for its strategy—and for how to stop it.
What is the Islamic State?
Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.
Advocates say that a guaranteed basic income can lead to more creative, fulfilling work. The question is how to fund it.
Scott Santens has been thinking a lot about fish lately. Specifically, he’s been reflecting on the aphorism, “If you give a man a fish, he eats for a day. If you teach a man to fish, he eats for life.” What Santens wants to know is this: “If you build a robot to fish, do all men starve, or do all men eat?”
Santens is 37 years old, and he’s a leader in the basic income movement—a worldwide network of thousands of advocates (26,000 on Reddit alone) who believe that governments should provide every citizen with a monthly stipend big enough to cover life’s basic necessities. The idea of a basic income has been around for decades, and it once drew support from leaders as different as Martin Luther King Jr. and Richard Nixon. But rather than waiting for governments to act, Santens has started crowdfunding his own basic income of $1,000 per month. He’s nearly halfway to his his goal.
In an interview, the U.S. president ties his legacy to a pact with Tehran, argues ISIS is not winning, warns Saudi Arabia not to pursue a nuclear-weapons program, and anguishes about Israel.
On Tuesday afternoon, as President Obama was bringing an occasionally contentious but often illuminating hour-long conversation about the Middle East to an end, I brought up a persistent worry. “A majority of American Jews want to support the Iran deal,” I said, “but a lot of people are anxiety-ridden about this, as am I.” Like many Jews—and also, by the way, many non-Jews—I believe that it is prudent to keep nuclear weapons out of the hands of anti-Semitic regimes. Obama, who earlier in the discussion had explicitly labeled the supreme leader of Iran, Ayatollah Ali Khamenei, an anti-Semite, responded with an argument I had not heard him make before.
“Look, 20 years from now, I’m still going to be around, God willing. If Iran has a nuclear weapon, it’s my name on this,” he said, referring to the apparently almost-finished nuclear agreement between Iran and a group of world powers led by the United States. “I think it’s fair to say that in addition to our profound national-security interests, I have a personal interest in locking this down.”
A majority of Senators wanted to stop a spy program that they never approved. They failed despite having more votes. And it only gets more bizarre from there.
In the wee hours of Saturday morning, the U.S. Senate played host to a moment that took mass surveillance on the phone records of Americans from outrage to farce.
The NSA’s phone dragnet had already been declared illegal.
Earlier this month, a federal appeals court ruled that while the surveillance agency has long claimed to be acting in accordance with Section 215 of the Patriot Act, the text of that law in fact authorizes no such program. The Obama Administration has been executing a policy that the legislature never passed into being.
But the law that doesn’t even authorize the program is set to expire at the end of the month. And so the court reasoned that Congress could let it expire or vote to change it. For this reason, the court declined to issue an order shutting the program down.
Why it’s so hard to defeat an enemy that won’t fight you, and what this means for U.S. strategy on everything from the Islamic State to China
The Scythians were nomadic horsemen who dominated a vast realm of the Pontic steppe north of the Black Sea, in present-day Ukraine and southern Russia, from the seventh century to the third century b.c. Unlike other ancient peoples who left not a trace, the Scythians continued to haunt and terrify long after they were gone. Herodotus recorded that they “ravaged the whole of Asia. They not only took tribute from each people, but also made raids and pillaged everything these peoples had.” Napoleon, on witnessing the Russians’ willingness to burn down their own capital rather than hand it over to his army, reputedly said: “They are Scythians!”
The more chilling moral for modern audiences involves not the Scythians’ cruelty, but rather their tactics against the invading Persian army of Darius, early in the sixth century b.c. As Darius’s infantry marched east near the Sea of Azov, hoping to meet the Scythian war bands in a decisive battle, the Scythians kept withdrawing into the immense reaches of their territory. Darius was perplexed, and sent the Scythian king, Idanthyrsus, a challenge: If you think yourself stronger, stand and fight; if not, submit.
A major innovator in 1999’s money-transfer landscape was PayPal, which started its money transfer service that year (Back then, websites looked like this.) Currently, PayPal reports that it has 165 million users around the world, and that it moved $46 billion in 2014. PayPal, once a small arm of its parent company, eBay, is soon going to be spun off, after which it plans to go public on Nasdaq.