SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Tenchusatsu who wrote (717324)5/23/2013 3:06:14 PM
From: i-node  Read Replies (1) of 1584760
 
>> Great car, but not something that the government should be subsidizing.

I agree, but the liberal blogs are burning it up today, claiming Tesla subsidy to be a "success".

Of course, what they're not mentioning is that the loans weren't repaid out of profits, but from other debt & equity investors' money -- which is the way it should have been in the first place. Why would a company bother with such financing if the government were willing to do it?

And they're not talking about the fact that Tesla is very likely to come back asking for more later on, and when they do, they'll already be a half billion back in debt.

If you think about it, the approach totally makes sense. Treat the federal government like a letter of credit. You repay the letter out of borrowings, but still have it available when it is needed.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News