Democrat Wants To Create Government-Owned “Green Bank” To Give Loans To “Green” Companies
Extra-special loans that couldn’t possibly be given by the private sector. Because a lot of banks in the private sector (excluding those currently getting bailed out by the feds) usually don’t make loans to companies providing goods/services for which a) there is no market and that are b) not competitive with existing goods/services already on the market.
Most banks won’t accept a business model that boils down to “we exist to eat up government subsidies.”
U.S. Congressman Chris Van Hollen (D-MD) this week introduced the Green Bank Act of 2009. If passed, the legislation would create the Green Bank as an independent, tax-exempt, wholly owned corporation of the United States. The Bank’s mandate would be to provide a range of financing support to qualified renewable energy and energy efficiency projects within the territorial United States.
The Green Bank Act of 2009 would provide the Green Bank with an initial capitalization of US $10 billion through the issuance of Green Bonds by the U.S. Department of Treasury, with a maximum authorized limit of $50 billion in Green Bonds outstanding at any one time.
Seems to me that the first test of a “green” business or initiative should be whether or not said business or initiative is economically sustainable. And if private banks or investors aren’t willing to put up the money to back the business, then it’s probably not a very good idea.
Funding research, of course, is another thing entirely. But if the private credit/investment markets won’t touch a business model, why should the tax payers have to foot the bill for it? Other than because that would be terribly convenient for the Big Green lobbyists and their bought-off buddies in Congress.
This sounds like just another way to bilk the taxpayers.
