In a follow up to the Solyndra case, The House Committee on Oversight and Government Reform took testimony from several high-ranking Fisker Automotive executives. Fisker took $192 million dollars from the Department of Energy and immediately went bankrupt. Republicans are dragging the Obama administration and Democrats across the coals on the Fisker debacle. The republicans hope the failure of the electric auto company will be a beacon of government overspending and make voters return to the Republican ticket in the next election year.
In my opinion, loaning Fisker $192 million dollars was a mistake. Startup auto companies are an extremely volatile financially speaking. In my mind, professional private-equity or venture capital firms should handle the financing of these industries. Now this is not to say the bailout was bad. The support of already existing firms is safe enough to be considered logical while a startup with no prior experience is very illogical.