1:25:10 Either you can go into a dire situation like the hunger winter of 1945 to 1949 or You can let us take care of all of your taxation and all of your financial troubles. That is all I think that's where we're headed Yeah, you need a little more echo in that well I did you know you I did the reverb uh um? You can't hear it through Skype But it was there it sounded really kind of ominous So the Solyndra drama continues here in the United States of Gitmo Nations. And this is a company, the solar power company that received a little over half-a-billion dollars in government loans
1:25:55 And of course, unfortunately it turns out that some executives from the company also supported President Obama in his presidential run. So it all looks kind of shady. Yes! It does... The Republicans are of course grasping onto this but they did actually find something there two representatives Griffin and Murphy who I'm going to play short clips from And they are a grilling the the guy he has a weird title his name is silver Oh Silver and He has the ominous title of being charged of government loans not a good place to be right now so Griffin comes out, and he actually finds that they've made a law The Department of Energy guys from Department energy. They've made a law that basically says
1:26:46 Well, he'll explain it exactly. I'm concerned about this is situation but i would point out in paragraphs one and two it references that no guarantee shall be made unless which gives some flexibility but in paragraph three of section 1702 it says the obligation shall be subject to condition that the obligation is not subordinate to other financing Let's just explain subordinate for a moment, for those of you who don't know. If you have a company and you take financing like either it is for shares or it is straight up loan, subordinate means that if more money comes in that loan has to be paid back first and I do not think there is any investment ever done that I can imagine John, you might correct me on this
1:27:36 Where someone gives a loan and says, but you know what? If you get more money if you borrow more money from somebody. You can pay them back first I don't think that happens Well, that would happen with specialized vehicles where you have like you issue stock or bonds certain kinds of convertible debentures or something that are so dissimilar that you could find somebody in a preferred situation. So yeah it could but this doesn't sound like that. Let's put it this way if you and I were running the government and in charge of the slaves tax money would we put our slaves' tax money in danger like that?
1:28:16 Well, this is a current administration might yeah. Have you read the memorandum of law on this? I have not read the full memorandum No But I've but I've been briefed like would it shock you to know that if you read it and you pay attention To what's being said and I have it right here be happy to give you a copy with my notes on it If you want them It looks like it's a Law School project where you're told to come up with an answer Here's the question give me the right answer defend it the best you can that's what it looks like because under this analysis What it says is that if we close the loan in the morning and at lunch somebody has an epiphany, and says you know what I think that we should see if we can get some more money from somebody else. And were going to subordinate that money. We're not going to follow this paragraph because there's no line. In fact someone raised that issue. The memorandum points out somebody raised the issue should there be a line between
1:29:10 when the loan is granted and possible default. And they said, no that's not necessary because the law doesn't say that you can change it anytime you want to if the secretary thinks its appropriate Does that make good common sense? As Mr. Green pointed out to you, you don't have to be a lawyer know good common sense. It makes common sense that the Congress of the United States responsible for setting our legislative policy would say that you are not subordinate but under the interpretation if your lawyers they could subordinate after lunch for alone closed in the morning does that make it so that's the that's the general premise and why they're hammering on this guy and as well they should yeah well then this this schmuck silver hi ho silver
1:29:48 He gets hammered because he basically is saying I don't know. I'm not responsible. I didn't do it The dog ate my homework while we talked this staff talked with the company on a regular hour I really want you to stop throwing everybody else under the bus. I hear you throwing all your staff out under the bus. I want to know you're in charge, you've handled loans of this size and now your saying it's everybody else fault but you except your in charge You tell me what you as a person in charge did with half billion dollars tax payers money now saying its all my staffs fault? I didn't know! I can do anything about it. You tell me what your going to tell the taxpayers We are in hole for so much money this country and your dealing with this in very casual cavalier way whose fault is it
1:30:32 Well, sir. First let me say that the 200 odd professionals working in the loan guarantee program are exceptional professionals... And you throw them all under the bus it's a pretty bumpy ride but your'e the driver Mr. Silver! Your'e the driver and now your saying this is restructured and going back to slide that says obligations shall be subject to condition that obligation does not support other financing and now its gets restructured so taxpayers don't get their money back. Restructuring any restructuring congressman is based on a binary decision as to what is the better outcome. A binary decision? This guy should work for Vivek Kundra! Exactly, you'd be talking coal ball next time. I like a binary decision. For recovery, liquidation of sale of assets in a moment in time or a restructuring... Who was it that decided, that made the decision
1:31:19 act passed into law by the federal government was going to not be adhered to. Who made that decision? As I said, it was reviewed by legal counsel for the loan program So you have no responsibility in this either so we're throwing him under the bus too? I'm not a lawyer sir i rely on counsel We're throwing her under the bus too? Did the secretary of energy have anything to do with this decision or is he under the bus too? Not to my knowledge. So no one's responsible This is an incredible organization you work for No one in the federal government is responsible for half a trillion, half a billion dollars of taxpayers money. This is phenomenal! What do you do for a living? Why do... If you don't know what's happening everybody else is to blame. What if we go back and tell our constituents who have to work hard with so many people in this country in poverty, so many people in problems We're saying..if this federal agency is saying
1:32:06 we don't take any responsibility for the else's fault we'd need to be worked at the post of our capabilities congressman to ensure that these projects are as de-risked as possible and but now this has been a picture on the hook for their services pointed out earlier as was pointed out earlier uh... there are always challenges um... investing in innovation and i should point out that congress uh... through the appropriation of two point four billion dollars of credit so when did this company actually get their check It doesn't work like that, Congressman. I tell you the only guy getting thrown under their bus is this guy. Poor schmuck! Are you still there? That guy was so screwed