T Nation

Greentech: Next Publicly-Funded Financial Disaster


I was reading some news about one of the venture capital firms that funded my last employer:

This guy Vinod Khosla and his band of buccaneers (esp. Pierre LaMond) just raised money through a hefty California retirement pension system (CALPers) investment:

I then wondered, "How much other public money is going into Greentech and will the public recoup their money?" I think the answer to the first question is "A lot." A lot of the TARP money was designated for green jobs, green tech, etc. You see ads on the job boards for "green" engineering jobs.

I think the answer to the second question is "No." But follow the money: The Feds just passed a "CAp and trade" tax on people emitting carbon because Tom Friedman and the other Beltway fanatics said we needed to. So if all of this Green tech investment money fails to deliver us enough results to recoup their losses (we know it won't b/c it's the government doing the investing), they can just tax the blown money back through "Cap and Trade." It will be yet another example of the collusion of the financial sector and government creating moral hazard, creating another bubble to burst with little to show for it, and then getting off scot-free since they're the ones in power.

Anyways, Khosla Ventures just raised $1 billion in this economy without saying where most of it came from, so it's likely it came from the federal government:

I wonder how much more of this is going on. Hold onto your wallets.


History is going to read the United States as the most incomprehensible bunch of self destructive fools since the dawn of man with all of the exciting and innovative methods we develop for sinking our own nation


Right now, they hold the means of production (the Fed) because people keep buying up our bonds. Whenever these guys screw up, they just whine to the federal government and get a bailout. But I think the Chinese especially are learning what else to do with their money:


Them yellow peoples have done well for themselves. If they try to abuse or manipulate the U.S. we'll go over there and kick some ass.


Their form of development aid might actually work.