The Washington Post reports:
House Democrats on Wednesday called for Congress to expand its investigation into federal loan programs to include a Bush-era loan to the bankrupt broadband Internet firm Open Range.
Open Range went bankrupt earlier this month after receiving the federal government’s biggest broadband loan totaling $267 million. Its collapse has put in jeopardy $74 million in money doled out to the firm. . .
“Your reaction to the Open Range bankruptcy could not be more different than your reaction to the Solyndra bankruptcy,” the lawmakers said in their letter to Energy and Commerce Committee chairman Fred Upton (R-Mich.).
It Democrats think this will counter the Solyndra scandal, just because the loan was made during the Bush administration, they clearly don’t understand the problem. To wit:
- It is not alleged that Open Range exploited personal/political contacts within the Bush administration to get the loan, or that the loan was revived after being shelved under the previous administration, or that the loan was issued in violation of procedure, or that its renegotiation was contrary to law, which are just a few of the many aspects of the Solyndra affair that make it a scandal and not just a bad decision.
- The conservative/libertarian argument that the government should not be trying to pick winners and losers (and is incapable of doing so) is not limited to Democratic administrations. We’re not happy that the Bush administration was in that business either. The Open Range bankruptcy simply underscores that point.