Friday, June 17, 2011

"For as long as the solar industry is a function of government favoritism—and not market forces—it will remain one unfavorable vote away from bankruptcy."

The Solar Bubble’s Growth Only Worsens the Inevitable Burst
The steel industry exists because people want to buy steel, while the solar industry exists only by the grace of favorable politics. That is, without taxpayer giveaways and Soviet-style production quotas, there would be no solar industry in America. The same is not true for the steel sector.
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For as long as the solar industry is a function of government favoritism—and not market forces—it will remain one unfavorable vote away from bankruptcy. It is a bubble, and a precarious one at that. As such, the industry’s growth is no cause for cheer. It only increases the harm that will be wrought when the taxpayer money spigot is turned off, as eventually must occur.

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