Tesla, the former manufacturer of a $100,000 battery-powered sports car, announces an IPO. And why not? They are stopping production of their roadster until at least 2013, but we taxpayers have just given them $435 million to build a new factory. Investors will flock to buy into this no-lose project.
Command economies are fun – the government shifts capital as politics and political whims dictate, runs roughshod over individual rights and everything looks rosy for years, or even decades. Liberals love it – witness their praise of Russia and China. But ultimately, a command economy cannot sustain itself – Cuba, Venezuela, Russia and, coming soon, China. Liberals will discount these failures and blame other factors for them (Bush/Cheney is still good) but there you have it.
Anyway, there’s your money, gone to prop up a guaranteed a money-loser like Tesla. I’d go ahead and buy the stock: ride it up and then get the hell out. The penny stock folks call this “pump and dump” – our current regime calls it “investing in the future”. Whatever.