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Agenda of the day
The Solyndra also rises
About 10 years ago, a solar power company that used a high-profile federal loan guarantee to build a massive Silicon Valley factory with Disney-tune-whistling the robots and space age showers were on the verge of bankruptcy.
The company was called Solyndra, and its meteoric demise became a political headache for then-President Barack Obama and perhaps made some politicians hesitant to spend more government money on green energy. It also marked the end of a brief but unbridled boom in cleantech investment. Fast forward to 2021, and it’s like Solyndra never happened. Public opinion strongly favors government intervention to fight climate change. The new darling of American companies, Tesla, has amassed billions of dollars in government subsidies – including some of the same guarantees that helped Solyndra. And investors are again throwing money at anything in the green region of the color wheel.
Is everything going to explode again? Noah smith argues not, citing the biggest change of the past decade: Green energy costs have dropped dramatically. It means impatient investors won’t have to wait that long for profits, and the government will not have to provide so much scaffolding – although perhaps should; Solyndra was just an exaggerated failure of a successful program. If the pre-Solyndra boom was the clean tech version of the dot-com bubble, then maybe the current hype phase is more mature and enduring, suggests Noah.
Investors can still get burned when so much hot money is flowing. This Nikola truck rolling the descent should still be fresh in everyone’s memories. More recently, accounting issues have rocked the shares of hydrogen fuel cell maker Plug Power and electric vehicle maker Lordstown Engines, Notes Chris bryant. No whistling robot was involved, but such scandals could make investors suspicious once again, at a time when green power really needs all the money it can get.
The Fed will just spin this car if you don’t drop it
There was a Fed meeting yesterday, and that noise you don’t hear is the blissful silence of a market realizing that this central bank doesn’t respond to tantrums. Jay Powell & Co. clarified that no matter how much bond traders raise interest rates, the Fed won’t play until it sees hard evidence of real inflation, writes Brian Chappatta. It was a pleasant surprise for a Stock market braces for Fed to be more hawkish, writes John authers. But it will continue to become more difficult for the Fed to balance its perma-accommodating position against constantly improving economic data, writes Mohamed El-Erian. All a fiscal stimulus about to hit the economy will only make it harder, writes Bloomberg Editorial Board. Of course, the Fed has been asking for tax help for a long time. Is this an example of being careful with what you want?
Stories of vaccine failure
Israel, the UK, and the US are widely regarded as the world leaders when it comes to getting Covid vaccinated in people’s arms. Less well-known is the UAE, which only follows Israel in terms of vaccinations per capita. Even less well known, and perhaps more surprising, is the third best country in the world, which you can see if you squint or click on the following JPG:
That’s right, it’s Chile. It’s a shock because the rest of Latin America has been an absolute disaster in vaccine management, writes Mac Margolis. Poor leadership, hesitation about vaccines, nationalism – you name a vaccination barrier, and Latin America has understood that, and not just Brazil. Among regional leaders, only Chilean President Sebastian Pinera had the means to align vaccine sources around the world. The reward for his country will not only be a healthy population, but also a stronger economy.
Europe is not on this graph, but does not do much better than the lagging Brazil. As you stepped into this pandemic, you might have expected the continent to be a world leader in vaccinating people. But Lionel laurent writes his strange mixture of technocracy and populism are exactly the wrong cocktail for this company, causing too much indecision and too few shots.
If you have young children, there’s a good chance they’re playing Roblox right now, which helps your sanity and Roblox’s bottom line. But we all have to consider how the business the business model runs the risk of creating a new generation of screen junkies, warns David fickling.
At least European countries can borrow money at low rates, Marcus Ashworth Notes, including even Greece.
Amazon is one of the most profitable companies in the world, making Jeff Bezos one of the richest men in the world, while U.S. taxpayers help cover basic living expenses of several of its employees. – Nir Kaissar and Tim o’brien
Roaring Kitty and Warren Buffett have more in common than you might think. – Tae Kim
Goldman analysts are angry for working too hard. – Matt Levine
Two bailouts in 12 years clearly show that we need to reform monetary funds. – Timothy massad
Biden needs his own culture war, like FDR and Ronald Reagan won. – Pankaj mishra
Biden must do Asian Americans are neither foreigners nor enemies. – Noah smith
United States achieved Biden’s vaccination goal six weeks earlier.
Goldman is looking for volunteers to move to West Palm Beach.
Vladimir Putin deploys “I know you are, but what am I? »Defense against Biden.
Just look at the havoc you make when you walk looking at your phone. (h / t Ellen kominers)
Primordial lightning may have triggered life on Earth.
Maybe Oumuamua was not a cigar but a cookie.
Art in those $ 69 million Beeple NFT is almost incomprehensible not OK. (h / t Scott kominers for the last three kickers)
Notes: Please send $ 69 million and your complaints to Mark Gongloff at [email protected]
This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.
To contact the editor responsible for this story:
Brooke sample at [email protected]