Saw this today. Fact checkers what say you? Which side of the board is more right?
Without being familiar with the particulars on each company and the details surrounding them it would be hard to say, It would take hours of reading and research on the companies on that list and circumstances surrounding each.
It's really a loaded question because one thing that easily jumps out to me is the companies on the blue side manufacture or develop a technology or resource that would probably be considered to be in its early stages and would be a higher risk, but usually innovative tech is boom or bust, but you have to make a leap of faith or nothing ground breaking would be developed. Now take a look at the red side all of the companies provide an established and far less complicated service, fast food, pizza, movies, sporting equipment, radio, movie theaters etc... so it would really be an apples to oranges comparison.
I just picked one company on the blue side of the board and looked up some facts regarding it's failure but it's often easier to just throw out statements because the most people are not going to spend the time it would take to look deep into it.
Quick notes in one of the articles I read:
Jan. 26 (Bloomberg) -- Ener1 Inc., the owner of a company that received a $118 million U.S. Energy Department grant to make electric-car batteries, filed for bankruptcy protection after defaulting on bond debt amid heavy competition from Asia.
The company listed assets of $73.9 million and debt of $90.5 million as of Dec. 31 in Chapter 11 papers filed today in U.S. Bankruptcy Court in Manhattan. Ener1 has been affected by competing battery developers in China and South Korea, “which generally have a lower cost manufacturing base” and lower labor and raw material costs, interim Chief Executive Officer Alex Sorokin said in the petition.
Ener1, based in New York, makes lithium-ion batteries for plug-in electric cars, which were scrutinized by federal auto- safety officials after a General Motors Co. Chevrolet Volt caught fire, people familiar with the probe said in November. A two-month federal safety investigation cleared the Volt of danger, and GM is beginning a marketing effort to tout the car as safe and innovative.
Under President Barack Obama’s economic stimulus package, the Energy Department awarded grants in an attempt to create a U.S. electric-car industry. Ener1’s EnerDel unit, based in Indianapolis, was the grant recipient and has received about $55 million of its grant so far.
“While it’s unfortunate that Ener1, the parent company, has entered a restructuring process,” the investment of “private capital demonstrates that the technology has merit,” Jen Stutsman, a spokeswoman for the Energy Department, said in an e-mail. “The restructuring is not expected to impact EnerDel’s operations and the company has made clear that they do not expect to reduce employment at the site.”
Ener1’s grant application received bipartisan support from Indiana lawmakers, and the company got a $6.5 million Energy Department advanced-battery grant and a $4 million Defense Department research and development contract under the George W. Bush administration.
Ener1’s bankruptcy follows the failure of at least two U.S. government-backed renewable energy companies. Solar panel maker Solyndra LLC and energy storage company Beacon Power Corp. filed for bankruptcy after receiving government loan guarantees.