Federal spending on new enterprises in renewable energy won't help in the short run either. Remember what I mentioned yesterday about solar companies going down the tubes even after getting big bucks from Uncle Sam? That doesn't prevent the industry from dangling a carrot in front of politicians, promising . . . what exactly? Campaign contributions after the next round of government loan guarantees? It's funny how that article mentions First Solar (FSLR) and LDK Solar (LDK) as big potential winners. Their stock prices have been totally hammered this year. LDK, a Chinese company, is suffering as much from overcapacity in solar panel production as American companies like LDK.
China isn't putting all of its eggs in the solar basket. It continues to develop its nuclear energy sector to generate the baseload power that solar can't produce. Let's see the U.S. government's proposed infrastructure bank allow for investment in nuclear energy. It couldn't possibly turn out any worse than Uncle Sam's failed loan guarantees for bankrupt solar producers.
Full disclosure: No positions in FSLR or LDK at this time.