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GM, like most other American car manufacturers, is dead in the water. I don’t understand why anyone even consider giving any more money to this financial blackhole. Though I frown upon government bailout of the financial systems due to bad loan, I do not understand why anyone would even consider helping this ailing industry.

Mark Cuban said this the best: if I buy a new car and drive it off the lot (when my new car is worth a couple of grand less), should the gov’t bail me out too? 

This is ridiculous.

We need to let GM and Ford go bankrupt, release all of its pension liabilities, and de-unionize. American cars are great. The American labor force that produces them, not so great. This is the 21st century people. We can’t make progress with 20th century notion of pension, job security, etc. In times of globalization, we need to be quick + efficient, just like China. Don’t believe me?  Just ask a 16 year old kid in China or India who’s doing a job that a 40 year old union member American employee would do… he would do it for 1/10th the wage and no benefit whatsoever (forget pension.. he doesn’t even get coffee breaks!)

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For entrepreneurs (especially those high tech dudes in Silicon Valley), this blog post by Mark Cuban is a must read:

There are only two reasonable sources of capital for startup entrepreneurs, your own pocket and your customers pockets. I personally would never even take money from a family member. Could you imagine the eternal grief and guilt from your mom, dad, uncle or aunt because you blew your nephews college money or the money for grandmas last vacation… I cant.

You shouldn’t have to take money from anyone. Businesses don’t have to start big. The best ones start small enough to suit the circumstances of their founders. I started MicroSolutions by getting an advance from my first customer of $500. The business didn’t grow quickly in the first couple years. We didn’t grow past 4 people in the first couple years, and we all worked dirt cheap.

So what’s wrong with that? It’s OK to start slow. It’s ok to grow slow. As much as you want to think that all things would change if you only had more cash available, they probably won’t.

The reality is that for most businesses, they don’t need more cash, they need more brains.

Thank you Mark.

I see so many idiot entrepreneurs who think that raising money is going to make or break a business. *sigh* If I got paid every time for meeting an idiot entrepreneur-wanna-be who says, “i need a good business plan so I can raise money”, i’d be drinking cristal and pimpin’ hos with 50 cent and Eminem in Hollywood.

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