Tom Friedman nails it in the Op-Ed piece “Start Up The Risk-Takers,” so says NetGain. He underscores one of the most important tenets of investing: “Don’t throw (send) good money after bad.” NetGain has seen the scenario all too many times when income property investors throw more money into properties with bad locations, irreparable structural issues, impossible legislation, and other problems that can only result in a negative return on investment. Chapter 11 was created for companies exactly like America’s automobile companies. When the business model no longer works, Chapter 11 provides the insulation, guidelines, and supervision necessary to keep the company alive while a new business model is designed and implemented.

Reading the news that General Motors and Chrysler are now lining up for another $20 billion or so in government aid — on top of the billions they’ve already received or requested — leaves me with the sick feeling that we are subsidizing the losers and for only one reason: because they claim that their funerals would cost more than keeping them on life support. Sorry, friends, but this is not the American way. Bailing out the losers is not how we got rich as a country, and it is not how we’ll get out of this crisis.

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Start Up the Risk-Takers