Venture Capital dries up as municipal bonds make “new-money” more susceptible to the credit crisis
February 24, 2008 – 11:59 pm
I already warned you about this problem in Decemeber.
Before you can understand what I am talking about, let us look at Mark Cuban. Why am I picking on him? Well, Mark Cuban is a smart, intelligent business guy. He started a company based on someone else’s idea and cashed out quickly. I didn’t say he was a geek. I said he was smart. Hold on to that thought.
Then, the dot-com collapse arrived. He looked doubly smart. Everyone else thought they could ride their mule to untold wealth. Well, all of their mules died. 
Mark Cuban shot his mule early and sold it for glue.
What’s my point?
Exit strategy. Everyone who executes their exit strategy before March 1 of this year is OK.
The rest of you? Find bidders quickly because the venture capitals firms cannot go to the private equity firms or banks for bailouts. Their industry is filled with risk! As municipal bonds become JUNK, those firms may not be able to make those tax-free investments liquid. No cash on hand?
No deposit. No return.
Then you tell me, “Oh, I’ll just use my American Express card for quick purchases” …
Then I say, “bwahahahahahahaahahhah!” …
“sure, if the account is still open after March 31″
