By Bryan Caplan
After defending bankruptcy for the Big Three, Tim Kane pioneers a new way to put your money where your mouth is:
[T]t is not true that customers won’t buy from a bankrupt
company. Happens all the time. So I have been thinking of some way to
put a nail in the “won’t buy cars from a bankrupt company” claim.
Here is my pledge: I will buy a new vehicle from the first American auto company to enter bankruptcy.
I will buy it within six months of the date of entry, on the condition
that it has to be a real bankruptcy, and the company must follow
through with real restructuring. This is not an easy pledge to make,
and my wife may kill me. But nothing could be more valuable for my
country’s economy than for one of these companies to re-organize.
An interesting difference between a blog pledge and a blog bet: For a bet, you need opponents. But Tim’s looking for partners:
Who else will take this pledge? (I think I can get you a discount!) Send an email to email@example.com and I will add your name to the list.
I hate to disappoint Tim, but I’m afraid he’ll have to count me out. Despite my access to a GM-employee discount, the greater reliability of Toyotas is too enticing.