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To save you looking it up, prices peaked in 2011 @ $1 million for a medallion. Interestingly corporate medallions are now pushing toward $1 million ($280k in 2

To save you looking it up, prices peaked in 2011 @ $1 million for a medallion. Interestingly corporate medallions are now pushing toward $1 million ($280k in 2004). And if the 13,347 medallions were once valued at $1mil and now $600k that's a $5.3 billion paper loss. Ouch https://en.wikipedia.org/wiki/Taxicabs_of_New_York_City#Medallions https://en.wikipedia.org/wiki/Taxicabs_of_New_York_City#Meda...

Retric 11y ago
Medallions are a productive asset, so 5.3 billion is somewhat disingenuous.
- deleted 11y ago
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- mathgeek 11y ago
  Wouldn't the current and future production be factored into the price, though? I'd have to guess that 5.3 billion is a low estimate for actual losses if you owned one of these in 2011 and still hold it.
  - Retric 11y ago
    Your double counting the returns as future cash flows are already factored into the sale price. Suppose you had a bond worth 2$ that paid out 1$ and is now worth 1$. That's not a paper loss of 1$. PS: At the last auction, in 2008, the opening bid was $189,000, and medallions sold for as little as $226,000. http://www.thenewyorkworld.com/2014/01/20/taxi-medallions/ http://www.thenewyorkworld.com/2014/01/20/taxi-medallions/ In total, TLC will be auctioning off 2,000 new medallions, 40 percent of them to drivers. (January 20, 2014) that's a significant part of the price drop.
    - Retric 11y ago
      PPS: Peaks 130$ per sift * 2 shifts per day call it 75 to 100k / year. 4 * 75 = 300k, 4 * 100 = 400k. So, yes they lost value, but far less than you might think.
    - mathgeek 11y ago
      I was speaking more to the loss of future earnings because of the lower demand for traditional taxis. Any earnings you do get out of ownership are already calculated into the value of the medallion, so not only are you losing the difference in value but also the earnings that it enable you to receive (but you'll no longer get even though you spent the original price expecting them).

Retric 11y ago

Medallions are a productive asset, so 5.3 billion is somewhat disingenuous.

deleted 11y ago
[deleted]
mathgeek 11y ago
Wouldn't the current and future production be factored into the price, though? I'd have to guess that 5.3 billion is a low estimate for actual losses if you owned one of these in 2011 and still hold it.
- Retric 11y ago
  Your double counting the returns as future cash flows are already factored into the sale price. Suppose you had a bond worth 2$ that paid out 1$ and is now worth 1$. That's not a paper loss of 1$. PS: At the last auction, in 2008, the opening bid was $189,000, and medallions sold for as little as $226,000. http://www.thenewyorkworld.com/2014/01/20/taxi-medallions/ http://www.thenewyorkworld.com/2014/01/20/taxi-medallions/ In total, TLC will be auctioning off 2,000 new medallions, 40 percent of them to drivers. (January 20, 2014) that's a significant part of the price drop.
  - Retric 11y ago
    PPS: Peaks 130$ per sift * 2 shifts per day call it 75 to 100k / year. 4 * 75 = 300k, 4 * 100 = 400k. So, yes they lost value, but far less than you might think.
  - mathgeek 11y ago
    I was speaking more to the loss of future earnings because of the lower demand for traditional taxis. Any earnings you do get out of ownership are already calculated into the value of the medallion, so not only are you losing the difference in value but also the earnings that it enable you to receive (but you'll no longer get even though you spent the original price expecting them).