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Then eventually they'll just go out of business. That's how it works. It won't matter what you think the medallion is worth if market prices determine its worth

by muninn_ 10y ago

Then eventually they'll just go out of business. That's how it works. It won't matter what you think the medallion is worth if market prices determine its worth something else.

nine_k 10y ago
Considering Uber's financials, it's a good question who risks to get out of business faster.
- mirimir 10y ago
  So the eventual result might be huge gains for new medallion owners ;)
- muninn_ 10y ago
  This is true. Although, Uber won't be the last taxi company.
maverick_iceman 10y ago
To put it another way, if you think medallions are worth X but their market price is only Y (Y < X) then you should buy them for Y+1. If markets have significantly discounted their true price you'll make a windfall.
- fennecfoxen 10y ago
  Only if Y+1 is likely to turn into X faster than Y+1 earns a normal economic rate of return plus a premium for the added risk. Opportunity cost, the time value of money, and the price of dealing with risk conspire to make a lot of schemes that look good on paper not really worth it.