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> medallions have generally been considered a great investment; I'd put a citation needed on that. There's nothing that keep a city from doubling the number o
by 908B64B197 6y ago
> medallions have generally been considered a great investment;
I'd put a citation needed on that.
There's nothing that keep a city from doubling the number of medallions available, other than some shady lobbying groups. There's a reason most banks shy away from these assets (and those who touch is consider them extremely volatile assets).
- SilasX 6y agoMaybe they shy away now, but I remember reading that banks used to view them as valid collateral for loans. From a 2019 NYT article (open a new browser container): >They said some drivers were happy to use climbing medallion values as collateral to take out cash, and that those who sold their medallions at the height of the market made money. >The lenders said they believed medallion values would keep increasing, as they almost always had. No one, they said, could have predicted Uber and Lyft would emerge to undercut the business. https://www.nytimes.com/2019/05/19/nyregion/nyc-taxis-medallions-suicides.html https://www.nytimes.com/2019/05/19/nyregion/nyc-taxis-medall...
- 908B64B197 6y agoSome banks did. But I seriously doubt they treated them like real estate when pricing the risk on them.