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If you pay off a house, all the rent money you collect after that is profit. If you pay off a medallion, all the rent money you collect after is profit. They ar
by Lendal 12y ago
If you pay off a house, all the rent money you collect after that is profit. If you pay off a medallion, all the rent money you collect after is profit. They are exactly the same.
When the banks started finding themselves the new owner of thousands of vacant real estate properties, they failed to manage them because they're a bank not a property management company.
The same thing could happen with medallions. When the banks start finding themselves owning thousands of medallions what makes you think they'll suddenly be interested in running a taxi company? They won't. They'll just let the medallions rot like they did the houses. When a medallion goes unmanaged the taxi it belongs to rots in the garage or gets liquidated. The drivers will go find other work or collect unemployment. There will be fewer taxis on the street. Pretty simple logic.
- seunosewa 12y agoWhy wont the banks sell the medallions instead of letting them rot?
- URSpider94 12y agoThey will, of course. It's highly unlikely that a bank that took possession of a medallion in a foreclosure would let it sit idle (and TFA says as much).
- Dylan16807 12y agoMaybe. But medallions are a lot easier to manage. They are immune to damage. As far as I know it should be possible to rent them out at a below-market rate with no skill, no risk, and little time invested.