Lack of regulation is the "Death Knell" for medallions, because if anyone can do it without a medallion, why would anyone want a medallion?
In his letter to shareholders, Ackman apologized to his investors for his mistakes over the last year. FNMA and FMCC were not in his list of mistakes!!!!!!!!!!
This "corrupt unnecessary medallion system" was created by NYC. NYC regulates it. NYC financially benefited from it. It is not a monopoly, it is thousands of individual businesses trying to legally follow the rules set up by NYC.
Opposed to UBER Taxis circumventing laws and regulations to under cut price. Any business CAN offer a cheaper (and sometimes better) product if they are not hindered by laws and regulation.
Example: I open a hot dog cart on the street corner. I buy a business license from the State. I buy a permit from NYC. I buy a health permit. I submit to health inspections and make suggested upgrades. After looking at the market of legal Hot dog vendors, I decide to price my Hot Dogs at $5.
What happens to all legal Hot Dog vendors, if say a rash of UBER Dog vendors start popping up on every street corner. They don't bother with licenses, permits, or inspections, so they can afford to sell their UBER Dogs at $3.
Customers get more choices and better prices, so in your eyes it would be fair???
NYC Taxis are required to buy a medallion which were originally sold by NYC(currently costing $700,000-800,000). NYC limited the total number of medallions sold giving them control over the number of taxis operating in their city. NYC Taxis must carry commercial insurance. NYC taxis pay a $0.5 per fare surcharge to NYC.
Uber Taxis give a percentage of each fare to UBER, and so far, do not need a special permit or medallion of any kind to operate in NYC. Uber Taxis believe that they can carry regular (non-commercial) insurance. Uber Taxis pay no extra charges to NYC.
So, in my opinion, UBER Taxis are taking advantage of a void in regulations or regulation enforcement, that gives UBER Taxis a huge advantage in the short term.
Other than bribes and payoffs, I do not see why NYC is so willing to allow unregulated UBER Taxis to take over the market.
This is a Yahoo Message Board, not a court of Law. Last time I checked, opinions could be shared here!!!
Mr. Frater is the chief executive of Berkadia Commercial Mortgage, a joint venture of Berkshire Hathaway and the Leucadia National ...
Renée L. Glover, executive director of the Atlanta Housing Authority
Freddie lost $$$ last quarter, but Fannie Mae made $2 B last Q
Actually, if the Government wants to, it can just declare martial law and take any assets that it wishes. But, I don't think they would risk collapsing the whole economy over this.
Gargos, much better answer than Igurumo, but your answer still has holes.
-In your analogy, the Saudis would not be buying ice from the store (oil at retail) they would be buying ownership in the store (ownership in their competition).
-Saudis have about $600billion in financial reserves, they are not in need of money.
-Saudi's are currently pumping 10.3 mb/d (million barrels per day), this is the highest production ever for Saudi Arabia. They might be able to produce a little more, but even their output has its limits. The world is consuming 96.3 mb/d, and expected to grow 1.2% next year. estimates are that all producers combined are producing an excess of only about 1 mb/d. That's only 1.04% more than the world needs. If Saudis eased back on production by 1mb/d then world production would be quickly passed by world supply. This would be both good and bad for Saudis as it would help them and their competitors.
But, what if they used this downturn to buy large stakes in their competitors and then ease back on production?
Which Government won't allow it? The U.S.? We allow stock to be sold to foreign owners, and we don't control OPECs output. So, I'm asking for a better answer, anyone.
Is ERBB testing alien technology in the desert? Some say yes............See, you can lie about anything if you pose it in a question.
and then cut their production by 10%. As oil would definitely rise, they would see money pouring in from stock gains and oil production.
I was thinking, I might buy a bus and just start picking up people at those bus stop places. At a dollar each, I could probably make $500-600 per day. The city shouldn't mind because I would be providing competition which is only good for everybody!!!
In a pure capitalist system, I can record the new Star Wars movie on to multiple DVDs and sell them for whatever price I can get. Government regulation doesn't stop movie pirating completely, but it slows it down to the point where those that follow the rules and regs, can usually make a profit.
Government always interferes with pure capitalism, and many times for the right reasons.
The problem as I see it, is that UBER (through bribery or other means) is allowed to disregard government rules and regulations, that all other taxi service providers must adhere to. Imagine how profitable a new taxi service start-up could be if they didn't have to buy medallions or share 25% with UBER.