Please offer ideas and improvements to this plan, and share it with others. I don't see Uber just going away and things returning to normal.
Really smart, would be to buy on the market as many shares as possible, then offer settlement. Wipe out all weak hands for cheap.
The Government would be smart to settle for $25 buyout per share. The $40+ billion that they have already made in profit would cover that. Then the Government would control the mortgage giants and make over $20 billion per year.
You are probably right. I did submit this idea to the NYC Mayors web site, but I doubt it will go anywhere from there.
Plan II (Why can't we all get along): NYC issues 2600 new Medallions to itself making the total about 16,000 (giving themselves 20%), all medallions become invalid as permits, but become valid as 1 share in a utility company that issues permits for all taxi, uber, lyft or shuttle drivers.
First year, utility could issue up to 30,000 permits at $20,000 each. Each medallion/share would generate over $35,000, which would cover the cost of their permits plus give them an extra $15,000 in profit.
The price of permits could be adjusted up or down depending on market demand. lifetime Medallion owners would have a profit generating share of this utility company which they could sell at anytime like stock.
NYC's 2600 shares would generate over $90 million first year, with possible increases every year after that.
Fannie and Freddie Shares Still Look Unappealing
Fairholme’s latest legal efforts unlikely to shift case against mortgage giants
By John Carney
Demarco is well aware of all of this, as he was Mel Watts predecessor as head of the FHFA. He was a key player when all of this criminal activity began.
Put Fannie and Freddie Out of Taxpayers’ Misery
Seven years after the crash, why is the American public still on the hook for three out of every four new mortgages?
By EDWARD DEMARCO
Aug. 20, 2015 7:20 p.m. ET
The collapse of the housing finance system played a pivotal role in the 2008 financial crisis and the Great Recession. Seven years later, fundamental problems with the system—especially the roles of Fannie Mae and Freddie Mac—remain unreformed. If today’s presidential candidates want to engage in a policy debate that affects the lives of nearly all Americans, this is it.
Fannie and Freddie purchase mortgages, bundle them into pools, and issue mortgage-backed securities to investors. Securitization allows investors to provide funds for families to buy houses, and those families’ monthly mortgage payments repay investors. If a borrower defaults, Fannie and Freddie guarantee investors repayment of their principal.
Before the crisis, Fannie and Freddie shareholders backed that guarantee. As losses overwhelmed shareholders’ equity in 2008, these “government-sponsored enterprises” were placed into federal conservatorships and taxpayers have since injected $188 billion into the companies to backstop their guarantees. Seven years later the conservatorships remain and the companies’ guarantees exceed the level when the conservatorships started.
Several comprehensive legislative proposals to replace Fannie and Freddie and revisit overall housing policy have been made. But nothing has happened. So taxpayers guarantee repayment to investors on roughly three out of every four new mortgages today.
How is anyone behind Hillary Clinton? Why does anyone see her as a viable alternative? Seriously?
So far, it appears that no city in the US is willing to regulate UBER, so I am just thinking up plans that don't regulate UBER, but do regulate all drivers equally and still return some value for the medallions. If no new plan is implemented and we continue down current path, then UBER will grow unabated and medallion owners will eventually lose all value.
@Big Yank, you seem to have a problem with the hedge funds making money on this deal. The way honest markets work is, if you see an under valued stock and you buy it, if you are right then you make money. Why do you not have a problem with the "Too Big To Fail" banks grab for cash that violated laws, or the Administration's and theTreasuries' grab for cash that might be so corrupt that it "Roils the marketplace".
If the economy was disrupted by outside forces, then that information is all ready out side. If it was disrupted by inside forces, then who will stop insiders from doing it again, if everyone is kept in the dark?
Why give the Government everything it wants when they don't have a legal leg to stand on. All they have is the ability to delay. That is their only negotiating force. (oh, and the ability to waste unlimited amounts of tax payer money). Here is a more realistic compromise.
1. Sweep and all other double dealings eliminated.
2. any actual funds transferred from Treasury to GSE should be returned.
3. any funds actually needed should be charged a 10% per annum interest rate.
4. any over payment to Treasury should be returned to GSEs.
5. warrant that have not been exercised should be null and void.
6. DOJ intervention was covering the #$%$ of the Administration and Treasury, so no bonus for the Government is required.
7. Both sides agree that the conservatorship is no longer necessary and should be ended.
8. Both sides agree that further risk of taxpayer-funded bailouts must be eliminated and a commission is formed to address that eventual goal.
9. All litigation is cancelled and a court-appointed arbitrator is appointed to settle all open matters relating to litigation expenses and so forth.
I did not mean to imply that medallions are currently worthless, but if Uber and others are allowed to operate a taxi like service without a medallion and unchecked and unregulated by the city, then medallions will become worthless.