>> Clearly this is a speculative asset, like real estate and Rembrandt.
>
> Yeah, but if the projected income stream is reduced, so to is the
> value of the capitalized asset. It's a perfectly rational downgrading.
I think Michael was remarking in general about the price, not the specific market action.
Anyway, I think this is just (one) general downside to privatization: if a NYC medallion is "worth" $1M, shouldn't the city get it (or at least some of it) in the form of an ongoing tax or something, rather than the folks who buy and sit on them?
/jordan