The last decade saw a bubble that rivaled the subprime mortgage mess that arose in 2004-2006.
With low interest rates, banks were flush with money to lend. This caused a lot of bubbles to arise in many different asset classes.
One of the ones overlooked is with taxi medallions. New York City cab drivers, many who were immigrants from other nations, saw their American dream turn into a nightmare. Over the last decade, brokers and fleet operators got rich off the cab drivers who were forced to buy inflated medallions. Some might say the market was completely manipulated.
The price ran up from $200,000 to over $1 million per medallion. Almost all of this was financed and now are seeing defaults. The price went up while the money cab drivers were pulling in remained flat. Over the passed couple years, the bubbled popped with a 50% reduction in the value of these assets.
This is leading many cab drivers to end up in dire straights. Six drivers committed suicide in the past half year due to the onus placed upon them.
To read full story, click on image.
About 95.42$ has been spent to promote this content using Steemium.
Learn more here!
You got a 45.03% upvote from @brupvoter courtesy of @steemium!
Wow
Posted using Partiko Android
You got a 44.79% upvote from @joeparys! Thank you for your support of our services. To continue your support, please follow and delegate Steem power to @joeparys for daily steem and steem dollar payouts!