Because this could never have any side effects:
https://nypost.com/2020/05/11/nyc-taxi- ... be-250000/
Slated to be introduced this week by City Councilman Ritchie Torres, the plan calls for the council to enact legislation to force private lenders to revalue every taxi medallion at $250,000. In turn, the city would act as a guarantor on all outstanding loans, absorbing only the costs of drivers that default on their payments.
The new proposal is coming after local officials in January floated a plan to create a public-private partnership to bail out taxi drivers by buying back the medallions. While the program calls for unspecified discounts on the medallions, officials admitted the plan would cost upwards of $500 million.
Proponents of the new plan, meanwhile, argue that it would sidestep the need for a costly bailout. A $250,000 valuation for every medallion, Dange argues, could make for an attractive return for most lenders, who are now staring at the prospect of a slew of defaults, as well as a demand from the New York Taxi Workers Alliance to cap all medallion debt at $150,000.
Government is, as usual, a mechanism by which the politically connected (taxi unions, lenders, in this particular case) extract wealth from the non-politically-connected (taxpayers in general). Everyone is kind of to blame here: medallion purchasers, who assumed that medallions were magic investments that could never ever lose value; lenders, who were happy to encourage this belief because it meant people would borrow huge amounts for a medallion; the city, which was also happy to encourage this belief because it inflated the price it was getting for medallions; existing medallion holders, who didn't want to see the value of their purchase diluted.
I sort of feel like a sucker about aspiring to be intellectually rigorous when I could just go on twitter and say capitalism causes space herpes and no one will challenge me on it. - Hugh Akston