The situation with Interactive Brokers is somewhat analogous to Uber vs. the medallion holders, although not necessarily in the speed of execution. For close to a hundred years or whatever (since 1937 in NYC) some poor shmucks had to buy a medallion to be able to do business. Some saved for years to buy one, others watched the appreciation of their prized property with great satisfaction. Then wham, Uber comes along and the system falls apart. Should there be medallions? Not in a free society. But if they exist, should their value be allowed to be drastically reduced because the collective government action suddenly allowed to a politically connected company what was considered a crime before? Not clear.





Speak your mind

2 Comments so far

  1. Jim Davis on January 20, 2015 3:54 pm

    The exact analogy escapes me.

    In any case, the losses suffered by speculators / Masters of the Obvious, picking up pennies in front of the Swiss Cheese, is not unexpected.

    That these events do not happen more often, only encourages the weak minded.

  2. Jayson on January 22, 2015 2:01 pm

    That value would be “allowed” to move anywhere highlights a problem in the free society’s markets. Comfort yourself knowing that the politically connected in both events made a tidy profit.


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