I know more people who have a SPAC than COVID. This should SCARE YOU!

Special Purpose Acquisition Companies (SPACs) are booming. Nearly $26 billion was raised in January 2021. SPACs or public shell companies exist solely to find a private company to buy and take public. SPACs tend to acquire a target at five times their size. With nearly 300 such funds sitting on some $100 billion this equates to $500 billion in acquisition funds.

Are SPACs the next bubble waiting to emerge from a market where interest rates are nearly zero. SPACs generally must use the money they’ve raised for a takeover within two years or return it, incentivizing them to get any deal done, rather than a good one.

If America is going to reindustrialize are we just shuffling paper or deckchairs on the Titanic? America needs to create new business, not acquire and shuffle paper.

Is a SPAC just a way to avoid traditional IPO requirements?