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| Economy | |
| Paul Ryan - Trying To Cash In Big Time | |
| 2020-08-20 | |
[Zero Hedge] - The similarities with the housing bubble boom-bust are growing by the day. Not only are stocks at all time highs, to which we can now add record low yields and an all time high gold price as the 10Y real yield has dropped to an unprecedented minus 1% all time low sparking rampant risk-on euphoria among the retail investing community,
As we discussed three weeks ago, investment in SPACs usually surges near market peaks, when there is broad consensus among the professional investing community that equities are overvalued as there is now - as a reminder the August Fund Manager Survey from BofA found that a record 78% of Wall Street professionals believe that not only stocks but every other assets is the overvalued on record. ... Well, to this "blank check" frenzy we can now add the consummate smooth-talking politician and former vice-presidential candidate, Paul Ryan, who according to Dow Jones is also "jumping into the rush on Wall Street toward blank-check acquisition companies." According to the report, the former Republican House speaker will serve as chairman of a SPAC known as Executive Network Partnering which will seek to raise roughly $300 million in an initial public offering. Here's hoping he does a serious face plant on the IPO. Dude's been in politics all his life; Wall Street's gonna tear him a new asshole. | |
| Posted by:Raj |
| #6 And while the SPAC bubble burst in 2008 along with the rest of the housing/credit bubble, it has now completely recovered, and as Goldman's David Kostin showed in a recent Weekly Kickstart, SPAC capital raising has soared YTD. So, if Biden/Harris win, you’d better not be long anything except cash. It’ll be a bloodbath. |
| Posted by: KBK 2020-08-20 20:07 |
| #5 He lost me when he lost the VP debate with blustering bully Joe. |
| Posted by: Skidmark 2020-08-20 19:03 |
| #4 Bigger fool rule is operative in this market |
| Posted by: Sock Puppet of Doom 2020-08-20 17:46 |
| #3 Remember how well special financial vehicles worked out in 2008? I'm a pretty hard core capitalist. I think everyone should have wide latitude in investing their wealth. I also believe it should be equally possible to get killed as it is to make a killing (investing, that is) Anything else is a market distortion and a problem. We live with the real, not the ideal. But we should innately want better instead of whatever. |
| Posted by: M. Murcek 2020-08-20 16:17 |
| #2 Wikipedia: Special-purpose acquisition company A special purpose acquisition company, sometimes called blank-check company, is a shell company that has no operations but plans to go public with the intention of acquiring or merging with a company with the proceeds of the SPAC's initial public offering. SPACs allow retail investors to invest in private equity type transactions, particularly leveraged buyouts. |
| Posted by: trailing wife 2020-08-20 16:01 |
| #1 As they say, there's always a "greater fool." It's not difficult to imagine the sorts of people who would buy this over, say, a solid company that actually *cough* makes something people want to buy. No thanks, Eddie. |
| Posted by: M. Murcek 2020-08-20 15:42 |