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The Bets Are Coming Due. SPACs In Trouble

Apr. 04, 2022 4:10 PM ET1 Comment
John M. Mason profile picture
John M. Mason


  • Jerome Powell and the Federal Reserve pumped up the SPAC market.
  • Now, the SPAC market is facing a Federal Reserve that might be going the other way!
  • Watch out!

Special Purpose Acquisition Companies. Investor"s hand flip wood cube change the word, SPAC or SPAM on wood table and grey background. Stimulate stock market from IPO model problem effect by covid-19

Parradee Kietsirikul/iStock via Getty Images

Here are the facts.

More than 1,000 special acquisition companies have been floated on global stock markets.

Two years on, more than 600 SPACs are still searching for a partner.

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This article was written by

John M. Mason profile picture
John M. Mason writes on current monetary and financial events. He is the founder and CEO of New Finance, LLC. Dr. Mason has been President and CEO of two publicly traded financial institutions and the executive vice president and CFO of a third. He has also served as a special assistant to the secretary of the Department of Housing and Urban Development in Washington, D. C. and as a senior economist within the Federal Reserve System. He formerly was on the faculty of the Finance Department, Wharton School, the University of Pennsylvania and was a professor at Penn State University and taught in both the Management Division and the Engineering Division. Dr. Mason has served on the boards of venture capital funds and other private equity funds. He has worked with young entrepreneurs, especially within the urban environment, starting or running companies primarily connected with Information Technology.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (1)

Stocks of actually profitable firms which were purchased at financially prudent prices, using appropriate metrics of fair value will be fine.

Stocks of non-profitable firms which were purchased by deliberately self-deceptive buyers without regard to appropriateness of metric or value, to further some ideological agenda, under the belief that "this time is different", will not be as fine.

Excellent article as always, Mr
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