5 ms·

Unfortunately i don't think you understand how a SPAC works. Retail gets burned, original investors make money through liquidity and so do the executives and w

Unfortunately i don't think you understand how a SPAC works. Retail gets burned, original investors make money through liquidity and so do the executives and whoever brought the SPAC to the market as long as the company doesn't crash and burn before 6 month lock-up. What you are unintentionally saying is that you don't care if a bunch of smart people just made money off mom and pop (retail) investors if it turns out to be over hyped and doesn't derive value.

cblconfederate 5y ago
> just made money off mom and You make it sound so bad but maybe it really IS bad. Maybe it's better that these smart people make some money, while moving the field of quantum optics somewhat further, than if some advertisers do.
- boringg 5y ago
  Only reason I say it is bad is because the insider really know if this is going to perform well or not - SPACs have not traditionally done well and have left mom and pop // retail investors as the bag holders in many cases. I mean you could say what the pied piper of SPACS (Chamath Palihapitiya) said which is "do your own due diligence" but he was highly conflicted when he said that (hyping SPAC deals that have since shed significant value while make money on the initial transactions). To be fair we still have to see how the SPACs from the last year perform over the next 5 years. My guess is that they went to the public markets when it was rich and retail investment was high though the future is unwritten. I just wanted to correct your assertion that it was the wealthy that are paying for this, when in fact it is likely just retail investors who will hold the end result (whether good or bad).
philshem 5y ago
For those interested, longform article about SPACs: https://www.newyorker.com/magazine/2021/06/07/the-pied-piper-of-spacs https://www.newyorker.com/magazine/2021/06/07/the-pied-piper...
varelse 5y ago
Caveat Emptor. Probably better odds than PowerBall at least. But yes, avoid, avoid, avoid IMO. You can't stop people from trying to get rich quick.
elefanten 5y ago
"Mom and pop" retail investors aren't making substantial investments in SPACs without ample warning. Mom and pop are mostly in ETFs. I don't believe anyone unaware of the risk is systematically or substantially investing in SPACs.

cblconfederate 5y ago

> just made money off mom and You make it sound so bad but maybe it really IS bad. Maybe it's better that these smart people make some money, while moving the field of quantum optics somewhat further, than if some advertisers do.

boringg 5y ago
Only reason I say it is bad is because the insider really know if this is going to perform well or not - SPACs have not traditionally done well and have left mom and pop // retail investors as the bag holders in many cases. I mean you could say what the pied piper of SPACS (Chamath Palihapitiya) said which is "do your own due diligence" but he was highly conflicted when he said that (hyping SPAC deals that have since shed significant value while make money on the initial transactions). To be fair we still have to see how the SPACs from the last year perform over the next 5 years. My guess is that they went to the public markets when it was rich and retail investment was high though the future is unwritten. I just wanted to correct your assertion that it was the wealthy that are paying for this, when in fact it is likely just retail investors who will hold the end result (whether good or bad).

philshem 5y ago

For those interested, longform article about SPACs: https://www.newyorker.com/magazine/2021/06/07/the-pied-piper-of-spacs https://www.newyorker.com/magazine/2021/06/07/the-pied-piper...

varelse 5y ago

Caveat Emptor. Probably better odds than PowerBall at least. But yes, avoid, avoid, avoid IMO. You can't stop people from trying to get rich quick.

elefanten 5y ago

"Mom and pop" retail investors aren't making substantial investments in SPACs without ample warning. Mom and pop are mostly in ETFs. I don't believe anyone unaware of the risk is systematically or substantially investing in SPACs.