3 ms·

I don’t know if it was me, but I generally agree that SPACs seem like a bad idea for everyone except the person dumping the result on the public for quick cash.

• rurp 4y ago
  The incentive structure with SPACs is so blatantly perverse, I'm shocked they became so prevalent. The sponsor makes a boatload of money for any deal, regardless of how terrible it is, and always loses money if they don't make a deal. Given that setup, it would be shocking if there weren't a lot of bad deals. The popularity of these vehicles honestly makes me question the competence of many supposedly sophisticated investors and executives. I get that a lot of this was targetted at taking advantage of low information investors, but many professional investors dumped money into these things as well.
  • lazide 4y ago
    It wasn’t just homebuyers signing no contingency/no inspection deals for fear of losing out the last few years. When there is a lot of money chasing fewer and fewer deals, this is what happens.
    • gonehome 4y ago
      At least in the Bay Area you’ve always had to waive contingencies to have any hope.