[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,
| Whew! Try doing all that on one breath — betcha can’t, which is one definition of a run-on sentence... |
but over the past year there has also been a veritable explosion of "blank check" companies which are shell companies that have no operations but plan to go public with the intention of acquiring or merging with a company with the proceeds of the SPAC's initial public offering.
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.
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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. |