Spac deals are back, this time with a Trump bondage

Prominent notes, companies without clear plans, the investors felt burned: the boom in the pandemic era in risky investments called Spacs was an investment madness that many would certainly like to forget.

Well, it's back. A flood of Spac deals was announced last month, and the most sought-after interventions participate in the orbit or investments by President Trump, which is close to his heart.

One is set up by important managers of the Trump Media & Technology Group. Another is supported by an important advisor to Saudi Arabia. The investment bank in the center of many SPAC deals is connected to the Trump administration trade secretary.

Many spacs that have come onto the market in the past few weeks are aimed at cryptocurrency or blockchain company – part of the market in which Mr. Trump and members of his family were particularly active.

Spacs or special companies for purposes are naturally speculative. They allow people to collect money on the stock exchange without a business plan. Instead, the managers usually have two years to acquire a business with the means they collected, or they have to return the money.

In the years after the beginning of Covid 19 pandemic, as risky investments, it seemed to be a form of entertainment, Spacs became a dollar phenomenon over $ 200 billion. By 2021, the busiest year for these deals, 613 spacs were hovered on the stock exchange and seemed to collect $ 163 billion. Former politicians like Paul Ryan and Bill deadline; and highly profiled billionaire financiers.