The Spactacular boom on Wall Street
Are special purpose acquisition companies a useful innovation, a mania, or both? "There are two big dangers. One is that the SPAC boom becomes a bubble. Financial markets show many other signs of froth, including the recent GameStop retail-investor frenzy and the surge in Bitcoin’s price. If interest rates were to rise suddenly as a result of inflation, and the music were to stop in markets, the SPAC boom might end abruptly. That is unlikely to pose a risk to the financial system, but some firms would be left stranded at the altar. And SPAC investors might be clobbered."
From The Economist