Why am I going into all these so-called gamification stocks? Because it is happening at the same time as another form of greed: the SPACs. Oh, they're being crushed. The SPACs [are] playing out.
You know, so far this year there’ve been 175 SPAC IPOs, which have raised $56 billion, which will bring in another $700 billion in mergers. $700 billion. The SPAC leaders are every bit as greedy as the WallStreetBets crowd.
They're bookends of greed, wanting instant riches and getting them. As someone who has brought a company public, I can tell you that SPACs shouldn't even be allowed.
You see, there's a process that companies go through with the SEC before they can come public. As much as I've found it tiresome and painful, really difficult, they're really after me. Why were they after me?
We can go read “Confessions of a Street Addict.” But it does benefit the buyer ultimately. Right now, the buyers have been winning, as they're early enough.
But this week has seen a reversion to a more normal regime with a fair amount of losers who don't really even know what they own. And the greedy guys [are] still cleaning up.
Remember the SPAC progression. The insiders raise a ton of money. And then they pay themselves. Winners.
Then the lenders give them money at a great valuation. Winners.
And then the public buys at a far more risky level, risky to the point that while they've made some money, they're not necessarily made as much money as investing in a bunch of good stocks in the S&P 500. And now they're in the process of giving up those gains, gains that were predicated on chimerical estimates for the out years that the SEC would never allow for regular IPOs.
Do you ever notice every one of these SPACs is making billions in 2027? Nevertheless, what they've done with these SPACs, along with the Reddit WallStreetBets people, is steal the fuel for traditional investing. There's just not enough money left -- pending the stimulus, which may or may not happen -- for traditional equities.
And we can have a nice rally today. But this rally would go away the moment that interest rates go up. And they could go up on a strong number tomorrow. I don’t know.