In the 1920’s stock market mania was in full bloom.
The stock market was so hot that companies were issuing public share offerings at an unprecedented rate.
In fact you didn’t even need an operating business to issue a public share offering in those days. The share offerings would sell out regardless making instant millionaires out of the company founders.
Here are a few quotes from those days.
“We will not have any more crashes in our time.”
This was said by John Maynard Keynes in 1927, two years before the stock market crash which led to the Great Depression.
We will not have any more crashes in our time.
This was said by John Maynard Keynes in 1927, two years before the stock market crash which led to the Great Depression.
“I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish and recede in the near future.”
– E. H. H. Simmons, President, New York Stock Exchange, January 12, 1928
So fast forward to our modern era with our advanced digital society. In 2020 the special purpose acquisition company became a really popular vehicle. These have been around for decades, but have not been that popular. These blank check companies were created for the sole purpose of acquiring a private company and enabling it to go public using the funds raised during the IPO of the SPAC.
Forgive me if I’m the only one who thought this was eerily reminiscent of the 1920’s stock market mania.
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Host: Victor Menasce
email: podcast@victorjm.com
