Wall Street’s Big Banks Score $1 Trillion of Profit in a Decade
In early 2020, analysts were writing obituaries for Wall Street’s run of record profits. Instead, the banks helped spark the boom of blank-check companies known as SPACs. Later, once regulators got jittery and prices soured, investors were left holding the bag.
Profits in 2021 also got help from an accounting move: The banks felt good enough about the economy, thanks to government intervention, to release some of the reserves they had set aside in case loans soured.
Max Abelson and Hannah Levitt Bloomberg 27 December 2022
A special purpose acquisition company SPAC;, also known as a "blank check company",
is a shell corporation listed on a stock exchange with the purpose of acquiring a private company, thus making it public without going through the traditional initial public offering process
https://en.wikipedia.org/wiki/Special-purpose_acquisition_company
The warning signs are already apparent
in today’s high price-to-earnings ratios, low equity risk premia, inflated housing and tech assets, and the irrational exuberance surrounding special purpose acquisition companies (SPACs), the crypto sector, high-yield corporate debt, collateralized loan obligations, private equity, meme stocks, and runaway retail day trading.
Nouriel Roubini Project Syndicate 30 June 2021
https://englundmacro.blogspot.com/2021/07/roubini-warning-signs-are-already.html
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