Excess Currency & Credit From Cantillon Effect Causing SPAC Madness

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Once of the best examples of the Cantillon Effect is the explosion in Special Purpose Asset Companies or SPACs. These are “companies” (not really companies but mash up conglomerations) where economic and political elites have access to enormous amounts ($100 million to $4 billion) of cheap currency and credit to buy distressed asset small and medium sized Main Street businesses that were shutdown because of politicians and bureaucrats or in temporary peril because of the pandemic.

Since February over 300 new SPACs have been formed and about 50% have already started the IPO process. This is clearly #SPACMadness thanks to the Cantillon Effect and artificially cheap currency and credit from central banks and governments with fiscal “stimulus” (bailouts)!



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