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Grasso on SPACS: 'Fluff concept,' disaster for investors
Dick Grasso: SPACs were a rocket ship idea that have been a disaster
Former NYSE CEO Dick Grasso and FOX Business senior correspondent Charlie Gasparino discuss if the SPAC frenzy is dying on ‘The Claman Countdown.’
As the number of companies going public by reverse-merging with blank-check entities or "SPAC"s slows dramatically from their feverish pace of just six months ago, former New York Stock Exchange CEO Richard Grasso is skewering the investment trend he says has left many investors holding the bag.
"From an investor view, they’ve been a disaster," Grasso told ‘The Claman Countdown.' "A SPAC is one of those rocket ship ideas that we had in the late 90s or the late 60s. They shoot like a rocket and they fall back to earth."
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Grasso’s rocket ship analogy might not be accidental.
In existence for decades, SPACs suddenly exploded in popularity in late 2019 when billionaire entrepreneur Sir Richard Branson chose the blank-check option to take his space tourism company Virgin Galactic public.