Blank Check Companies: The SPAC Mirage and the Financial Engineering of the Hype Economy

In a frantic search for astronomical returns, Wall Street engineered a loophole to bypass the grueling scrutiny of a traditional IPO. They asked investors to write billions of dollars in blank checks to empty shell companies, trusting charismatic sponsors to eventually find a profitable business to buy.

The SPAC (Special Purpose Acquisition Company) Mirage became the defining financial hysteria of the early 2020s. It democratized retail investing by wrapping deep-risk venture capital in shin...