SubSPAC

SPACs are money-laundering devices for new entries in the stock crime index. The sole purpose of a SPAC is to evade the few remaining regulations on initial offerings of crime shares.

When a fake company wants to enter the NASDAQ Murder Index but knows it’s too blatantly bankrupt to get past the weak rules, it creates a fakely independent Special Purpose Acquisition Corporation. The SPAC itself hasn’t incurred any losses yet, and isn’t publicly associated with the bankrupt CEO. The fake company allows itself to be Acquired by the Acquisition Corporation. At that point the fake company is no longer a corporate structure, so it doesn’t have to pass through the few remaining rules. The SPAC can then enter the crime market with “clean hands” and start boosting Share Value to infinity in the usual way, creating fake Innovative Disruptions, killing factories and workers, and losing billions of dollars. These qualities are sexy and attractive to day traders and bitcoin jocks, who buy up billions of fake shares in the fake SPAC, driving its fake “value” up into the hundreds of billions. The original CEO has already cashed out via the Acquisition, so he can start spending his loot on giant mansions, boobalicious babes, and million-dollar “meals” at Nouvelle Cuisine “restaurants”.

SPACs would have been strictly illegal under New Deal stock rules. SPACs are pure money laundering devices.

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Substack is a SPAC for culture and media.

When a mainstream influencer is tired of the limited wealth available in the fading old newspaper industry, she makes fake waves and gets Canceled by the fading old media. Now she is “independent”. SubSPAC pays tremendous amounts of money to Acquire big names who want to appear “independent.” After the influencer gains thousands of subscribers in the cultural SPAC, her “independence” is certified, and she’s attractive and sexy to the Venture Capitalists who run the streaming services and networks now. A streaming service buys her newsletter and she’s back in the big time with bigger money.

It’s a new version of an old Hollywood game perfected by Rita Hayworth.

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Note for fairness: Workarounds and holding corporations are sneaky but NOT necessarily bad. Many workarounds keep a GOOD thing going when dominant laws, economic conditions or cultural rules would destroy the GOOD thing.

Two examples:

1. Willys was left out of the 1953 merger mania because its CEO Ward Canaday had a bad reputation among the other execs. Nash was the best partner but George Mason didn’t trust Canaday. Edgar Kaiser saw the potential, bought Willys, quickly abandoned his dad’s failed car, and turned Kaiser’s auto division into a holding company for Willys. Edgar simply let Willys be Willys, with solid capital support. Willys prospered and started setting national trends, and finally got bought by Nash’s successor AMC in 1970. Willys is still going strong now.

2. When I worked at Penn State in the 80s, the engineering school pulled a workaround to insure that its engineers could learn necessary subjects. The rest of the college was already bogged down in the swamp of modernism. The English department taught Deconstruction instead of writing, so engineering substituted its own courses in purposeful communication and competent writing. Math was teaching weird shit like Sets and Fields and Rings, which are not math at all. Instead, these disciplines take apart the formal text of real math, as Deconstruction takes apart the formal text of literature. Engineering substituted applied math, using math as a tool to help build structures and circuits. Physics was lost in the weird sci-fi fantasy of quantum quackery and meta-relativity, paying no attention at all to momentum and force and friction. Engineering substituted courses in “engineering mechanics”, strictly real Newtonian physics.

I don’t know if these workarounds still survive; in any case American engineering is irrelevant now that we’ve unconditionally surrendered our entire productive economy to China.