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OLIVER CHARLES - The New Yak Times - Business And Financial News Using Memes

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It's February 24th, 2021.

For those of you living in Palmdale, Florida, you can expect sun, mixed clouds, a high near 85, and a slight ESE breeze. Humidity is a low 66% so you've got a hot dry hump day ahead of you. 

Last week's newsletter had a 60% open rate, just 9% shy of our goal. The most loved meme was a standoff between a Texan and a snowman. 

It was a slowish news week, so in addition to big stories, we'll examine some ongoing phenomena... enjoy!

  • Are we in a bubble? 
  • Rush Limbaugh's death  
  • What is a SPAC? 
  • Air fryers = food machines 
  • People aren't fleeing to Miami 
OLIVER CHARLES - The New Yak Times - Business And Financial News Using Memes

What will pop the next bubble? 

Think back to 1929. If you weren't alive, then think back to 2001 or 2008. In each of these years, reckless speculation ran rampant. It's hard to deny that reckless speculation isn't running rampant today.

However, things are a bit different this time around. Financial reform has forced banks and companies to shore up balance sheets. The speculation seems to be less concentrated in specific asset classes. Also, the government is pumping stimulus into the economy like never before.

Unfortunately, we won't know we've reached the peak until it's too late. So, it's not a question of when rather than what and how bad? Here are our predictions for what will cause the bubble to burst.

  • SPACs (see below) 
  • Climate change causes Miami to sink, subsequently ending VC industry (read more)
  • Too much stimulus causes massive inflation (read more)
  • Elon Musk tweets that the stock market seems too high (read more)
  • Retail investors leverage up too much (read more)
OLIVER CHARLES - The New Yak Times - Business And Financial News Using Memes

Who had more fans, GoT or Rush? 

A week ago today, Rush Limbaugh, a mainstay of conservative media, passed away. It's hard to understate the impact that Limbaugh had on American politics and the media. Regardless of what side you're on, Limbaugh's legacy is astonishing. His show reached 15 - 20 million people each week. To put that in perspective, Game of Thrones had about 10 million viewers each week. His reach and extreme views on conservative issues are often credited as the inspiration behind Fox News, President Trump, and Cersei's rise to power.

The Legacy of Rush Limbaugh >>
OLIVER CHARLES - The New Yak Times - Business And Financial News Using Memes

277 companies and $76 billion 

That's how many SPACs, aka "Special Purpose Acquisition Companies", aka "Blank Check Companies" there are in the world. Of those 277 registered SPACs, 219 were created in 2020 and raised a total of $76 billion.

What are SPACs? Basically, they are shell corps that go public. Once public, they search for a private company to acquire using the money they raised during the IPO.

The rise of the SPAC is largely due to the fact that it makes it easier for companies to go public. This is especially true for VC-backed companies that have yet to turn a profit. Making them a hotbed for reckless speculation as retail investors sign over big checks.

List of all publicly traded SPACs >>
OLIVER CHARLES - The New Yak Times - Business And Financial News Using Memes

It's an Air Fryer owner's world, we're just living in it. 

2020 was undoubtedly a tough year for everyone... unless you were an Air Fryer salesperson. In that case, it was probably the best year of your life. 2020 was the year the Air Fryer officially overtook the Instant Pot as the go-to kitchen item. While the Instant Pot CEO has been under pressure from the board, Air Fryers sold 2 million more units than the same time the previous year. This is likely due to the pandemic. A better explanation is that millennials who are more likely to post online are getting older and Air Fryers are suddenly less boring.

According to Reddit, this is the best one >>
OLIVER CHARLES - The New Yak Times - Business And Financial News Using Memes

Are people really leaving cities? 

Not really... unless you live in New York or San Francisco. For the most part, people stayed put during the pandemic. Even in NY and SF, everyone didn't pack their bags and move to Miami. Rather, they moved from the city to the burbs to buy homes. In Manhattan, home sales were down 54%, whereas they were up 44% in neighboring suburbs. People seem to be looking for more space. According to Redfin, sales grew nearly 10x faster for large homes on the outskirts than shoe boxes in prime down town.

The most expensive homes of 2020 >>

Thanks for reading, please share. 

If you found this Morning Brown funny, we'd appreciate it if you forwarded it to a friend or colleague. If you did not find it funny, we'd appreciate it if you forwarded it to an enemy or colleague. Meme credit is due to the following accounts. If I missed someone, let us know!

@sadanduseless

@theonion

@middleclassfancy

@litquidity

@entreprenewer

Finally, please send us memes!

Subscribe below for weekly updates on the absurdity of the business and financial world. We spend all day on social media so you don't have to.