Higher interest rates are sowing chaos across businesses and whole sectors of the market, according to “SPAC king” Chamath Palihapitiya, Markets Insider reports.
In an annual letter to investors, the Social Capital CEO leveled more criticism at the Federal Reserve over its aggressive rate hikes over the past year. The policy move has weighed heavily on risk assets, and helped burst the bubble in so-called blank-check firms that Palihapitiya rode during the pandemic boom of 2020 and 2021.
“The amount of absolute value destruction, not just in companies, but entire sectors … was alarming,” Palihapitiya said, pointing to the decline in areas like crypto and special purpose acquisition companies, shell companies that raise capital to expedite the IPO of an existing company. Read more.
