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comment by EnumClass
EnumClass  ·  3103 days ago  ·  link  ·    ·  parent  ·  post: World's central banks ease away from negative interest rate policies

    ... a central bank should NEVER be betting that the firms they're moderating currency for are gonna suffer under your control.

When the central bank decides to raise interest rates, it does so by selling bonds in order to ensure their price falls. That might appear to be a 'malevolent' act, forcing the price down and (deliberately) making it difficult for money creation (borrowing) to happen. Do you object to the selling in general (i.e. deliberate pushing down of asset prices?), or just to a more narrow form of selling (e.g. selling something you don't own already - i.e. shorting?)





kleinbl00  ·  3103 days ago  ·  link  ·  

I object to shorting - the mechanism by which you profit on the misfortune of a security. Which is not to say I don't practice it from time to time but as I said, it's a zero-sum application of a positive-sum game and as central banks are tasked with increasing the positive sum, there's no reason or justification for them to short anything.