If the central bank of a cash-strapped nation started buying tech stocks with their foreign reserves, they’d rightfully be called out as loonies.
It’s why countries with surplus cash go through a lot of trouble to segregate their sovereign wealth funds from FX reserves. If the former goes down, it’s embarrassing. If the latter crashes, it’s existential.
"If the central bank of a cash-strapped nation started buying tech stocks with their foreign reserves, they’d rightfully be called out as loonies."
It's all optics. Because the above is exactly what happens, stocks got pumped 13 years in a row due to central bank policy. Do they own the stock? No, but they fully control the macro.
But anyway, my main point was to give a little pushback to the narrative, which seems driven by hate, a superficial "told ya", followed by dubious claims. It does not reek of a person that actually cares about any humanitarian issue at all.
If the central bank of a cash-strapped nation started buying tech stocks with their foreign reserves, they’d rightfully be called out as loonies.
It’s why countries with surplus cash go through a lot of trouble to segregate their sovereign wealth funds from FX reserves. If the former goes down, it’s embarrassing. If the latter crashes, it’s existential.