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wredcolltoday at 4:12 PM3 repliesview on HN

Yes, you can but does that ability benefit the population/nation/market as a whole?


Replies

clickety_clacktoday at 4:24 PM

Yes, because the guy buying your bananas is able to make banana-buying decisions for next week based on the price you give him.

You’re not going to make up a silly low number because you actually have to buy the bananas yourself at some point, and you help price discovery because now that guy isn’t buying bananas at a higher price than someone is willing to sell them for.

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notahackertoday at 4:22 PM

Well yes, to the extent the possibility to do that helps stop silly price spikes from a very short term shortage of bananas.

8notetoday at 4:26 PM

yes because shorts can also be wrong, and the buyer knows they have a stable price