Tuesday, February 10, 2015

Only communists must believe it is safer for banks to lend to governments than to small businesses and entrepreneurs.

Since regulators allow banks to hold much much less equity when lending to the sovereigns, than when lending to small businesses and entrepreneurs, that must imply they think it is safer for the society to lend to the government, than to lend to the small businesses or entrepreneurs.

If you were not a communist, why the hell would you believe that?

And please don't tell me it is because sovereigns can print money!