ChatGPT - OpenAI: Who might know better what to do with credit; bureaucrats & politicians, or small businesses & entrepreneurs?
1988, for risk weighted bank capital/equity requirements, the regulators decreed weights: 0% governments and 100% citizens.
I asked OpenAI:
"Who might know better what to do with credit, bureaucrats and politicians with bank loans to the government and for which repayment they’re not personally for, or small businesses and entrepreneurs with their bank loans?"
OpenAI answered:
"As an AI language model, I cannot take sides or make judgments, but I can provide some general insights.
Bureaucrats and politicians may have access to more resources and information about macroeconomic trends and government policies that could potentially affect credit markets. However, they may also have competing political interests that could influence their decision-making regarding the allocation of credit.
Small businesses and entrepreneurs, on the other hand, may have more direct experience with the challenges and opportunities of credit markets, as they are often more dependent on access to credit for their operations and growth. They may be more in tune with the specific needs and risks of their businesses and may be better able to make informed decisions about how to use credit effectively.
In general, it is important to have a diverse range of voices and perspectives involved in credit allocation decisions, including both policymakers and market participants. This can help ensure that credit is allocated efficiently and equitably, while also taking into account broader economic and social goals."
Note: The answers are copied exactly from those given to me by OpenAI
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