Why Do Banks Extend Big Loans To Governments?

About a decade ago, I learned the hard way that banks don’t lend to startups.  It’s just not what traditional banks do.  Too much risk.  The risk associated with startups is to be assessed by venture capital, private equity, etc.  It’s why John Tamny says that banks lend to those who don’t need it.  This is all straightforward and nothing new, but before the reader is tempted to ditch this article, ask yourself, “If banks don’t extend credit to startups, due to their immense risk, why do they lend to governments?”  Instead of answering that question, I’ll argue that lending to governments is not only bad for business; it’s immoral.  But first, it’s imperative that I clarify the following.