From a risk-minimization standpoint, they're right. Why lend to a small business facing the toughest consumer demand dynamics in generations when you can instead borrow from the Federal Reserve at 1/4% and lend it to the US Government at up to 3%?
Sure, the Federal Reserve is not technically part of the federal government, but they are deeply entwined, and can literally print money. The result? We taxpayers, through our government, borrow money with one hand as we lend it to ourselves with the other. Meanwhile, the banksters feast on the vig. Nice work if you can get it.
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