You and the parent post are both right. There's just 2 things: 1) we regulated that banks have access to capital (ie. we created the FED that will loan almost

You and the parent post are both right. There's just 2 things: 1) we regulated that banks have access to capital (ie. we created the FED that will loan almost unlimited amounts to them. And of course we bailed out "too-big-to-fail") 2) we outlawed that banks loan money to anyone but the government, or very big companies. After all, since they always lost the money, we've imposed more and more rules about who they can lend to. (always lost it, I might add, by lending it to government or big companies when we're talking large amounts, but that is conveniently ignored of course). Of course who they can lend it to means effectively not you or me.