This is all true, but look at the context of discussion... Why would someone be discouraged from making future loans if the government printed money for the pur

This is all true, but look at the context of discussion... Why would someone be discouraged from making future loans if the government printed money for the purpose of paying them off? Because the government took action which directly and intentionally reduced the return on their investment beyond what they anticipated in their original analysis. That will effect their analysis for future loans, reducing the appeal of those loans. Thus discouraging them.