Me and my AI friend ChatGPT

I asked ChatGPT:   " If banks are required to hold much more equity against loans to small businesses than against Treasuries and residential mortgages, as a small business, is my access to bank credit made harder than it would be in the absence of such regulation? " ChatGPT answered: "Yes, if banks are required to hold more equity against loans to small businesses compared to other assets such as Treasuries and residential mortgages, it can potentially make your access to bank credit harder as a small business. The regulation you mentioned is typically based on risk-weighted capital requirements, which are imposed by regulatory authorities to ensure the stability and safety of the banking system. These requirements aim to mitigate the risks associated with different types of assets held by banks. When banks are required to hold more equity (capital) against loans to small businesses, it increases the risk-weighted capital requirement for such loans. As a result, banks m...

  1988, for risk weighted bank capital/equity requirements, the   regulators decreed weights: 0% governments and 100% citizens . I asked ChatGPT:  "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?" ChatGPT 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...