The Many uses of Credit - Peter Schiff

"Whenever an outside force, such as government, encourages or demands that savers make loans for reasons that may have nothing to do with the actual likelihood of
repayment, higher degrees of loss are almost inevitable. Such distortions waste society’s savings. In their zeal to do something good, governments like to
influence the way savings are lent out. They pass laws that make some types of loans more appealing than others. But government has no savings; only individuals do! If, as a result of government incentives, the loans go to individuals or businesses that fail to pay off (and they often do), then the loss falls to those individuals who have sacrificially under consumed to create savings! In fact, Able would be much less inclined to lend in the first place if he were forced to make loans that he felt were excessively risky, such as in the case of fish hypnosis. As a result, he may
decide not to work as hard, or not to sacrifice as much to save!"
Peter D. Schiff and Andrew J. Schiff in How an Economy Grows and How it crashes