Why Banks Dont Lend Money

Ever wonder why banks don't loan money to people who need it?

I'm going to answer this with an analogy.

Let's say you have a pickup truck.

You have a friend who asks you if they can borrow it for the day because they need to move something that doesn't fit in their car. They have been driving that same car for 5 years, and you can borrow it, if you need.

Now, you have a second friend who asks you to borrow your pickup because they just wrecked their 2nd car in less than a year.

Which friend would you let borrow your pickup? The first one, because they are a good driver. Banks feel the same way about lending their money to people.

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