Nationalising banks not smart-lend to the banks-McWilliams

Don’t bank on the banks: check the balance sheets before forcing mergers

David McWilliams
19 October 2008 … 98843.html

So the government lends to the banks. The banks default on the loans, but they are guaranteed by the government.
How does that work?

So how does this differ from any other country where usury is practised? Foreign investors are not going to think any better of all the other countries which have huge debt bubbles and where those responsible are still pulling the strings.