Excessive or risky lending can cause borrowers to default , the banks then become more cautious , so there is less lending and therefore less money .
The economy can go from boom to bust as happened in the UK and many other Western economies after 2007 .
Excessive or risky lending can cause borrowers to default , the banks then become more cautious , so there is less lending and therefore less money so that the economy can go from boom to bust as happened in the UK and many other Western economies after 2007 .