The problem is too many loans. Loans make it too easy to do things so there's always more pressure to lend. Eventually you get to a stage where loans are secure

The problem is too many loans. Loans make it too easy to do things so there's always more pressure to lend. Eventually you get to a stage where loans are secured with loans (today's issue) because of greed and it becomes impossible to ever call in loans because it causes cascading failure. When the problem is too many loans 'how do you still let people get loans' is not the right question to be asking.