Thus, as we saw in the 1970s and 1980s, in the near term households will adjust the thermostat and drive a bit less. However, over time they will tend to avoid products that use energy relatively intensively and will buy more fuel-efficient vehicles and  3/5  home appliances.
In the event, the rapid growth and diversity of financial institutions and products ran well ahead of the ability of financial institutions to understand their risk positions, of rating agencies to translate the new exposures that were created, and of regulators to ensure that financial institutions were managing risk prudently. Long-standing, well-conceived banking practices were abandoned as financial institutions focused on maximising short-term profitability.