Even so, it is important to examine this link in order to learn how we can do a better job of both protecting consumers and protecting the stability of the macroeconomy in the future. The current economic situation developed over a period of years as the confluence of several market developments created an environment of inexpensive and readily available credit.
Advances in information technology and financial innovations over recent decades encouraged new lending products and the extension of credit to a wider spectrum of borrowers, including many who would have previously had difficulty qualifying for credit. Such developments as credit scoring lowered transaction costs and helped to evaluate risk more effectively and consistently.