The problems arising atm are due to excessive debt taken out over the current decade. Rewind just 10 years and I doubt you'd see banks bloated with toxic debt that is next to worthless but able to be sold for more temporarily. Lending, or even increased lending, isn't the problem here, it's irresponsible lending, i.e. lending to someone who is unlikely to be able to repay, and/or securing that debt against an asset worth as much or only slightly more (at the time of lending) as the loan itself, or worse, lending more than that assets value. Leveraging of a firm more generally can be a good thing not a bad one though, since it allows firms to undertake investment that is beneficial now, rather than having to wait a few years to try and get together funds from retained earnings to undertake it, by which time it may be too late. As a result, I don't really understand the points+links made in your OP.

Penicillan is good.  But you can OD on it. Deregulation is not bad in itself.  It does not mean giving away the store, only making the operation of it easier.

So it's lawful for the banker knowing that in the safe is only one dollar yet draws up a car loan for $20,000[?]

The homeownership society began in the late seventies[CRA-Community Reinvestment Act] which was simply to prevent lenders from arbitrarily "red-lining" [excluding] minorities from loans to erase the mindset that lending to minorities is too risky. If lenders used the standard critera for lending there wouldn't be this mess.