I want to know the answer to the following question:
What impacted the ability of financial institutions to lend in the financial crisis of 2007?
All the background I'm provided with is that "These institutions, as well as certain regulated banks, had also assumed significant debt burdens while providing the loans described above and did not have a financial cushion sufficient to absorb large loan defaults or MBS losses.". Is that enough to answer the question?
Answer: yes