Credit Problems Continue

Even with all the emphasis on stabilizing banks, large corporations are still having problems getting loans. An article in The Economist finds that as banks begin scrutinizing companies more thoroughly, they are making loans to smaller companies easier than those to larger companies, going against the usual trend. The article stops developing this point, and goes off on a tangent about the continuing uncertainty regarding how deep of a recession there will be and to what extent companies will be able to keep up with loans.
The slowdown that is being predicted for the next year will put strains on all companies, big and small, and projections of companies likely to default in the next year are increasing. The concern of riskiness of companies that turn to banks for help in the meantime has increased as there is less available help with less credit. I gather from the article that a recession is a bad time to have a credit crisis, and a greater challenge is the unknowns with larger companies that may have more exposure than they let on. Distress for them may be a short distance from disaster and the larger companies may be a greater risk to aid.