Credit Freeze Will Thaw in 2010

Banks will open their purse strings for the most worthy borrowers.

The credit freeze will begin to thaw over the next several months, giving firms with sound financials more access to capital that will let them invest, restock shelves and add staff.

By midyear, expect to see some loosening, though not a big melt. Banks will loosen their purse strings enough for a slow, steady stream of loans to start dripping into the economy. “Progress will be measured in inches, not miles,” says William McCracken, CEO of Synergistics Research Corp., a financial services research firm.

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Associate Editor, The Kiplinger Letter