Whitney: Small Business Credit Collapsing

Tuesday, October 13, 2009 2:10 PM

By: Gene J. Koprowski

Credit continues to contract, and smaller firms and many consumers are suffering, notes bank analyst Meredith Whitney.

Whitney is best know for predicting the banking collapse that has enveloped Wall Street since late 2007.

“With the exception of large-cap companies, smaller-sized businesses are struggling to raise capital and the wider implications for the economy are bearish.

“Small companies employ 50 percent of the U.S. workforce and contribute 38 percent to GDP, or Gross Domestic Product,â€