Yes the banks are getting smarter but it is a little too late.  What I am noticing right now is that banks are cutting off business credit lines.  Many of the borrowers just paid interest on the loan.  Now banks are requiring many borrowers to start paying down the credit line.

The three people I know that have credit lines can barely afford to pay the interest let alone pay them down..  Out of the three people I know none of the business's are doing well.  They may all close down their businesses.  I wish all of them the best.

I just don't know if it would have been better that the banks never loaned them the money at all.  Who am I to judge.  I just hope all these good people land on their feet.