Everyone would get hurt if the world's second-richest country were to collapse. Asians may get bloodied more than most, given Japan's key role as investor, lender and aid donor. The region is already reeling from an economic bludgeoning. Last week, South Korea grudgingly asked for help from the International Monetary Fund, joining Thailand and Indonesia in the IMF's intensive-care unit. About the only holdout is China, though it faces a banking crisis.
Japan has huge foreign reserves and a current-account surplus.
And many see a silver lining in the bankruptcies. Business groups in Japan are typically formed around a major trading company and a large bank. Known as keiretsu, the system protects members, including ailing units. Yamaichi belongs to the Fuyo keiretsu, which has Fuji Bank, the world's fourth-largest institution, at its center. Fuji's decision to let Yamaichi fail is a sign that the keiretsu system is crumbling.