The FT has reported that

Nearly half the European companies needing debt restructuring over the next year will be in the UK, according to a survey of distressed debt specialists. They also expect the recent meltdown on Wall Street to lead to a tide of European corporate collapses by the end of the year.

Most people think that if we can save the banks the credit crunch will be solved.

Far from it. Next it's corporate debt that will fail. And that's going to be just as painful.

We have a long, long way to go before this one is over.