Dexia Bank had such vast holdings, that trying to back it up may damage the credit ratings of France and Belgium. Dexia held much sovereign debt from Greece, Italy, and Spain. If France and Belgium don’t guarantee those holdings, there may still be a messy default.
Alone remains Germany. No one is damaging its credit rating. As I discussed yesterday, English credit agencies wouldn’t dare. Americans follow suit. It already seems like the 1930’s. They don’t want to re-create the 1940’s.