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The consequences of the Dexia bailout, will be far and wide. As this video points out, Dexia has leverage of 60-1, while Lehman Brothers was “only” 30 to 1.

Additionally, the entire future of the euro was predicated upon Belgium being part of the European Financial Stability Facility (EFSF) mechanism to bail out others. Furthermore, France has also been forced to jump in, which puts its AAA credit rating on the line.

Should that fail, Germany will be left to shoulder pretty much the entire E2 trillion costs.

Let’s also not forget, Belgium is a country that has not had a government for almost two years, and the caretaker’s in place, have mostly resigned.

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