Dexia may need recapitalizing -ECB's Coene

My Orchids, Phalaenopsis, lined up like Dexia guarantees. Photo ET

Reuters reported the following comments by ECB's Coene:

"In June, Belgium, France and Luxembourg agreed to increase their aid to Dexia, a lender to municipalities, by raising their guarantees to 55 billion euros ($67.70 billion) from 45 billion euros originally provided to cover Dexia's funding."

So let's throw some good money after bad. Oh, it's only guarantees. Then why worry? Why can't we go up to 90 billion euros directly? We can do 3%. Easily. Luxembourg that is.