Greek Bond Yields Rip Higher as ECB Rejects Restructuring Their Debt

“European Central Bank officials warned of catastrophic consequences if Greece is allowed to restructure its sovereign debt.

“Default or debt restructuring is a dramatic economic and social event for the country which experiences it — I would call it political ‘suicide’ — which leads many into poverty,” Executive Board member Lorenzo Bini Smaghi said in Florence today. Fellow board member Juergen Stark said restructuring “wouldn’t be a solution to the problems that Greece needs to overcome.”

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