ECB’s Bini Smaghi: Restructuring of Greek debt would bring banking system to its knees

• Greek disaster would be contagious for whole euro zone
• Greek exit from euro would damage Greece but also other countries

System to its knees, contagious, damage oh-eh missus.

EUR/USD extends sell-off, presently at 1.4275.

• Countries that have to reorder public finances wait too long, luckily Spain has acted early
• Conditioning aid to debt restructuring would encourage perverse behavour