This move by Trichet is a significant breach in the previous unity of purpose in dealing with Greek and peripheral debt within the EU.
If the ECB has no intention of rolling over its Greek holding why then should private investors even consider doing the same.
The warning given against the German finance ministers idea of pressurising investors in Greek bonds to accept longer maturities on their holdings is very sound.
It will send a message to the markets that this would only mark a beginning of the long process of forcing private investors to assist in the bailouts of the peripheral states.
The German government are also currently attempting to force investors into taking voluntary ‘haircuts’ on their Greece holdings.
This move is significant because it shows there is some solid political resistance within the Germany ruling party to further contributions in the second bailout for Greece.
That resistance no doubt is because of opposition among the German electorate and tax payers to providing further aid to Greece.
German political sentiment is crucial. The country is the paymaster of Europe and the entire EU project is dependent on the countries co-operation in funding weaker states.
The slightest whiff that they will fall back from their current stance will send shock waves through world markets and send the Euro tumbling.
Bond markets are not the place to be now and in a few months time the quagmire will get worse, much worse.