Reactions to the reported capture of deposed Libyan leader Moammar Gadhafi started to trickle in from around the world as governments tried to digest conflicting accounts of his state and whereabouts.

After two years of denial about the European periphery's solvency problem, European policymakers are finally, grudgingly, facing reality. They are recognizing that Greece is almost certain to default by year-end. And they have concluded that it is…