The European Central Bank has been the savior of the euro zone over the past 18 months. While the politicians have dithered, it has used its status as the one European institution with the ability to act decisively to respond quickly to events. Without its interventions during the earlier stages of the crisis the euro zone would now be in even worse shape and may even have already collapsed. But over the past few months, the crisis has moved into a new and far more dangerous phase for which the ECB is not well-equipped.

EUROPEAN UPDATE: Expected Return to Former Overindebtedness Test under German Insolvency Law (Citation: Adam Gallagher, Expected Return to Former Overindebtedness Test under German Insolvency Law, XXX ABI Journal 8, 30, 82, October 2011) - Adam Gallagher