With regard to the problems in Europe, investors have taken a great deal of hope from the promise of coordinated central bank "liquidity" operations in the event of deterioration. The problem here, in my view, is that whatever amount of liquidity central banks create, it cannot address the structural problem, which is insolvency and the need to restructure debt of peripheral European governments and the European banking system. Even if liquidity operations help to stabilize the markets, we will quickly return to a pattern of recurring strains. Make no mistake, Europe is in a solvency crisis. Central bank liquidity, coordinated or not, will not solve this problem.