Thus, the move by the central banks, by printing money and making it readily available to the banks, only postpones the inevitability of having to solve the solvency issues. It buys time. The tradeoff is twofold: 1) it increases inflationary pressures; 2) it allows the solvency problem to continue to fester, and perhaps, become even worse. The sovereign nations have two choices: inflation or austerity. They would choose the former except for Germany's resistance. That story is still being played out. For the banks, significant recapitalizations must occur. We are likely to see a lot more drama played out on this issue, especially if one of the larger institutions has a misstep or is attacked by the marketplace as we saw in the U.S. in 2009.