The best thing that could happen is that QE3 continues, but will simply become old news. Fed would lose control of interest rates, and some of Zimbabwe Ben’s asset-inflationary bad work would be unwound. Better now than later when the fall will be even harder.

Bonus points when Q4 earnings (affected by shutdown) start flowing in three months and are compared with stock valuations. Add to that the Jan 15 deadline for another shutdown, and we might have interesting times ahead!

And yes, I know that stocks =/= housing, but the two are intimately related, at least emotionally.