The Fed will try to pull another rabbit out of the hat. However, they’re running out of rabbits. Inflation will cause foreigners to loose on their investments; they’ll demand higher returns which will cause rates to go up. That might cause housing prices to drop while consumer prices increase. We are now too endebted to foreigners not to worry about the global repercussions.
The best course of action is to let the markets work and flush all the crap out of the system.
