Inflation or deflation?
Which will win out? The $42 billion cash injection by the feds is inflationary, you can't print money and not expect prices to go up, and the amount of that cash injection leaves me bewildered, kind of like how I was jumping out of my seat each day I saw the US dollar drop compared to the Canadian dollar until that trend reversed. Certainly a big cash injection will prompt more devaluation of the US dollar.
But, what of this news, http://www.economicsbriefing.com/2007/11/goldman-sachs-predicts-2-trillion-drop.html, where it is being predicted a $2 trillion dollar drop in lending... That is an enormous contraction in the money supply.
Some say that we've had enormous increases in asset prices because of the enormous increase in money supply due to credit.
$2 trillion reduction in credit, ie money supply, sounds like an enormous contraction and you've got to ask yourself if any "assets" will continue to be valued as they currently are with this kind of a contraction...