Will the Fed print us out of trouble?
There are only 3 possible scenarios.
1. The Fed practices monetary discipline, the credit markets take it in stride and everybody lives happily ever after.
2. The Fed practices monetary discipline, credit markets collapse, banks go kaboom, houses begin to cost what they should cost and homeowners take Bernanke to court, and this second scenario is by far more likely than the first.
3. The Fed orders a new printing press and floods the market with worthless dollar bills. The third scenario is the most likely because the second is more likely than the first.