Me too, I think that they (Treasury, Fed) will pay anything for the toxic stuff. So I expect double digit inflation for the US and the euro at about $2. However I do not think that the main players in the Bretton-Woods II will dump their dollars (dump them where?), but they will of course curtail somewhat their lending to the US. Still a few more interesting weekends on Wall Street are likely.

On a bigger level we will (developed economies) have recession or nominal growth until 2011 or so, maybe even 2012 if the house prices overshoot on the way down. Fall of one or more of the Big Three automakers and big airlines is quite possible (even if they are bailed out capacity will disappear). Hard landing for the east-European economies also a possibility.

The Americans will retreat quite quickly even if incompletely from Iraq, especially if Obama wins. Their gargantuan military budget will not fall very much, but I don't think it will keep its rate of increase either.

I am quite curious what it will happen with the healthcare cost in US. Normally it should go down, even dramatically, but healthcare is never a "normal" market.

Ow, and I expect that by 2015 we will be flooded by a wave of books that will explain that if the free market had been allowed by its own to find the "fair" value of all the junk and the companies that have it, without government intervention, the crisis would have been much shorter and would the US would not confront itself with all the inflation (which I suppose that in 2015 will be perceived as the main economic problem).