Having said that, some signals are still negative, and I don't see a lot of hope for this year. However, my general impression is that the descent is slowing down. I see plateau though, as there are quite a few fundamentals that need to be worked through - housing, credit, banking. I'm still hoping to pick up a nice piece of property at about 40% off today's prices... in about 5 years. We'll see, given that I'll need a lot more money anyway
Inflation still isn't the major risk. Wealth is still being destroyed, currently. You'll see inflation only if they dramatically overshoot that... least in the short run. The long run for inflation will be impacted, I'm sure - but that's a percent or two higher over a decade or more, depending on what happens yet.