Below is a link to another good piece by Nouriel Roubini (on oft quoted favorite) and Ian Bremmer (author of “The Fat Tail: The Power of Political Knowledge for Strategic Investing” (Oxford University Press, 2009). In short, they lay out what they believe the Fed must do to navigate this ongoing crisis and prevent or mitigate the next one. There are many things that the Fed alone must do correctly to avoid either causing another recession/deflation (as they drain the sea of liquidity during a recovery) or another yet-unknown bubble (by leaving rates too low for too long as Greenspan did in 2003-2005).
The Fed is just one institution and there are many things it must get right. There are many institutions (e.g., Congress, banks, investors) and many countries acting on the global financial stage. There are many opportunities in the world today. There are many potential pitfalls. Real diversitification is more important than ever. As we describe it, US investors have moved from a checkers to a chess world. This requires a fresh look at how portfolios are constructed and managed.