Jesse's Cafe Americain has a must-read post up about the hubris of those trying to predict the future when we are in such uncharted economic territory.
I've had the hubris to stick with stocks during GD II, and the hubris to buy an overpriced California 13% unemployment house believing that inflation would bail me out. All the while I've been troubled by the Japan conundrum: why hasn't Japan been able to print its way out of debt deflation, and do we risk following the same path?
You place your bets and you takes your chances. And you hope that this debt crisis doesn't end as badly as it might. Japan may be on the optimistic end of outcomes.