Inflation in the Future?

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+March+2008.htm

Quoted from Bill Gross's Investment outlook:

1) home price declines have to be halted in order to revive the U.S. economy,
2) the Bear Stearns crisis and its solution will lead to increased government regulation and a higher probability of inflation,
3) J.P. Morgan (the old man) was right – character, not assets, should form the foundation for lending, although a reversion to this old-fashioned model is not likely anytime soon, and
4) whether you know it or not – whether you like it or not – you are bailing out Wall Street.