What happens in the US tends to directly effect markets here in Australia. So what the Federal Reserve does in the US will have a trickle-down effect in Australia.
The Federal Reserve in the US has become a champion to big corporations in the US by guaranteeing the availability of liquidity and capital at record volumes and low yields and it will continue to do so, as it will always be there for big corporations. The excuse given is that if this was done in the 1930s then the US (and the rest of the world) would not have gone through a depression, and by doing this this time round the Fed has prevented a similar depression-like scenario. But this action has reinforced the 'bad' behavior of large institutions and banks, and it will filter its way to the consumer in the US eventually, once the consumer begins to borrow etc.
It is business as usual for most US institutions (that are still around) and this euphoria was and is reinforced by the US Federal Reserve as it stated that it would not allow these (irresponsibly) large institutions to 'fail' (again). But they did and they will again. The difference between now and lets say the late 40s is that they would have the scars to remind them that there is a discipline involved in lending, trading and speculating.
What surprises me is that a lot of the blame was directed at the previous US Fed Reserve and their ease of liquidity policy in around 2002 (and possibly before) that allegedly 'caused' markets (including housing) to inflate. Even if this is true, then what is being done today by the Fed Reserve is potentially worse as the liquidity that's been provided is around 7 fold to the 2002 example.
But is there another reason why the US Federal Reserve is pumping so much liquidity into the system? Could it be that by doing so, you are ensuring that the US has a weaker currency, thus helping your very large export corporations (some of which are at record highs on the stock market)? There will always be a winner in a game. The Fed also knows that by oversupplying the USD (making it cheaper) it has inevitably and inversely strengthened other currencies and conversely strengthened all commodities (most of which are at record highs). So what's the problem? The problem is that this inevitably creates inflation and true growth in your real economy has been stifled because of high inflation and high energy etc prices. So rallies like we have seen recently might have very little fundamentals attached.
From the US's perspective, you can make your competitors (includes other countries) peddle backwards by deliberately 'creating' and reinforcing this low US dollar, high inflation, high commodity/energy prices. A lot of unrest has resulted from these inflationary scenarios. This inflationary scenario doesn't benefit China either as it battles serious inflation and needs a healthy world economy. So how much is the rest of the emerging-market world being priced-out of this game? How much real inflation and potential danger is there in China, which still pegs its currency to a falling USD, but should appreciate when they've got around +10% growth?