Whipsaw, Recovery and Panic

Many are reporting that the current bailout total stands near 8.5 trillion, that is three quarters of GDP or more than 100% of M2. What is keeping runaway inflation at bay besides fear and a reluctance to lend on the part of those bailed out? Why are so many buying treasury bonds while Warren Buffet and others are buying equities? Is the value of the dollar balanced on a knife's edge here? It seems so...