If QE3 is a path to inflation (and I think moderate inflation will happen also), then the markets should rise. With the same economy and more dollars chasing the same goods, the price points should increase, leading to more revenues, leading to more earnings, leading to higher stock prices (at the same multiples). QE3 also makes bond investing rather unprofitable, chasing investment money out of there.
I agree that pensions are a problem as they are an undefined benefit. For accounting purposes a defined benefit is always preferred. The military pension system is arguably the best retirement deal around. The Federal Employees Retirement System is a nice deal also. Across all levels of government pensions were used as a handy way out of salary decisions. Politicians offered pensions which have a price down the road after they are out of office.
Eventually we need to convert to defined contribution plans with an undefined safety net plan as backstop. If Social Security is that backstop then it must have means testing to keep payments restricted to the most poor. Healthcare also needs that defined cost structure.
President Obama's agenda will depend on the economic recovery. If the economy recovers rapidly then the highest priorities will be fiscal and energy. Putting the US on a path to fiscal responsibility is necessary and fortunately we have a good President to do that. And the US must continue to push the multiple paths of energy production, rather than allowing the oil industry to write US energy policy, as the republicans always do.