What Went Badly Wrong
People borrowed against their homes, or purchased new homes, with help from Banks. Wages aren't keeping pace with inflation, so folks can't make the payments on all those variable interest rate loans. They are losing their home. Perhaps more important many, many folks are spending far less because they are borrowing less. Partially its because folks have gotten scared. Partially its because banks are less likely to make loans.
People are spending less. That means that producers are getting the signal to produce less. So they are not giving out wage increases. They may be firing people soon. If some way isn't found to make credit available to people and businesses so the amount spent can continue to increase, we will slide into recession.
The Ugly Truth
Now, here is the really ugly thing. It is possible to have massive inflation and massive recession at the same time. If you have a massive number of dollars circulating, and no one trusts they will hold their value for very long, folks will stop producing new goods and selling them for those dollars. Its too risky to invest much in enterprises that might receive a bunch of worthless dollars. That's the kind of ugly thing that happened to Germany in the 1930's where the world saw wheel barrows of cash chasing loaves of bread.
A Tough Situation
It is unwise to pretend that its business as usual here in the United States. Inflation can wreak havoc in an economy but stagflation can destroy it. We face a monetary system in crisis and, what is really frightening, there is no easy way to fix it.
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