patrick.net

Here is a chain of events which will serve as a catalyst for the next wave down:

1. Fiscal cliff will be kicked down the road, again.
2. Look for S&P downgrading US rating by February, 2013.
3. As a result China/Japan/OPEC selling bonds en mass.
4. As a result, FED to raise QE-infinity to $60B/month, which also will include T-bill buying.
5. Banks, realizing that FED is the buyer of last resort, dump the bonds at the auction.
6. Interest rates soar.
7. Housing tanks.

YOU HAVE BEEN WARNED.

#housing