Professor Bernacke’s Studies

It was pathetic to watch CNBC yesterday afternoon for the FOMC announcement and see a bunch of men (especially crazy Cramer) whining that “Uncle Ben” didn’t do what they wanted him to do.

From the moment President Bush appointed him to replace Alan Greenspan, I have referred to Chairman Bernacke as “The Professor”. Bernacke (born December 13, 1953 in Augusta, GA*) has the Sun (self-identity), Mercury (mind), and Venus (financial values) in Sagittarius which rules academia and foreign affairs. His Sun opposes Jupiter (planet ruling Sagittarius) in Gemini, and trines Pluto in Leo. What this means is:

Bernacke views the current market conditions as an unfolding academic study. I believe that the Fed would like to see the mortgage market evolve back to the traditional conventional/20% down model that existed before the boom. The Fed would be willing to incur home prices to adjust to the money available under this scenario. Bernacke truly understands what level of risk global participants are willing to accept in our mortgage market.

Jupiter is the planet of expansion and excess (it inflates). Bernacke knows that inflation is currently far greater than he is acknowledging. Saturn will enter Virgo on September 2. The last time Saturn transited this sign was from late 1977 to September 1980. Slowing growth and high inflation (stagflation) forced then Chairman Paul Volker to substantially raise rates.

It is not the function of the FOMC to bail out the world’s mortgage investors. Homeowners are not screaming like the Street because they don’t have any skin in the game if foreclosed upon. Therefore, the FOMC’s current stance is accommodative by not raising rates.

1 comment:

Anonymous said...

BernaNke