The Solar Eclipse and The Stock Market This Week: January 26 – January 30, 2009

(Stocks mentioned: DOW, PFE, ROH, WYE)

The January 26 Solar Eclipse in Aquarius combined with Mercury retrograde stirs up a lot of choppiness this week resulting from conflicting economic indicators. The Solar Eclipse (a supercharged New Moon) is bringing a bit of buying back to the market which is likely to be short lived. Aquarius and its planetary ruler Uranus tend to create volatility and unexpected price moves (in either direction) as Aquarius/Uranus likes to break through barriers and support levels.

FOMC Meeting:
The Federal Reserve Open Market Committee begins a two day meeting today culminating with a statement at 2:15 PM Wednesday, January 28. With interest rates at 0%, Bernanke has backed himself into a corner. Planetary transits to the Fed’s chart tomorrow indicate strong potential the Fed will announce it will implement what it stated it was evaluating in December: start buying Treasury bonds in a last ditch effort to lower mortgage rates.

Venus/Uranus and the Dow and Pfizer Deals:
Pisces rules drugs and chemicals, and as Venus conjoined Uranus in Pisces the evening of January 22, The Wall Street Journal broke the story that Pfizer (PFE) was in talks to buy rival Wyeth (WYE). The following day the FTC approved Dow Chemical’s (DOW) acquisition of Rohm & Haas (ROH).

With Uranus ruling the Aquarius Solar Eclipse, Pfizer announced yesterday they would buy Wyeth for $68 billion in cash and stock. Rohm & Haas filed a lawsuit in Delaware court yesterday after Dow CEO Andrew Liveris told R&H Dow wants to delay the deal until June (as Liveris still refused to commit even if granted the delay). With the Moon in Pisces Wednesday and Thursday and conjoining Uranus and Saturn in the late afternoon, more information could surface about these deals. It is unlikely either deal will be consummated in its current form.

Since the Aquarius Solar Eclipse occurs while Mercury is retrograde in Saturn-ruled Capricorn and with Saturn and Uranus in opposition, this is the time to develop new and innovative ways to tackle old issues. Jupiter in Aquarius conjoining the eclipse provides the courage and confidence to live your own truth.

No disclosures.

Mercury Retrograde: President Obama Retakes The Oath of Office

This post is in response to emails asking me if the date and time that President Obama retook the Oath of Office represents the planetary energies of the Obama Administration instead of Inauguration Day at Noon.

When Mercury is retrograde* (January 11 – February 1, 2009), communication errors and mistakes in speech tend to be more pronounced. Because their profession is Mercury ruled, news anchors are particularly prone to mispronouncing words and flubbing up their lines when Mercury is retrograde. The energies of Mercury retrograde will also tend to be more pronounced if Mercury turns retrograde on a planet or important point in a person or entity’s chart. And that’s exactly what happened to John Roberts as Mercury stationed retrograde on his natal Sun in Aquarius, affecting his communications while performing his duties as Chief Justice of the United States. Mercury retrograde in Aquarius created a lot of nervous energy, as Aquarius is known for deviating from standard operating procedure, affecting even a superior communicator like Barack Obama.

President Obama recited the words of the Oath of Office but did so out of order. The last paragraph of ARTICLE II. SECTION I. of the The Constitution of the United States of America reads:

“Before he enter on the Execution of his Office, he shall take the following Oath or Affirmation: - ‘I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States.’”

As I have written, Mercury retrograde periods are times to put the re prefix in front of everything you do. This is because the energy of Mercury retrograde is more attuned to dealing with issues that already exist on some level. Mercury retrograde is a time for review and repeating what was not done correctly the first time.

So on Wednesday, January 21, 2009 at 7:35 PM, Chief Justice Roberts re-administered the Oath of Office to President Obama. The energies of Mercury retrograde are more attuned to slowing down than moving at warp speed, since slowing down allows us to be more consciously aware of our thoughts and actions – and get it right. Whether or not the President is aware Mercury is retrograde, The New York Times reported that when Chief Justice Roberts asked him if he was ready to take the oath, President Obama appropriately replied: “I am. And we’re going to do it very slowly.”

As to when Barack Obama officially became President Obama, AMENDMENT XX SECTION I. of The Constitution (see link above) states:

“The terms of the President and Vice President shall end at noon on the 20th day of January, and the terms of Senators and Representatives at noon on the 3d day of January, of the years in which such terms would have ended if this article had not been ratified; and the terms of their successors shall then begin.”

The 20th Amendment (ratified January 23, 1933) took effect beginning with the second inauguration of President Roosevelt in 1937.** Barack Obama was officially the President almost six minutes before he actually took the Oath of Office the first time. President Obama had already signed two executive orders and issued four memoranda and a presidential proclamation before retaking the Oath Wednesday evening.

The President’s retaking of the Oath of Office represents an event that took place for the purpose of rightfully squashing petty chatter seeking to question whether Obama is legitimately the President for failing to recite the Oath of Office exactly as written in the Constitution. Early that day Mercury had moved back into Capricorn, increasing the concern to adhere to formalities and ensure that President Obama’s authority could not be questioned. The Moon in Sagittarius reinforces it was a ceremony conducted for legal purposes as Sagittarius rules the judicial system. Obviously a reporter would have to ask the President to know for sure, but my sense is that if the redo ceremony held special significance for President Obama, the First Lady and his daughters would have been present.

The bottom line is that January 20, 2009 at Noon in Washington, DC represents the planetary energies President Obama will be working with or against, depending on what he chooses to do. Exploring these potentials will have to be the subject of a separate post.

*Planets do not really move backwards but appear to from Earth’s vantage point.
**Prior to this time, Presidential inaugurations occurred on March 4.
John Glover Roberts Jr.: January 27, 1955 time unknown Buffalo, NY

Larry Summers Lack of “Intrinsic Aptitude” For A Coherent Economic Agenda

President Obama said on January 8 that “We start 2009 in the midst of a crisis unlike any we have seen in our lifetime.” Yet as dire as things are, the President still lacks an economic plan. So while Treasury Secretary Nominee Timothy Geithner appeared confounded before the Senate Finance Committee as to any path forward, the President was praying in the National Cathedral for a way out of the credit crisis. Apparently National Economic Council Director Larry Summers has not answered the President’s prayers yet.

With his Moon in Gemini harmonizing his Mercury and Jupiter, our Blackberry toting multitasking President did not want to waste any time while he was waiting to plan his way out of the economic crisis. Jupiter rules ethics, and with the Moon in Jupiter-ruled Sagittarius, President Obama assured us that he is creating a strong framework for ethical behavior. At the same time the President was signing executive orders on the matter, Geithner was getting grilled about failing to pay taxes he admitted he knew he owed but was “careless” about. When asked for his ideas about how the new administration should handle the TARP or about Obama’s mammoth stimulus package, Geithner referred to “the two detailed letters Larry Summers sent to Congress.”

If Larry Summers is the designated man with the plan and is not known to have any tax troubles, why isn’t he the nominee to be Treasury Secretary? With Mercury retrograde at the start of the Obama Administration, it would be quite apropos for Summers to reprise his role as Treasury Secretary. However, Obama and his advisors know that Summers has become too controversial since his days as Geithner’s boss and President Clinton’s Treasury Secretary to pass a Senate vote. Rumor has it that Summers covets Ben Bernanke’s job once he manages to rehabilitate his boorish behavior.

With his Sun (self-identity) in the global sign of Sagittarius, Larry Summers served as Chief Economist of the World Bank from 1991-1993. Sagittarius is ruled by Jupiter, and Summers was born with Jupiter conjoining Uranus, bestowing a potential predisposition to radical ideologies that can be ahead of their time. Four years before the Pluto in Sagittarius era of globalization (1995-2008) began, Summers had already tapped into its energies by advocating the outsourcing of heavily polluting industries to countries with the lowest level of development and lowest wages. In a December 12, 1991 memo, Summers writes: “I've always thought that under-populated countries in Africa are vastly UNDER-polluted.”

At the Treasury Department, Summers continued his focus on world affairs. He played a key role in the 1995 US bailout of Mexico, and was instrumental in China joining the WTO. When his boss and mentor, Robert Rubin resigned as Treasury Secretary to take an advisory role at Citigroup, Summers served as Treasury Secretary to President Clinton from July 1999 until the end of Clinton’s term. A February 15, 1999 TIME Magazine cover called Summers, Rubin, and Alan Greenspan “The Committee To Save The World.” What’s most amusing is the subtitle: “the inside story of how the Three Marketeers have prevented a global economic meltdown – so far.” The Three Marketeers convinced Congress and President Clinton to pass the Commodity Futures Modernization Act of 2000. The Act’s purpose was to:

• Protect credit derivatives from being regulated by the CFTC or SEC.
• Protect financial institutions from “overregulation.”
• Position the US financial services industry to be world leaders in the new century.

The Sun represents financial speculation, and Pluto represents debt and private and unregulated financial transactions such as credit default swaps. One month before Bear Stearns became the first carcass of the credit crisis, transiting Pluto in Capricorn conjoined the Act chart’s natal Sun. Lehman Brothers collapsed on the September 15, 2008 Full Moon as transiting Saturn in Virgo challenged the Act’s Pluto in Sagittarius, reflecting severe financial contraction due to a lack of government (Saturn) accountability (Virgo). True to the nature of Sagittarius, the fallout from Lehman’s bankruptcy (Pluto) triggered a global financial contagion.

Jupiter also rules higher education, and Summers became president of Harvard University after leaving the Treasury. With his Mercury challenging Mars, Summers has a propensity for impulsively saying things he might come to regret later. In 2006 Summers resigned as Harvard’s president after giving a speech where he said that women have less of an “intrinsic aptitude” than men for math and science. Just as he claimed he was doing with the World Bank memo, Summers said his remark was “meant to be provocative.” But coming from the president of a university who is supposed to be promoting education is very strange indeed. And despite having two daughters, President Obama is obviously not fazed by the remark. But with Summers' Mars exactly conjoining the USA’s Moon, certainly enough women were angry enough to force his resignation and would be ready to protest if he was nominated to a position in the Obama administration requiring Senate confirmation.

With natal Jupiter retrograde, Summers remained at Harvard as an economics professor, returning to a job he first held in 1983 after receiving a PhD from the university. Summers also worked as a managing director at hedge fund D.E. Shaw Group, coming into the office once a week to offer economic advice. Summers also began writing periodic opinion pieces for the Financial Times.

Larry Summers now operates out of the White House as Director of the President’s National Economic Council (NEC), a position President Clinton created by executive order on January 25, 1993 for Robert Rubin. The NEC Director serves as the President’s closest economic advisor and is responsible for coordinating economic policy between federal agencies.

Wall Street wanted Summers to play the lead economic role in the Obama administration, and is now starting to regret what it wished for. The mixed messages in his ambiguous letters to Congress last week created renewed turmoil in the financial sector over fears of creeping government nationalization of the financial industry. On the one hand, Summers seeks to wipe out at least the common equity holders of financial companies receiving government assistance by reducing dividends to a penny. Yet at the same time he wants private investment to buy out the government’s investment as soon as possible. As much as it is politically popular to “punish the shareholders,” common equity is the only true form of capital in the banking system. Preferred and deferrable debt is a form of hybrid capital that can never substitute fully for common equity. The government is sending out conflicting messages to banks to both increase their lending and at the same time, maintaining higher capital ratios.

With his progressed* Sun conjoining the NEC’s Sun and Mercury and his natal Mercury conjoining the NEC’s Pluto, Larry Summers will be the real economic powerhouse of the Administration, not Timothy Geithner. With his Jupiter/Uranus alignment challenging natal Neptune in Libra, Larry Summers is still working on a government spending plan of gargantuan proportions that will end up creating a lot of roads and bridges existing only in our collective minds. When Summers finally does release his plan, we’re going to see that he’s the one who lacks an “intrinsic aptitude” for math. The plan will be confusing and difficult to truly understand, as the new Administration’s call for transparency will not shine any light on its opaque economic plans.

*A predictive method that mathematically calculates the planets forward in time.

Lawrence Summers: November 30, 1954 time unknown New Haven, CT
Commodity Futures Modernization Act of 2000: December 21, 2000

Weekly Forecast: January 19 – 25, 2009

Summary Of This Week’s Influences/All Times Listed Are Eastern Standard Time (EST)

• General Influences: Planetary alignments involving the Sun (self-identity), Mercury retrograde (re-envisioning), Venus (compassion, relationships), and Mars (physical energy) this week offer the opportunity to focus on personal goals and responsibilities.
  
  The Sun moves into Aquarius Monday. From now until February 18 people tend to identify more with humanitarian and progressive causes. The desire for independent expression is strong. The Sun conjoining Mercury retrograde Tuesday emphasizes inventive thinking that provides new solutions to old problems. Personal expectations and optimism run high as the Sun conjoins Jupiter in Aquarius Friday/Saturday. The energies of Venus opposing Saturn Saturday can help to stay within budget.
• Stockmarket: As mentioned in the Capricorn New Moon cycle post, Mercury retrograde has brought the return of issues related to the Treasury’s creation of the TARP. Last Monday President Bush requested the release of the remaining $350 billion on behalf of President-Elect Obama, which the Senate approved on Thursday. And now one of the proposals the Obama administration is considering is a return to the TARP’s intended purpose of the government buying up billions of troubled assets held by financial institutions.
  
  The Treasury finalized the terms of its November 23, 2008 rescue package for Citigroup (C) Friday, as Citi announced it is restructuring the banking behemoth into two entities. Citigroup will hold the good stuff, and Citi Holdings will contain what’s for sale/waiting for the next turnaround (management seems to be extremely patient). I had written that the December 12, 2008 Full Moon would probably bring back financial issues relating to the September 15, 2008 Full Moon when Lehman collapsed. At the time, markets were focused on an automaker bailout. Mercury retrograde tends to bring out issues from the past, and Bank of America revealed Friday that it had approached the government in mid-December about breaking its deal to buy Merrill Lynch. CEO Ken Lewis and the Treasury kept it a secret for a month that the government was taking an additional stake in Bank of America to force the acquisition.
  
  Speaking of the Big Three, the Treasury Friday extended $1.5 billion in five year loans so private equity Chrysler Financial can offer auto loans with 0% financing for up to 60 months for buyers with credit scores as low as 620. Chrysler Financial lobbied for TARP, telling Treasury it wasn’t fair that the government gave $6 billion to GMAC, GM’s lending arm. Now the Treasury has confirmed it’s talking with Ford Motor Credit who has also sought aid. For all the talk about the need to save energy and build fuel efficient vehicles, the government is in essence subsidizing the sale of Detroit’s gas guzzling SUVs and large trucks.
  
  As reflected by the approaching planetary lineup of the Sun/Mercury retrograde/Jupiter, Obama and the Democrats unveiled their ever expanding pushing towards $1 trillion economic stimulus package that if you look at the pie chart, shows that the bulk of the money will be spent saving government jobs and pumping up state and local governments as political payback. As I’ve written, the stimulus reverses the call for change back to the status quo.
  
  In last week’s Forecast I thought there might be weekend dealmaking taking place January 17/18. This view was shared in the January 15 Short View column/video by the FT’s John Authers. However, I had envisioned the action taking place on this side of the pond.
  
  This Week markets appear to be pushing to exhibit a positive trend bias. However, between the vacillation of Mercury retrograde along with the push/pull of Saturn (fear/caution) opposing Uranus (breakouts/unexpected moves), markets could just as easily go on a rollercoaster ride in the opposite direction. Volatility and bigger market moves are likely to increase towards the end of the week.

Monday, January 19, 2009

• General Influences: The Scorpio Moon harmonizing with Venus in Pisces this morning can bring profound emotional understanding in intimate relationships. Favorable aspects between the Moon and Mars later this morning is a good time to work with tools and do minor repairs. Lost/missing items or information might unexpectedly turn up this afternoon. Scorpio Moon becomes VOC* at 10:37 PM until tomorrow afternoon.
• Stockmarket: Closed in observance of Martin Luther King, Jr. Day

Tuesday, January 20, 2009

• General Influences: Barack Obama is inaugurated as the 44th President of the US at Noon. Jovial spirits and optimism abounds when the Moon enters Jupiter-ruled Sagittarius at 12:30 PM and forms favorable aspects to Mercury, the Sun, and Jupiter.
• Stockmarket: Choppy/mixed; positive trend bias.

Wednesday, January 21, 2009

• General Influences: Thoughts tend to be more practical as Mercury is back in Capricorn until February 14. Mercury in Capricorn helps to keep the Moon in Sagittarius’s lofty aspirations realistically achievable.
• Stockmarket: Market strongest in afternoon. Mercury moving back into Capricorn can increase the level of risk aversion and caution. Business ideas/proposals need to be practical and cost effective.

Thursday, January 22, 2009

• General Influences: The Moon challenging Uranus and Saturn early this morning could create travel or schedule disruptions/delays. Sagittarius Moon becomes VOC at 11:24 AM for the rest of the day. A favorable alignment between Mars and Uranus emphasizes innovation and the opportunity to complete the missing component on a prototype idea or invention by getting inspired and building upon previously discounted ideas. People tend to be attracted to what’s new and unique as Venus conjoins Uranus this evening. New romantic relationships could begin; these energies add a spark of excitement to existing ones.
• Stockmarket: Negative trend bias, but could have a brief upside surprise and then turn negative as volatility increases.

Friday, January 23, 2009

• General Influences: The Moon enters Capricorn at 1:18 AM. With the Moon in Saturn’s sign today and Saturday (Saturn’s Day), the high vitality of the Sun conjoining Jupiter, and Mars harmonizing with Saturn, work progresses well.
• Stockmarket: The approaching influence of the Sun conjoining Jupiter is likely to create larger market moves that could create technical breakouts. Although this alignment is a generally bullish energy, occurring in Uranus-ruled Aquarius it can just as easily take an unexpected shock to the downside. Sun/Jupiter represents inflated expectations that can quickly turn to panic and hysteria when reality sets in. And with the Moon in Saturn-ruled Capricorn today and Venus approaching an opposition to Saturn early tomorrow morning, a reality check is just as possible as a bull run.

Weekend: January 24-25, 2009

• Saturday: Venus opposing Saturn could bring friction in an intimate relationship if a partner feels work is consuming all the attention. Venus favorably aspecting Mars can smooth things over as the Moon favorably aspecting Venus this evening offers a time for togetherness.
  Sunday: Capricorn Moon becomes VOC at 4:08 AM. After the Moon enters Aquarius at 1:56 PM, getting together with friends or participating in community or group activities can be particularly enjoyable.

*VOC (Void-of-Course) = When the Moon (our emotional barometer) ceases to have any major interactions with the other planets before entering a new zodiacal sign. This time period is best suited for anything where NO ACTION OR SPECIFIC OUTCOME is desired, as actions taken during the VOC period might not turn out as planned.

Government Forced Bank of America To Marry Merrill Lynch

Bank of America (BAC) chief executive Ken Lewis had coveted Merrill Lynch for quite some time. So when Merrill CEO John Thain contacted Lewis to ask if his bank was interested in buying Merrill, Lewis jumped at the chance.

John Thain sensed that Lehman Brothers was about to fall, and if he didn’t act quickly, Merrill would be next. On the September 15, 2008 Full Moon, Lehman filed for bankruptcy and Bank of America announced it was acquiring Merrill Lynch. Despite the financial tsunami that immediately ensued worldwide, Lewis proudly announced Bank of America would acquire Merrill in an all stock deal valued at $50 billion, or $29 a share. Indeed, during the conference call to announce the deal, Lewis bragged that no government assistance was required to consummate the marriage.

We now know that Lewis spoke too soon. It seems Lewis was so besotted with his corporate fiancé that he was willing to overlook not only how rapidly the financial system had deteriorated, but also the manure piling up from the “thundering herd” in losses emanating from commercial real estate bonds and asset-backed securities. On December 5, one day after American Banker named Lewis “Banker of the Year,” Bank of America and Merrill Lynch shareholders approved the marriage now valued at $16.5 billion. Three days later John Thain was preparing to ask Merrill’s Board to give him a $10 million wedding bonus that was said to have infuriated Ken Lewis.

By mid-December Ken Lewis was ready to call off the wedding, telephoning Fed Chairman Bernanke of his intention. At 6:00 PM on December 17, Lewis met with Bernanke and Treasury Secretary Paulson who told him Bank of America had to consummate the marriage. Lewis told them he would invoke a “material adverse change” clause in the contract to cancel the deal based on his newfound financial knowledge. Bernanke and Paulson responded that doing so would reflect not only the bank’s lack of due diligence in acquiring Merrill, but Bank of America’s inability to meet its commitment. They said that Bank of America’s failure to consummate the deal would cause further systemic risk to an already fragile financial system. Bernanke and Paulson assured Lewis that if Merrill’s fourth quarter numbers were as bad as Lewis believed, the Treasury would provide a rescue package similar to what Citigroup got in November.

Ken Lewis and John Thain kept quiet, and on January 1, 2009, Bank of America married Merrill Lynch. As word leaked out that Bank of America had gotten a second helping of TARP from the government, Bank of America hastily rescheduled its fourth quarter 2008 earnings call to 7:00 AM January 16. The Treasury with the approval of the Obama administration injected an additional $20 billion into Bank of America in exchange for preferred shares paying an 8% dividend. The Treasury, the Federal Reserve, and the FDIC agreed to backstop up to $118 billion in “selected capital markets exposure” (75% of which is Merrill’s) for an additional $4 billion preferred stock plus warrants. And in a new twist coming from the playbook of Obama National Economic Council Director-Designate Larry Summers, Bank of America was forced to shave its 32 cents per quarter common dividend down to a penny. Bank of America had a fourth quarter loss of $1.79 billion. (For FY08, Bank of America had a $4.01 billion profit.) Merrill’s fourth quarter loss was $15.31 billion.

No doubt the next phase of the saga will be shareholder lawsuits as lawyers try to determine what did Ken Lewis know about Merrill and when did he know it? Since the weekend of the Merrill deal, Lewis has been experiencing transits affecting his natal Mercury (thoughts/communications/contracts). Ken Lewis was born with his Mercury conjoining Mars and challenging Uranus. This gives Lewis the tendency to enter into agreements too hastily without concern for the facts. And with his Sun (self-identity) in Mars-ruled Aries, Lewis has demonstrated a penchant for grabbing up all things financial.

In November transiting Saturn began opposing Lewis’ natal Mercury, becoming exact on the day of the shareholder vote. It was probably around this time that Lewis faced up to reality that Merrill was not the great deal he thought it would be and wanted to severe the relationship. Issues tend to reach a crisis point around the time of the Full Moon. With the December 12, 2008 Full Moon challenging Lewis’ Mercury and reactivating the energies of the September 15 Full Moon, Lewis was no doubt ready to call the deal off or at least wanted to acquire Merrill for a much lower price. The Sun and Mars in Sagittarius challenged Lewis’s Mercury and Mars the day he met with Bernanke and Paulson. In what was probably a very heated discussion, Lewis likely got his ego pushed down a few notches. And now with Mars in Capricorn challenging his Sun, it’s not just the shareholders who are angry that the value of their investment has been severely diluted. Just last week Bank of America employees received shares worth $14.33 apiece as compensation; yesterday the stock closed at $7.18.

Transits from Saturn and Uranus will continue to affect Lewis’ natal Mercury/Uranus, as well as his progressed* Sun in February and March. Additionally, Jupiter opposing natal Pluto probably relates to the start of legal challenges about keeping the government’s involvement secret. The March 10, 2009 Full Moon in Virgo is likely to once again invoke the energies surrounding September 15, 2008, affecting not just Bank of America, but the overall financial system. Ken Lewis will be 62 on April 9, raising the possibility that Bank of America’s Board of Directors might allow him to announce his retirement rather than be fired.

Regardless of whether Ken Lewis and John Thain remain at Bank of America, questions should be raised concerning the government’s insistence that the deal be consummated under its original terms. The opaque transformation from insisting that Bear Stearns common shareholders be punished to salvaging Merrill Lynch’s common shareholders to outright giving away the store to the private equity holders of Chrysler Financial is astonishing. There is still no consistency as to who lives and who dies, who is merely tortured and who is rewarded with mercy. Bank of America won’t be a “bank of opportunity” for shareholders until they buy their way out. But just like the Mafia and the roach motel, once you get it’s nearly impossible to get out. Uncle Sam still needs Bank of America to carry out its social policies.

*A mathematical calculation that moves the planets forward in time as a method of prediction.

No disclosures.

Sources:
New York Times: “For Bank of America, the Pressure Mounts Over Merrill Deal”
Wall Street Journal: “BoA’s Latest Hit”, “Bank of America Goes On Offense”, “Mugging Bank of America”

Timothy Geithner’s Taxing Time To Be Treasury Secretary

There’s going to be an unfamiliar face controlling the nation’s money on January 20. Stuart Levey, the Treasury undersecretary for terrorism and financial intelligence will be filling in as Treasury Secretary until a successor to Hank Paulson has been confirmed by the Senate. For the second time this week, the Senate Finance Committee’s confirmation hearing for Timothy Geithner, President-Elect Obama’s nominee for Treasury Secretary and the former president of the Federal Reserve Bank of New York, has been rescheduled for January 21 at 10:00 AM.

The Treasury Secretary oversees the Internal Revenue Service, and some politicians began to grumble after news reports surfaced that Geithner had failed to pay Social Security and Medicare taxes on his income from 2001 to 2004 when he worked for the International Monetary Fund (IMF). Geithner admits he received IMF instruction and literature, and signed an annual tax allowance request worksheet to the IMF acknowledging he was responsible for paying the taxes. Geithner paid back taxes with interest on his 2003 and 2004 tax returns after being audited by the IRS in 2006. Despite the fact he did not pay taxes on his 2001 and 2002 returns, Geithner did not pay the IRS for the back taxes and interest until President-Elect Obama nominated him to be Treasury Secretary. Other tax errors on returns brought Geithner’s back tax tab to over $34,000 which he has paid. These include taking a dependent care tax deduction while his child was at overnight camps, an improper small business deduction, a charitable contribution for ineligible items, and the expensing of utility costs for personal use.

It never ceases to amaze me that people who have chosen to make their career in public service seem to have ethical issues that pose a potential or actual derailment of their career over taxes and/or household help. Although questions were raised earlier in the week about a housekeeper working in the Geithner home whose green card expired during her employment there, the issue appears to be a moot point and the woman is now a legal US resident.

Geithner’s nomination raises three key issues: credibility, the insanity of the tax code, and most importantly, his role in allowing Lehman Brothers to collapse.

Geithner’s tax tale strains his credibility to do his job. If confirmed, he will oversee the IRS, making sure the agency enforces the rules of the tax code - rules that he himself chose to conveniently overlook. It also strains the credibility of President-Elect Obama who set the ethical bar high during the campaign. Supporters say Geithner is too important to worry about such indiscretions.

For people who are not concerned about the credibility issue, consider the bigger picture Geithner’s situation raises. Thousands of people each year file their tax return after making every effort to ensure they completed the return accurately and honestly, whether prepared by themselves or by their accountant. The tax code is so complex and unwieldy that I guarantee if you had 10 accountants prepare the same individual’s return you would get multiple variations. And why should an individual have to pay for books, software or an accountant to prepare it in the first place?! Democrat or Republican, every year the tax code grows bigger as politicians use it to shape social policy, or more cynically to pay off political debts. The complexity of the tax code primarily benefits those at the highest income levels. A flat tax with no itemization except for a high standard deduction would make it hard to cheat or make a mistake. If Republicans love President Reagan as much as they profess to, they would seize on Geithner’s situation as an example of why the nation needs kill the tax code once and for all.

Far more troubling than Geithner’s taxing situation is his role at the center of the financial crisis, specifically what role he had in the fateful decision to let Lehman go under which triggered a financial tsunami worldwide. The Senate Finance Committee needs to specifically grill Geithner on every detail that took place September 12-15, 2008. After all it was Geithner who had corralled the top bank CEOs in the basement of the New York Fed that weekend.

The Senators should ask Geithner:
What made Merrill Lynch (BAC) worth saving and not Lehman?

Why wasn’t the Fed willing to temporarily backstop Lehman while Barclays (BCS) got UK regulatory and shareholder approval to buy Lehman?

Why did the Fed lend a total of $138 billion to LBI New York, Lehman’s broker-dealer business that was not part of Lehman’s bankruptcy filing? (Fed apologists claim the loan was made as part of “an orderly wind down” of Lehman and was not the same as lending to “an ongoing concern.” Barclays paid the Fed back after the bankruptcy judge approved the sale of the unit to Barclays.)

Most importantly, Geithner should explain to us the cost of imposing moral hazard. What was the penalty for scaring investors away from purchasing the common stock of any financial company? Geithner should explain how the scenario would have played out differently if instead of punishing shareholders, shareholders were rewarded for making additional investments into financial companies’ common stock. Would we have been better off taking a less ideological approach to the financial crisis?

And finally, the Senators should ask Geithner if he would act any differently under the Obama administration than he acted under the umbrella of the current administration.

No disclosures.

Citigroup: Vikram Pandit’s Birthday Wake Up Call

Today is Vikram Pandit’s birthday. Whether the Citigroup (C) chief executive is consciously aware of it, the cycle of Mercury retrograde (January 11 – February 1, 2009) is an appropriate time for the banking behemoth to reverse its stance by divesting many of the components of the financial supermarket model established by former CEO Sandy Weill. The three week periods three to four times a year when the planetary energy of communication is retrograde offer an opportunity to rethink past actions and viewpoints and initiate a revised course of action once Mercury moves forward.* Pandit has the potential to do his best thinking regarding how to handle legacy business issues when Mercury is retrograde since Pandit was born with Mercury retrograde in Capricorn.

In “Rubin Pries Open The TARP For Citigroup,” I wrote: “Transiting Pluto in Capricorn will conjoin his natal Venus in Capricorn and challenge natal Jupiter in Libra throughout most of 2009. Pandit should be obsessively focused on selling assets, eliminating excess waste, taking more writedowns, and modifying mortgages where feasible beyond the FDIC’s procedures required in the government’s arrangement.” And now with Pluto making its first exact challenge to Pandit’s Jupiter in Libra, Pandit has reversed his stance and agreed to merge (Pluto) its standalone Smith Barney offices into a joint venture (Jupiter in Libra) with Morgan Stanley’s (MS) retail wealth management business. Morgan Stanley will pay Citi an additional $2.7 billion cash to obtain a 51% stake in the joint venture which will be known as Morgan Stanley Smith Barney.

Capricorn is a cautious and conservative energy, and the cycle of Pluto in Capricorn (2008-2024) represents a cycle of economic contraction. Pluto represents debt, lending, taxes, and toxic conditions, and Capricorn represents the government. Citigroup received $45 billion from the TARP, and the government could potentially have to backstop up to $249 billion in losses from Citi’s real estate portfolio. The government has been increasing the pressure on Citi to downsize. Pluto challenging Pandit’s Jupiter represents Citigroup’s plan as reported in today’s Financial Times, to place toxic assets that make up one third of its balance sheet into a separate non-core or “bad bank” unit that would be reported separately from its global commercial banking operations. Over time the components in the non-core unit would be sold or the whole unit spun off as economic conditions improve.

Pandit should have learned that Mercury retrograde periods are not the time to start something new. During the previous Mercury retrograde cycle, Pandit tried to acquire Wachovia with the help of the FDIC, but was usurped by Wells Fargo’s (WFC) more generous terms. Mercury turned retrograde January 11 opposite Pandit’s natal Uranus in Leo, serving as an urgent wake up call to remind him that his purpose as CEO of Citi is to break up (Uranus) Citi’s failing financial conglomerate. Today’s appropriately titled Wall Street Journal editorial, “Breaking Up the Citi” describes these energies in greater detail. Reflecting Pluto’s transit to Pandit’s Jupiter, and the opposition of Saturn in Virgo and Uranus in Pisces impacting Citi’s stock chart Jupiter in Pisces, the Journal writes: “A bank that consistently has to be rescued by taxpayers(Pluto in Capricorn) lest it take down the entire financial system is too big to succeed (Jupiter). The only way to protect taxpayers is to reduce the size and scope (Saturn) of the bank so that it no longer poses a systemic risk. The planned asset sales reported yesterday are a step in the right direction. Citibank was born as a financial roll-up of sorts, and there's nothing wrong in principle with growth by acquisition. But Citi's repeated brushes with death (Pluto)** prove that its management has never figured out how to run the business.”

With his Sun, Mercury, and Venus in Capricorn, and his Sun and Mercury challenging Mars in Aries, Pandit has the planetary potential for this enormously tough task. Capricorn rules time. Pandit wasted time by not selling assets as soon as he became CEO in December 2007 when market conditions were much better. For Pandit, every second counts as the chorus of doubters in his ability to lead Citi is growing. Solar eclipses can bring changes in leadership, and the January 26 Aquarius Solar Eclipse opposes Pandit’s natal Uranus in Leo. Citi has rescheduled its fourth quarter earnings call for Friday, January 16. Mars in Capricorn will conjoin Pandit’s Mercury then. Pandit should be prepared for some very aggressive questioning by analysts during the Q&A session. Without presenting a sustainable path forward, Pandit will have no more opportunities to instill confidence in Citigroup.

No disclosures.

*Planets do not really move backwards, but appear to from Earth’s vantage point.
**( ) are my inserts.

Vikram S. Pandit: January 14, 1957 time unknown Nagpur, India
Citigroup: October 8, 1998

Toxic Fallout From The Homebuilding Boom

Evidence is beginning to surface that the toxic fallout from the homebuilding boom is extending beyond the financial crisis. Beneath the glitzy exteriors, some builders were cutting corners in their haste to sell as many homes as quickly as possible. Today’s Wall Street Journal reports that Chinese drywall used by some builders is creating toxic conditions in some Florida homes, corroding copper wiring and emitting odors that are creating health problems for their occupants.

Pluto is the planetary energy relating to toxic conditions. Pluto also rules debt and lending. The era of Pluto in Sagittarius (1995-2008) witnessed a major homebuilding boom, fueled by inexpensive debt and lax lending standards. True to the expansive nature of Sagittarius, homes grew ever larger and were built on land further away from cities and their surrounding suburbs in what became known as the “exburbs.” Buyers didn’t examine or question how well the homes were constructed because in a rapidly rising property market most never intended to occupy the homes. Pluto in Sagittarius ushered in the era of globalization as Sagittarius rules anything foreign. Even if disclosed by builders it is doubtful that many buyers of new construction during the boom would have objected that the homes they purchased were built by illegal immigrants and constructed with substandard and potentially toxic foreign materials. As long as the home had all the glitzy touches as seen on TV, it didn’t much matter what lied beneath the surface.

Now the cycle of Pluto in Capricorn (2008-2024) is bringing to light what was neglected during the instant gratification cycle of Pluto in Sagittarius, as Capricorn and its planetary ruler Saturn represent a home’s foundation and structure. Capricorn and Saturn represent contraction and tight economic conditions. Virgo and Pisces energies relate to health, specifically the body’s immune and respiratory systems. The opposition of Saturn in Virgo and Uranus in Pisces (2008-2010) is working in concert with Pluto in Capricorn to expose the health risks (Virgo) that the levels of sulfur-based gases (Pisces) are emitting from the Chinese drywall. Saturn and Capricorn rule cold conditions, and Uranus in Pisces relates to breakdowns and electrical malfunctions (Uranus) that are hard to determine (Pisces). Homes with Chinese drywall were experiencing frequent air conditioning breakdowns and other electrical problems as the gases emitted from the drywall corroded the home’s copper wiring.

Besides exposing the house hazards, these planetary energies emphasize the cleanup required for these homes and the economy. Saturn and Capricorn rule the government, and the Florida Health Department has not yet determined whether the Chinese drywall is “a causal or coincidental association.” Since the homebuilding industry is a major component of Florida’s economy, the department is probably dragging its feet in reaching a conclusion. According to the Journal, Lennar (LEN) “has tested the air quality in at least 50 houses and has relocated several homeowners in order to rip out the drywall.” Even if Lennar or any other homebuilder who used substandard materials and labor is willing to correct the defect, the homeowner will still have to disclose it in order to sell the home.

Owners of homes constructed during the boom years should understand that beyond the financial risk of a depreciating asset lies construction risk. It is doubtful that Chinese drywall in some homes mostly built by Lennar in Florida will be the only toxic fallout from the building boom. Homebuilders need to understand that the planetary cycle trends emphasize much smaller size homes constructed by skilled contractors using quality and energy efficient materials that are able to maintain the home’s structural integrity through the most severe weather conditions. Gone are the days when builders could sell homes starting at $500,000 constructed on top of a landfill. Only land that is convenient to work, shopping, leisure activities, and public transportation will be worth developing. Since Pluto represents transformation and Capricorn represents what is old, many builders will likely have to buy and gut or tear down sections of neighborhoods to meet the old “location, location, location” mantra that’s back in vogue. Homeowners can redecorate and remodel, but fixing structural defects or moving a home’s location is just about impossible.

No disclosure.

Weekly Forecast: January 12 – 18, 2009

Summary Of This Week’s Influences/All Times Listed Are Eastern Standard Time (EST)

• General Influences: With Mercury retrograde and the Moon VOC* during half of the business day Tuesday and most of the day Thursday, there’s plenty of time for review and catching up on routine matters. Saturday’s Last Quarter Moon in Libra emphasizes spending time with someone special. Mercury retrograde conjoins Jupiter in Aquarius Sunday creating a giant gabfest of ideas and revelations.
• Stockmarket: Mercury retrograde until February 1 tends to create choppy and unpredictable conditions resulting from conflicting and confusing economic indicators and information emanating from Wall Street and Washington. Mercury retrograde is a good time to review investment objectives, positions and price targets. Be more vigilant about checking your brokerage accounts, open orders, and double check you’ve entered the correct information before placing a trade.
  
  The combination of energies of Mercury retrograde, Saturday’s Last Quarter Moon in Libra, and Sunday’s Mercury/Jupiter alignment with the Moon in Scorpio raises the possibility for the return of weekend dealmaking “before Asia opens” Sunday night. (The US stock market will be closed on January 19.)

Monday, January 12, 2009

• General Influences: Everyone wants to be the center of attention with the Moon in Leo today! It’s time to get the creative juices flowing and share your warmth and wit with others.
• Stockmarket: Choppy/mixed to positive bias.

Tuesday, January 13, 2009

• General Influences: Leo Moon becomes VOC at 1:39 AM for the next 12 hours. It’s time to get some serious work done when the Moon enters Virgo at 1:33 PM. Since Virgo is ruled by Mercury, Mercury retrograde snafus could be more pronounced from now until late Thursday afternoon. However, the Virgo Moon is a good time for review as Virgo’s critical eye could spot previously unseen errors and omissions. The Moon harmonizing with Pluto in Capricorn this afternoon favors research and uncovering missing information.
• Stockmarket: Choppy/mixed to negative trend bias.

Wednesday, January 14, 2009

• General Influences: The Moon opposite Venus in Pisces this morning could create tensions in relationships as people could be overly sensitive. Energy abounds during the late morning to early afternoon hours as the Moon harmonizes with Mars in Capricorn. This is a great time to hold a meeting to get the staff enthusiastically fired up and eager to roll up their sleeves and get to work! Sales professionals and job seekers might want to make some cold calls – particularly to people/companies who weren’t previously interested. The Moon/Mars influence is also a good time to get some exercise or accomplish physical work. Going to bed early can escape a potential late night upset, and make it easier to get an early start tomorrow morning.
• Stockmarket: Negative; improving conditions in afternoon.

Thursday, January 15, 2009

• General Influences: Before the Virgo Moon becomes VOC at 9:37 AM is a good time to meet with the boss or influential people. Accomplish anything you need to get done before this time or wait until the Moon enters Libra at 5:30 PM. Under the Libra Moon, people have a stronger emotional need to connect with others. A loved one may feel professional responsibilities are diverting too much of your attention from them. Getting on the same page philosophically can help smooth things over.
• Stockmarket: Negative.

Friday, January 16, 2009

• General Influences: Libra is ruled by Venus, and the Moon in this sign on the day of the week ruled by Venus particularly puts the spotlight on love, beauty, and alliances/partnerships. Socializing is favored this evening. Be calm and cautious later this evening when the Moon challenges Mars as people have a tendency to be more impatient and easily irritated.
• Stockmarket: Swings from negative to choppy/mixed to moderately positive.

Weekend: January 17-18, 2009

• Saturday: The Moon in Libra harmonizing with Neptune in Aquarius this morning favors spending time with loved ones or others who share your ideals. It’s a good time for artistic and creative expression. The Last Quarter Moon occurs at 9:46 PM, putting the focus on fostering balance and harmony in all kinds of relationships. The Moon is now VOC.
• Sunday: The Moon enters Scorpio at 1:20 AM. The Moon challenging Jupiter and Mercury early this morning could create a big change in plans. Mercury conjoins Jupiter today which is likely to create information overload. Internet and travel could be the hot topics of discussion. Since the Moon is in Scorpio, there could be some surprising and shocking secrets revealed in the news. This is the second time Mercury is conjoining Jupiter. (The first time was in Capricorn on December 31 and the final time will be February 23/24.)

*VOC (Void-of-Course) = When the Moon (our emotional barometer) ceases to have any major interactions with the other planets before entering a new zodiacal sign. This time period is best suited for anything where NO ACTION OR SPECIFIC OUTCOME is desired, as actions taken during the VOC period might not turn out as planned.

Mercury Retrograde: Change Reverts To The Status Quo (January 11 – February 1, 2009)

This post is all about Mercury retrograde: what it is, how to make the most of it, and how it could play out in financial markets and the Obama Administration.

Mercury, the planetary energy relating to communication and movement, will be retrograde from January 11 to February 1, 2009. Mercury will not really move backwards, but appear to from Earth’s vantage point. Mercury retrogrades occur for three weeks three to four times a year. Mercury retrograde is not considered a favorable time to start something new, but serves as an opportunity to review situations we’ve overlooked or might not have paid enough attention to. When Mercury is retrograde, it’s time to put the RE prefix before everything you do: reconfirm, rethink, renegotiate, repair, revise, redo, reconnect, reinvent, retry, etc. Many times we’re reexamining issues that relate to the prior Mercury retrograde (September 24 – October 15, 2008).

Mercury retrograde can increase the potential for breakdowns in communications, communication systems and devices. Since Mercury turns retrograde at the time of the Full Moon in Cancer, the retrograde period could highlight things in the home that need attention. Mercury retrogrades in Aquarius from January 11 through January 20. Events that occur around January 11 are likely to take a new direction at the January 26 Solar Eclipse. Friends, groups and reviewing what you really want to achieve are emphasized now. Aquarius rules electricity, electronic devices, computer hardware and software, the internet, and air travel. Have battery backups for electronic devices and keep them fully charged in case the power goes out. Keep extra cash, water, and food on hand that can be prepared without electricity. From January 21 to February 1 Mercury will be retrograde in Capricorn, emphasizing career/professional matters and public reputation. Relationships with parents, elderly, or people in authoritative positions are highlighted now. This part of the cycle particularly emphasizes the backbones of modern life, such as plumbing, appliances, elevators/escalators, ground transportation, and essential government functions.

Here are some suggestions that are relevant year round, but are particularly important during Mercury retrograde:

• Edit yourself before communicating to avoid misunderstandings. Reconfirm all appointments (even the most casual get togethers) and travel arrangements. Mercury retrograde tends to create unsettled weather conditions, so allow extra time to reach your destination.
• Be extra vigilant running security scans, changing passwords, and backing up files. Check online financial accounts more frequently. Print copies of bills, statements, and important documents you’re working on at this time.
• Review your receipt before leaving the store. Review bills and financial statements as soon as you receive them. Mail bills, greeting cards and packages earlier to ensure they arrive on time.
• Carefully review all documents, even if it has been vetted by an attorney or other professional. Do not sign anything you do not understand.

Now that I’ve given you an idea of what to be aware of during this time, here are a few suggestions specifically geared to when Mercury is retrograde:

• January 11 to 20 is a good time to patch things up with a friend or reconnect with a group or social network you were involved with in the past.
• Contact people you were unsuccessful in establishing a business relationship with in the past. Reapply to employers who previously rejected you.
• If you failed a test, restudy and retake it during retrograde. (If you fail for the first time during retrograde, retake it after February 22.)
• Anything that failed to get correctly diagnosed prior to retrograde should be reexamined and retested now.
• Houseclean and get organized! January 13, 14, 18-19, 23-24, 28-29 could be particularly motivating.

Economic/Financial:
As CNBC understands, financial markets tend to be choppy during Mercury retrograde. Trading patterns in place prior to retrograde tend to diverge. Likewise, any pattern that begins during retrograde might not last once Mercury moves forward.

Two trends are likely to bring back volatility and big market moves. Saturn rules Capricorn, representing the market’s doom and gloom fear and pessimism. Uranus (as well as Saturn) rules Aquarius, representing the market’s sharp and sudden price spikes in either extreme that break through technical support levels. This Mercury retrograde cycle is ruled by both planetary energies that are moving toward their second opposition to each other on February 5.

Additionally, Mercury moves retrograde at the time of the Cancer Full Moon which reactivates the previous retrograde cycle (September 24 – October 15, 2008). It was during this time that the TARP was rejected and then approved by Congress. Now Congress will decide how to disperse the second half of the so-called $700 billion bailout.

Days during retrograde that volatility/larger moves are more likely to occur are around January 12, 20, 22-23, 26-27, February 2.

Obama Administration and Mercury retrograde:
President-Elect Obama ran as the candidate promising to bring major change and reform, reflecting the Uranus energy of the Saturn/Uranus opposition cycle that kicked off on Election Day and finishes in mid 2010.

Obama will be sworn in as the 44th President of the US on January 20 at Noon, during Mercury retrograde. Planetary energies can be expressed in different ways, reflecting our free will to choose how we create and react to life’s circumstances. The Sun conjoining Mercury retrograde on Inauguration Day and approaching an alignment with Jupiter in Aquarius, can be represented as the nation’s leader (represented by the Sun) reversing all the waste and damage created over the last couple of decades. These energies could be used for retreating from wars and foreign entanglements (Jupiter); a complete reversal of the USA’s policy of arrogance that only we know what’s best for the rest of the world. The Aquarius energies could be a return to the glory days of space exploration and technologies. A reversal of the Bush administration’s policies against a woman’s right to control her own body. A reversal of “faith-based initiatives” that blur the separation of church and state. A reversal of the failed policy of the “war on drugs."

Mercury retrograde at the inauguration can repair and replace America’s outworn infrastructure of roads, transportation systems, and the electrical grids system. These energies can reverse our dependence on fossil fuels through the development of clean and more efficient energy sources.

Mercury retrograde at the inauguration can manifest universal healthcare in the US as this was originally proposed by President Truman. Instead, Congress “compromised” by creating universal healthcare for seniors (Medicare), the poor (Medicaid), and government sponsored healthcare for themselves.

In short, Mercury retrograde in Aquarius at the inauguration can return the federal government back to policies that benefit the greatest majority of Americans, thus bringing the return of true prosperity. Barack Obama has a choice, and right now it appears he will choose to express the energies of Mercury retrograde by recreating failed policies, returning financial alchemy, and rehiring many of the people who helped get the nation into the mess it’s in the first place! As I have written before, there will be no in-between regarding Obama’s presidency. He will either be a tremendous success or a total failure. The majority of people in America are prepared to move forward for progressive change (Uranus), yet it appears that the President-Elect, the Congress, most economists and Wall Street want to take what they perceive to be the “easy way out” by perpetuating the status quo and business as usual in Washington (Saturn). The more the status quo on Wall Street and Washington resist major reform, the more likely the US will experience civil unrest in 2010-12.

Mercury Retrogrades in 2009:
Here are the dates and energies surrounding the remaining retrogrades this year. I will post more details on each cycle as we get closer to these times. Notice that the retrograde cycles occur during busy holiday travel times (Memorial Day, Labor Day, Christmas/New Year’s).

May 7-30: Mercury retrograde in its “home” sign Gemini until May 13, highlighting neighbors and local environment and telecommunications. Mercury is retrograde in Taurus for the remaining time, highlighting banking and finances. Key Dates: May 9, 16-17, 20, 24-25, 27-29. This cycle emphasizes hype vs. reality and will likely culminate in a turning point in the stock market. What happens now affects the public in a big way.

Sep 7-29: Mercury retrograde begins on Labor Day which could create travel snafus over this busy travel weekend. Mercury retrograde in Libra until Sep 17 focuses on alliances, partnerships, and romantic relationships. Then Mercury moves back into its other “home” sign Virgo, emphasizing matters related to work, health, and daily routine. Many challenging alignments occur during this period, including the third opposition of Saturn and Uranus. The planetary energies at this time relate back to the September 15, 2008 Full Moon. Key Dates: September 11-12, 15-18, 20, 22-23, 26.

Dec 26, 2009 – Jan 15, 2010: Mercury retrogrades in Capricorn, beginning its retrograde cycle at the same place it ended on February 1, 2009. This retrograde will particularly affect the US and the UK. Key Dates: Dec 27-29, 31, Jan 4-5, 7, 11, 13.

Check out the Weekly Forecast for the daily planetary energies.

Weekly Forecast: January 5 – 11, 2009

Summary Of This Week’s Influences/All Times Listed Are Eastern Standard Time (EST)

• General Influences: The week begins with a new cycle of growth and expansion as Jupiter enters Aquarius. Opportunity knocks in unusual and unexpected ways over the next year. Jupiter in Aquarius could expand your circle of friends and acquaintances by connecting with others who share your beliefs and interests. Saturday’s Full Moon in Cancer shines the spotlight on home and family matters. When the Leo Moon takes center stage Sunday afternoon, it’s time to get out of the kitchen and engage in leisure pursuits. Mercury turns retrograde* Sunday morning until February 1, increasing the potential for miscommunications. It’s time to put the RE prefix in front of everything you do: reconfirm, review, revise, revisit, etc.
  (My next post is about this Mercury retrograde cycle. In the meantime, click here for last cycle’s Mercury retrograde post as the suggestions are applicable anytime Mercury is retrograde.)
• Stockmarket: Markets shrugged off the dour economic news last week in light volume holiday trading, preferring to look ahead to the unbridled optimism of the upcoming Jupiter/Neptune alignment. This planetary influence is reflected in the ever growing Obama economic stimulus package. Markets went into full bull mode Friday, despite the fact December’s ISM Manufacturing Index came in at 32.4 – the lowest level since June 1980. This was not surprising, since that was exactly one Saturn cycle ago. Saturn’s contracting energies were particularly pronounced as the planet turned retrograde last week, a lesson Microsoft (MSFT) should understand now.
  
  As 2008 came to a close, Merrill Lynch became part of Bank of America (BAC), National City was acquired by PNC Bank (PNC), and Wachovia is now part of Wells Fargo (WFC). Speaking of banks, it now appears that private equity investor Christopher Flowers is ready to actually buy something (after passing on Bear Stearns and Lehman). Joining Flowers is George Soros, John Paulson (who made a fortune betting against the housing bubble), and Dell (DELL) founder Michael Dell, to purchase IndyMac Bank from the FDIC for $1.3 billion. If the deal goes through it will be the first time unregulated private equity has bought a bank without being a bank holding company. The investors will receive seller financing from the government, along with a loss sharing provision where they will be responsible for less than 30% of IndyMac’s losses. The deal was organized by Steven Mnuchin, Chairman of Dune Capital Management, a former partner of (surprise!) Goldman Sachs (GS).
  
  And GMAC, the finance arm jointly owned by General Motors (GM) and private equity firm Cerberus, got their piece of the TARP along with qualifying for bank status to receive more government goodies.
  
  This week markets appear to be more focused on what’s going on in Washington with the stimulus package than on Wall Street. It’s doubtful the market will be much affected by this week’s hearings, beginning Monday at 2 PM when the SEC’s inspector general testifies before a House Financial Services subcommittee about how the SEC missed Bernard Madoff’s fraud. House Financial Services Committee Chairman Barney Frank holds a hearing Wednesday at 10 AM on how he wants the remaining TARP money to be spent. A hearing will be held Friday at 10 AM on FHA oversight of loan originators.
  Markets appear to have a positive bias, especially the first half of the week. Thursday could get choppy and weaker over concerns about Friday’s employment report, which could get shrugged off after an initial lower reaction. However, market sentiment is likely to shift and become choppier as Mercury begins its retrograde period January 11 – just in time for earnings season.

Monday, January 5, 2009

• General Influences: With the Moon VOC** until entering Taurus at 10:46 AM, there’s not a lot of motivation to get back into the weekday routine after the holidays. That’s okay because Moon in Taurus energy likes to take things slow and steady. The Moon harmonizing with Pluto and Venus puts the focus on money matters. A phone call or e-communication early this evening could catch you off guard.
• Stockmarket: Positive trend bias.

Tuesday, January 6, 2009

• General Influences: Put yourself out there as harmonious energies between the Moon and Sun can enhance your reputation among influential people. A potential money making idea could get the Taurus Moon to jump off the couch early this evening.
  Stockmarket: Mostly positive, but likely turns negative around 3:00 PM.
• Stockmarket: Mostly positive, but likely turns negative around 3:00 PM.

Wednesday, January 7, 2009

• General Influences: Taurus Moon becomes VOC at 1:05 AM. The morning hours favor handling routine matters or taking easy. It’s time to get busy once the Moon enters Gemini at 1:12 PM. Now’s the time to get on the phone or go out and make your sales pitch! A loved one could feel slighted this evening and need some TLC.
• Stockmarket: Positive bias.

Thursday, January 8, 2009

• General Influences: People tend to need variety to keep their overactive minds occupied when the Moon is in changeable Gemini. This is a nervous type of energy, and the Gemini Moon challenging Uranus this evening could only increase any feelings of restlessness.
• Stockmarket: Negative to choppy/mixed conditions.

Friday, January 9 2009

• General Influences: Gemini Moon becomes VOC at 1:40 AM. With the Moon VOC in Gemini, you might want allow some extra time attending to errands and routine tasks as it’s very easy to get sidetracked in chit chat mingling around the office or the neighborhood. The Sun in Capricorn favorably interacts with Uranus. A unique opportunity might present itself today that could help to enhance your professional reputation. Feelings take front and center when the Moon enters Cancer at 1:14 PM. Tensions might arise with a superior or older person later this afternoon.
• Stockmarket: Improving conditions as morning progresses. Begins to weaken in afternoon, and turn negative approaching the close.

Weekend: January 10-11, 2009

• Saturday: People could be more easily irritated early this morning. The Full Moon in Cancer emphasizes spending time with family and attending to things at home. Issues/events occurring now could resurface around February 1. Cancer Moon becomes VOC at 11:27 PM.
• Sunday: Mercury goes retrograde at 11:44 AM. The Sun harmonizing with Saturn today makes it easy to get your work done so there’s time to play when the Moon enters Leo at 12:41 PM. The Moon opposite Jupiter this afternoon favors recreational activities.

*Planets do not really move backward but appear to from Earth’s vantage point.

**VOC (Void-of-Course) = When the Moon (our emotional barometer) ceases to have any major interactions with the other planets before entering a new zodiacal sign. This time period is best suited for anything where NO ACTION OR SPECIFIC OUTCOME is desired, as actions taken during the VOC period might not turn out as planned.

Jupiter in Aquarius: January 5, 2009 – January 17, 2010

Jupiter, the planetary energy of growth and expansion, begins a new one year cycle in Aquarius on January 5, 2009.

Jupiter energy tends to be jovial and optimistic, preferring to view the glass as half full. As the largest planet in our solar system, Jupiter energy does everything in a big way. Usually considered the energy of luck and abundance, Jupiter also represents excess and exaggeration. In the stock market, strong Jupiter energies tend to manifest as large moves that create overbought but can also create oversold conditions.

From December 18, 2007 to January 5, 2009, Jupiter’s growth got contracted in Capricorn, a sign ruled by Saturn, the planetary energy of pessimism and risk aversion. In Aquarius, Jupiter’s energy continues to be contracted as Aquarius was ruled by Saturn until Uranus was discovered in 1781. Saturn is traditional and Uranus energy is rebellious, unafraid to stand up for a cause.

Jupiter energy represents wealth, higher education, the courts/judicial system, publishing, long distance travel/foreign matters, ethics, philosophy, and religion. Uranus represents the winds of change, and Jupiter in Aquarius will likely bring innovation and reform to these areas. Aquarius is the humanitarian, an inventive and eccentric energy that’s not afraid to “make waves” to institute the change it craves. Jupiter in Aquarius energy favors metaphysical spirituality (what the media calls “New Age”) over organized religion.

Previous cycles of Jupiter in Aquarius:
January 22, 1997 – February 5, 1998
February 7, 1985 – February 21, 1986
February 24, 1973 – March 9, 1974
March 16, 1961 – August 13, 1961; November 5, 1961 – March 26, 1962

What makes this particular cycle of Jupiter in Aquarius unique is that Saturn and Uranus, Aquarius’ planetary rulers, are currently in an opposition cycle that began on Election Day and continues to mid 2010. Uranus seeks reform by shaking up and braking up the energies of the status quo (Saturn) that have ceased to properly function. Saturn represents formal structures and hierarchies, such as the government, the financial system, and society at large.

In 2009 (May 27, July 10, and December 21), Jupiter will conjoin Neptune in Aquarius for the first time since 1843. Aquarius energy embraces equality. Neptune energy dissolves barriers and boundaries. The last Jupiter/Neptune cycle in Aquarius saw the rise of the abolition movement to end slavery. One Neptune cycle later, Barack Obama who was born with Jupiter in Aquarius, will become the nation’s first African-American President.

Jupiter conjoining Neptune represents the true (Jupiter) believer (Neptune) of change (Aquarius). Wall Street and the world have high expectations for President Obama who made this theme the centerpiece of his campaign. Since the Jupiter/Neptune alignment will conjoin the USA Moon, the Obama administration’s policies must benefit the public at large for his presidency to be a success. Jupiter conjoining Neptune represents the gigantic economic stimulus euphorically advocated by Jupiter-ruled Lawrence Summers* who will head the White House Economic Council. As Summers wrote last week, “doing too little poses a greater threat than doing too much.” And as much as our Jupiter-ruled Fed Chairman is obsessed with deflation, Jupiter/Neptune energies create inflation. (The only area experiencing actual deflation is Uranus/Aquarius ruled electronics.) Bernanke is unable to spot a bubble even if it’s directly in front of his face, yet he has assured us that he will raise interest rates the moment he detects the first whiff of inflation in the air. Put all these energies together and the overall influence for the stock market in 2009 is likely to resemble a rollercoaster ride that swings from periods of euphoria that rapidly takes the market higher than anyone expected, only to panic and rapidly fall through support levels to hit a lower low. The stock market is likely to end 2009 lower than where it began. You cannot recover from a bubble by creating another one.

Weather wise, the Jupiter/Neptune alignment could create large and powerful storm systems that bring increased high winds, flash flooding, and power outages. A lot of the scientific advances and technology under development during Jupiter in Aquarius will begin to make their debut later in 2010 and 2011 when Uranus enters pioneering Aries. Jupiter’s alignment with Neptune will see a resurgent interest in space exploration.

*Lawrence Summers and Ben Bernanke were both born with their Sun (self-identity) in Jupiter-ruled Sagittarius.

Neptune in Aquarius: 1998 – 2012

Neptune is the mystic and the visionary. It is the planetary energy of hope and inspiration as it is the ability to see beyond what is to a world of unlimited potential and possibilities. Neptune energy can dissolve all boundaries and barriers.

Hope provides the motivation to keep going no matter how challenging the situation. Neptune’s energy is compassionate and idealistic. Neptune’s energies are about faith. If we have faith in ourselves, we can fully open up to Neptune’s intuitive energies that seek to communicate with us through dreams, feelings, visions, and synchronistic encounters.

The flip side of Neptune is the desire to “escape” from life, through playing the sufferer, victim or martyr role by giving away our power to someone or something. Then Neptune’s creative brilliance turns into addictions and addictive behaviors as an escape mechanism. Now we’ve entered Neptune’s realm of confusion, deception, delusion, fantasy, illusion, deceit, despair, and hysteria.

Neptune Rules:
Oil, chemicals, gases, poisons and pollution; contagious diseases
Drugs, alcohol, tobacco
Hospitals, institutions, prisons, and places of retreat
The Arts; photography and film; mythology and magic
Advertising/promotion; glamour

Weather Conditions:
Neptune rules damp, moist and humid conditions, heavy cloud cover/fog, and heavy precipitation that causes flooding. As the ruler of the oceans (Poseidon is the Greek name for Neptune), strong Neptune energies can create hurricanes/monsoons and tsunamis.

Neptune in Aquarius:
Neptune takes 165 years to make a complete cycle around the Sun. Neptune has been in Aquarius, a sign ruled by Uranus, since 1998. Neptune will remain in Aquarius until February 4, 2012 when it will enter its “home” sign Pisces.

Neptune was last in Aquarius from 1834-1848. Aquarius is the humanitarian, seeking equality for all. The last cycle of Neptune in Aquarius saw the rise of the abolition movement, the first women’s rights convention, the peace movement, and the drive for better working conditions. Revolutions occurred in many European countries, along with the publication of the “Communist Manifesto.” Anesthetic ether was used for the first time, and the American Medical Association (AMA) was established. Neptune itself was discovered by two astronomers on September 23, 1846 at ll:55 PM in Berlin, Germany.

The current cycle of Neptune in Aquarius has created entertainment (Neptune) technology (Aquarius), from the iPod to internet social networking sites and virtual communities. The unlimited global reach of the internet has truly dissolved the boundaries of communication.

Financially, Neptune rules credit (from the Latin “to believe”), credit cards, and interest rates. Neptune rules inflation and market bubbles. Neptune represents euphoria to rumors, fraud, and scandals. Neptune’s energies relate to financial conditions that are unrealistic and unsustainable. Charles Mackey wrote the classic bubble book, “Extraordinary Popular Delusion and the Madness of Crowds” during the last cycle of Neptune in Aquarius.

Key Cycles:
Saturn in Leo opposite Neptune in Aquarius (August 2006 – June 2007) began forming cracks in the credit bubble.

Jupiter conjunct Neptune in Aquarius during 2009 will likely see major developments in the merging of spirituality with science. Electrical and computer systems outages could become a widespread problem, along with major computer/internet frauds and security breaches. Market data feeds could transmit false prices that could result in massive financial losses.

During 2009 Neptune will return for the first time to where the planet was in the sky when it was discovered. Saturn conjoined Neptune at the time of the planet’s discovery. In 1989 when Saturn and Neptune conjoined (in Capricorn), NASA’s Voyager 2 spacecraft orbited Neptune, sending back pictures of its rings that Earthbound astronomers had not been able to fully detect. As Neptune returns to the point of its discovery degree, new information about the planet will likely be discovered. One thing becomes clear through Neptune’s haze. Neptune’s dreams and idealism require ringmaster Saturn’s structure and form in order to become an earthly reality.