The New Year’s Eve “Blue Moon” Lunar Eclipse

Published by WallStreetWeather.net

We’ve all heard the phrase “once in a blue Moon” which is popularly defined as two Full Moons in the same month. While blue Moons occur around every 2.5+ years, there hasn’t been a Blue Moon on New Year’s Eve since 1990.

This Blue Moon is a Partial Lunar Eclipse as the Earth will come between the Sun and Moon, partially blocking the Sun’s light from striking the Moon. The Partial Lunar Eclipse occurs at the same time the Moon is at its closest point to the Earth (perigee). The Lunar Eclipse will exert an extra pull on the tides and humans who are composed of over 50% water.

We create water by shedding tears when our emotions are at opposite ends of the spectrum, from sadness and being upset to joy and tears of laughter. With the Moon in its “home” sign Cancer which is part of the water element, moods change quickly.

It is highly symbolic to have a Full Moon on the last day of the calendar year as the Full Moon represents the culmination of what has already transpired. This is a time to release old energies in order to prepare to give birth to new ideas and endeavors at the New Moon. Mercury retrograde and Mars in Leo retrograde further reinforce reviewing past thoughts and actions. With the Full Moon in Cancer, these energies relate to what we need to feel emotionally and physically secure. Food, shelter, and family are Cancer’s key themes. Just as Cancer the Crab has the security of its shell wherever it goes, the Moon opposing the Sun, Mercury, Venus, and Pluto in Capricorn and squaring Saturn in Libra, reflects that we are responsible for creating our own sense of security and balancing our personal and professional lives and relationships. We become insecure when we become too dependent upon others for their assistance or approval.

Cancer is sentimental and Capricorn is traditional. People are more likely to return to the New Year’s Eve “rituals” from the past, such as going out to a restaurant serving comfort-style food before watching a movie, or doing those things at home and then watching the ball go down in Times Square at midnight (Capricorn rules time.) New Year’s Eve celebrations will tend to be more simple and restrained.

The period one week before and between eclipses is not a favorable time to make decisions as the light being blocked symbolically represents that we do not have all the information we need to make a sound decision. Eclipses are harbingers of change, and things tend to be seen in a whole new light beginning a week after the eclipses have passed. This is especially true with Mercury retrograde until the January 15 Solar Eclipse in Capricorn.

In the USA, the Lunar Eclipse occurs at 2:12 PM EST on New Year’s Eve. Mercury rules the chart set for Washington. The nation’s thoughts and news are focused on the economy/banking system and the impact of global actions and events affecting the stock market which appears to be restrained from making new highs, likely drifting sideways before heading lower. Renewed fears about sovereign and commercial debt, as well as residential mortgages will cause bond yields and mortgage rates to rise. The eclipse opposes New York City’s Sun in Capricorn, further emphasizing events affecting Wall St. and the city’s reputation as a global financial center. Uranus in Pisces could bring some unexpected developments in Congress.

Increased precipitation is likely around this time. Weather conditions in most of the country tend to continue to be cold and harsh but could have brief periods of milder more pleasant weather. Travel difficulties likely remain between the Midwest and East Coast. Areas more likely to be prominent in the news now are the West Coast and surrounding states, as well as New Mexico (Albuquerque). California and Nevada could be prone to earthquakes and unexpected severe weather. Surprise developments could come out of Silicon Valley.

The path of the Lunar Eclipse will be visible over most of Europe, Africa, the Middle East and Asia. Nations more likely to be prominent in the news at this time are the UK, France, Libya, Zaire, Mozambique, Iran, U.A.E., Oman, Afghanistan (central and southeastern; Quetta), Pakistan (Karachi, Haripur, Rawalpindi), India (west coast;Mumbai and Ahmadabad), Burma, China (Beijing, Hong Kong), Taiwan, Indonesia, Philippines, Australia (east/west coasts; Melbourne).

Our current thoughts and actions on an individual and global level affect our future. Eclipses raise similar themes to the previous eclipse occurring on the same date and degree in the zodiac. The last New Year’s Eve Lunar Eclipse followed by the Solar Eclipse of January 15, 1991 began the first Gulf War. Except for a brief hiatus between Papa and Junior Bush, we haven’t left. Even with the tendencies for this to continue, Venus conjoining the January 15, 2010 Solar Eclipse offers the chance for the US to pursue diplomacy and gain cooperation with its allies instead of pursuing more war in the Middle East.

The next New Year’s Eve that will be a Blue Moon and a Lunar Eclipse will be in 2028. If we don’t want to be dealing with the same issues that we’re facing now, take the time on this New Year’s Eve to review and reflect upon the ways you can feel secure.

WallStreetWeather.net Forecast For Week Of December 27, 2009

WallStreetWeather.net Forecast For Week Of December 27, 2009
The major indices reached new 2009 highs last Thursday, correlating to the historical tendency of the stock market to move up during the last two weeks of December.

Aquarius and its ruler Uranus represent extremes. The influence of Saturn opposite Uranus from Fall 2008 through Winter 2009, helped drive the Dow and the S&P down to decade lows. Jupiter is sometimes described as Santa Claus, and the influence of Jupiter conjoining Neptune in Aquarius from the Spring took global markets to the opposite extreme thanks to zero interest rates, government-backed loans, and global government stimulus measures.

To match the energies of optimistic Jupiter conjoining with Neptune the planet of dreams and illusion, there seems to be an attitude of party now and deal with the problems later.

Welcome to 2010. As Dennis K. Berman explains in an article in last Monday’s Wall Street Journal:

“Lots of worries hang over the coming year: the direction of the U.S. dollar, the Federal Reserve’s inflation-fighting, sovereign-debt downgrades and relations with China. None will top the biggest Wall Street story of 2010: the most significant financial regulation in 75 years.”

Timothy Ryan, the CEO of the Securities Industry and Financial Markets Association says “This is the rerun of the 1930s.” And he’s right. It is a rerun as Mercury is retrograde in Capricorn and Mars is retrograde in Leo at the same time and place they were in December 1930 to January 1931.* From June 1930 to July 1931, Jupiter (expansion), Saturn (contraction) Uranus (extremes/shocks), and Pluto (bankruptcy/transformation) were in cardinal (action-oriented) signs. Jupiter and Pluto were in Capricorn’s opposite sign Cancer. (Cancer rules food and describes the bread lines.)

During 2010, these same planets are or will be moving into cardinal signs. Uranus moves into Aries May 27 for the first time since its last transit from April 1927 to March 1935. Jupiter will follow June 6 and conjoin Uranus June 8. Just like the early 1930s, Jupiter and Uranus will oppose Saturn at the same time these three planets square Pluto. This configuration will be at its strongest in July and August 2010.

This does not mean that we will experience another Great Depression, but it is an overdue wakeup call for major reforms to take place as these planets converge over the USA Venus (banking system). Already the financial reform bill that passed the House on December 11 has so severely weakened proposed derivatives regulations that it will exempt nearly half of the $600 trillion in outstanding derivatives transactions from clearing requirements. This is despite the fact that the opaque world of derivatives trading precipitated the financial crisis and brought down AIG.

If Congress does not end up passing legislation requiring all parties involved in a derivatives trade to post margin or collateral, it is setting Wall St. up for another financial crisis. And in the event of another crisis, the House bill allows regulators and the Treasury to guarantee the debt of a “solvent” institution. This precipitates the volatile complete lack of moral hazard in institutions even bigger than the old “too big to fail.”

The influence of Jupiter conjoining Neptune brought us out of the crisis and back into a false sense of security and complacency. 2010 could bring many ups and downs in the market throughout the year. January and February is likely to inject a dose of reality to the market. Things perk up in the spring and as I wrote in a previous post, by June we could really have an inflation problem if the Fed doesn’t start tightening. Jupiter conjoining Neptune gave the illusion that there’s no inflation even in asset prices.

As Jupiter made its final conjunction to Neptune last Monday, Chicago Fed president Charles Evans hinted on CNBC that the Fed keeping rates low “for an extended period of time” could last for another three to four FOMC meetings which would mean the Fed would start tightening at its June 23 meeting. The Sun in Cancer will square Uranus in Aries June 21 and Jupiter in Aries that day. (The Moon enters Jupiter ruled Sagittarius at 2:10 PM EDT.) All three planets will impact the Fed’s natal Sun/Pluto opposition indicating a change in monetary policy to prevent economic expansion from causing inflation to spiral out of control.

The bottom line is that 2010 is not going to be the easy year for the market that 2009 turned out to be. Instead there will probably be periods of turbulence followed by a sharp rally and then more turbulence and volatility followed by the Sun shining again. ETFs might not especially perform as well between June and August when Jupiter and Uranus are in Aries, as one stock is likely to outperform while the rest of the stocks in the ETF will underperform. As Main St. begins to improve, it will become more challenging for Wall St.

Just as the Fed and the government’s extraordinary measures kept the market in full bull mode even during the late summer to early autumn gap between the Jupiter/Neptune alignment, the stock market has a propensity to be up during the last two weeks of December.

Instead of doing a daily forecast for this abbreviated week, I will do what I should have done last week and briefly describe the planetary influences and their tendencies.

Venus has now moved into Capricorn and Mercury is retrograde in Capricorn until January 15. Venus shifting into Saturn-ruled Capricorn until January 18 creates a more cautious outlook about financial matters. Mercury turning retrograde can reverse the market’s trend, but the strong end of year factor could delay this effect until January (Saturn/Capricorn represent delays).

Venus conjoins Pluto in Capricorn on Monday (the first time since the 18th century) and Saturn in Libra early Tuesday. The focus is on banking with the Moon (sentiment) in Taurus, and the debt (Pluto) held by banks and sovereign nations. An announcement related to a merger or talk of a potential takeover is possible.

With the Moon in Mercury-ruled Gemini Tuesday and Wednesday, the influence of Mercury retrograde could cause some choppiness and weakness. Tuesday’s Consumer confidence number could come in lower than expected. Thursday’s Blue Moon Lunar Eclipse in Cancer should see the indices finish up on the last day of 2009.

I want to wish all Wall Street Weather readers a happy, healthy, and prosperous 2010 regardless of what the markets do!

*The two were also retrograde simultaneously in the same signs in January to early February 1963 but Mercury began its retrograde cycle then in Aquarius.

Related Post:
“The December 21, 2009 Winter Solstice”

Mercury Retrograde in Capricorn (December 26, 2009 – January 15, 2010)

Published by WallStreetWeather.net
Mercury is the planetary energy of communication, movement, and commerce. For three weeks about three to four times a year, Mercury appears to move backward in the sky from Earth’s vantage point. This post explores what Mercury retrograde is, how to make the most of it, and its potential implications for the economy and financial markets.

Mercury is retrograde December 26 to January 15, 2010. Retrograde is symbolized by Rx. Rather than making major decisions, starting new endeavors, and making major purchases, the remedy for the next three weeks is to engage in reflection and research. It’s a time to rethink, review and revisit situations we’ve overlooked, rectify past errors, and reattempt to resolve issues that previously failed to reach fruition. Put the RE prefix in front of everything you do: reapply, reform, renegotiate, repair, revise, redo, reconnect, reinvent, retry, etc.

Scrutinize all data especially receipts and financial statements which could be more prone to errors. Avoid signing important documents during this time unless carefully reviewed multiple times (even if it was vetted by an attorney). Allow extra time for travel as well as for shipments to reach their destination. Unsettled weather conditions can cause accidents, delays, cancellations, and power outages. With Mercury retrograde in Capricorn and a majority of planets in Capricorn and Aquarius, frigid temperatures and severe weather conditions will accentuate travel problems.

Capricorn is ruled by Saturn. Mercury rules schedules and Saturn and Capricorn rule time and how we keep track of it. Reconfirm all appointments and arrangements and keep your schedule as flexible as possible to accommodate unexpected changes and developments. This is a good time to reorganize your home and office and reflect if you are truly spending your time wisely.

With Mars in Leo retrograde (December 20, 2009 to March 10, 2010) as well, it is a time to review our thoughts (Mercury) and actions (Mars) rather than moving forward. Thoughts and actions are subject to readjustment. All types of communication and mechanical devices are more prone to malfunction or breakdown during this time. Keep devices fully charged, frequently backup files, and have printouts of important documents. It’s best to postpone purchasing new electronic devices, appliances, or automobiles unless you are replacing it with the identical product.

Motor vehicles are ruled by Mercury and Mars. Replace your vehicle’s brakes if they are dangerously low! Potential problems during this time could be related to the vehicle’s ability to stop/start, engine (the annoying “check engine light”), steering, turn signals, headlights, entertainment* and navigation systems, and sunroof/convertible top.

Capricorn rules career, public reputation, and tradition. The Sun in Capricorn (December 21 to January 19) ushers in the new calendar year. Many people make New Year’s resolutions that fail by February. (See “Blame It on the Brain”; Mars rules the brain.) Mercury retrograde is a good time to retry what has failed in the past. Capricorn energy is about moderation. There are no quick fixes; only time and genuine effort will reap lasting results.

The most common New Year’s resolutions relate to improving physical appearance, and this is especially true with Saturn in Libra. Don’t resolve to lose weight or it will surely find you again! Instead mentally focus on releasing the weight. Remove all food and drink from your diet that contains sugars and other chemicals. Replace them with water and unsweetened all natural juices, and primarily eat fruits and vegetables. Get frequent exercise and incorporate more movement into your daily routine. On the subject of health, Capricorn rules the knees, bones/joints, teeth, and skin.

When Mercury is retrograde there’s a greater tendency to be in contact with people from the past. It’s a good time to reconnect with a former boss or mentor and former clients/customers. If you’re looking for work, reapply to former employers or companies who rejected you in the past. Retake tests. January 4 and 5 (before 12:24 PM EST) are the best days for this. This is also a good time to restart all types of negotiations that previously failed.

Days Mercury retrograde’s influence could be the most pronounced: December 26, 28-31, Jan 1, 4-6, 12-15.

Economic/Financial/Geopolitical: With Mercury turning retrograde the day after Christmas, retailers could be faced with more returns than usual. Many of these returns will come from consumers who bought merchandise for themselves and are returning it because they were able to obtain the item at a lower price elsewhere. Venus entered Capricorn Christmas day until January 18. Together with the Sun and Pluto in Capricorn, consumers will only be interested in purchasing quality merchandise at low prices. Retailers who put out overpriced junk geared for consumers with gift cards will be disappointed as consumers will be very particular about what they spend money on regardless if it was a gift. The era of Pluto in Capricorn (2008-2024) is about quality over quantity and living within your means.

As CNBC understands, Mercury retrograde tends to create choppy and volatile trading patterns that reverse trends. Mercury combined with Mars retrograde can slow trading down. A more cautious and pessimistic outlook pervades with Mercury and Venus in Capricorn and Capricorn’s ruler Saturn squaring Pluto.

Conflicting economic data and technical signals send mixed messages. Data feeds could be problematic, displaying inaccurate information (ditto for the news media). Currencies and bonds are particularly affected. New deals announced during retrograde are more likely to fall through. Any discernable trading pattern begun during the retrograde period could begin to shift by February 4 when Mercury moves forward into new territory.

Capricorn rules governments and corporate and world leaders. Leaders could reverse or renege on previous positions and statements. Others could resign. Mercury retrograde in the USA** indicates that previously undisclosed information about corporate, government, and sovereign debt could affect profits. News about hospitals and other treatment facilities, drugs, and insurance companies gets revealed. This information will have a negative effect on the stock market as Mercury rules the sectors of the chart representing speculation and debt.

Mercury Retrogrades in 2010:
Except for the end of the year, Mercury will retrograde in earth signs in 2010, emphasizing financial and practical considerations.

April 18 to May 11: Mercury retrograde in Taurus (money, banking, material assets, self-worth and personal values).

August 20 to September 12: Mercury retrograde in Virgo (health, workforce and military, daily routine). This is a pronounced retrograde period as Mercury rules Virgo.

December 15 to 30: Mercury turns retrograde in Capricorn at the same spot where it turned direct January 15, returning to themes present during this Mercury retrograde. Thoughts shift from cautious to optimistic as Mercury moves back into Sagittarius December 18. Mercury will retrograde in fire signs*** during 2011 and 2012. It's time to rethink our mental outlook from one of fear and pessimism to one of enthusiasm for creating a brighter vision now and for the future.

*Personal experiences of the Mercury/Mars retrograde: The day Mars went retrograde I drove to the store listening to music on the car radio. When I went to turn the radio on driving home, the radio power buttons on the dash and steering wheel would not work, and the stereo won’t accept CDs or cassettes (car is 8 yrs old). Radios are ruled by Mercury, but listening to music is entertainment (Leo). Now as Mercury turns retrograde, the backup battery in my 11 yr old solar powered (Leo) watch (Capricorn) will have to be replaced for the first time.

**Chart set for Mercury retrograde December 26, 2009 at 9:38 AM EST Washington, DC.

***The fire signs are Aries, Leo, and Sagittarius.

The Weekly Forecast features a more detailed look at current and upcoming planetary influences. Check back early next week for my post on the New Year’s Eve Blue Moon Lunar Eclipse.

The Stars Were Aligned When The Senate Passed Healthcare Today

Published by WallStreetWeather.net

After months of debate and extreme contentiousness, Vice President Biden announced on the Senate floor at 7:16 AM this morning the healthcare bill passed 60 to 39. No Republicans voted for the legislation. A conference committee is already working on merging the House and Senate bills for both chambers to pass a final bill for President Obama to sign.

Pluto is the planetary energy of major transformation. First Pluto begins exposing what is wrong. Then the problem gets deeper until it reaches a critical mass. What is no longer working must die in order for it to be transformed and reborn into something more viable.

Pluto rules life and death issues that society would prefer not to directly deal with in an open and honest manner. As the mythological lord of the underworld, Pluto rules secrets and the occult (meaning hidden). Pluto is power and massive wealth held by the few – the plutocrats. Pluto is corruption and undercover deals. Pluto rules mergers and takeovers, debt, taxes, and insurance. With Pluto in Capricorn from 2008-2024, governments will be transforming these issues.

Venus rules money and the banking system. In the USA chart, Venus rules the sector representing healthcare and employment as well as the sector ruling government (specifically the Administration). These energies reflect that health insurance is largely connected to employment.

Venus conjoins Jupiter in Cancer in the USA chart, and Moon-ruled Cancer presides over the sector of the USA chart representing insurance. During 2009-10 Pluto in Capricorn is opposing Venus and Jupiter (2010-11). The financial system, healthcare system, the deficit, and taxes are the key issues Pluto will be transforming in a huge and profound way during this time.

Pluto first opposed the USA Venus in early March when the Dow and the S&P hit multiyear lows over fears that the government would take over the banks. On May 7 at the time of the second opposition of Pluto to the USA Venus, the government announced the nation’s largest banks had passed the “stress test.”

Mercury turned retrograde that day, reflecting news about an already existing issue. Now the Administration’s focus would turn to healthcare reform. On May 13, with Mercury retrograde, the energies of Capricorn’s ruler Saturn pronounced,* and the Moon (sentiment) in Capricorn, President Obama announced at the White House:

“We've got to get it done this year -- both in the House and in the Senate. And we don't have any excuses; the stars are aligned.”

In “ President Obama Declares “The Stars Are Aligned” For Healthcare Reform This Year,” I explained that Mercury retrograde can be a good time to reattempt what was unsuccessful in the past. Saturn and Capricorn rule history and although my post focused on President Truman’s efforts and the enactment of Medicare in 1965, the quest for healthcare reform goes back to Republican President Theodore Roosevelt who ran again for president in 1912 as a Progressive Party candidate whose platform called for government run healthcare.

As I described in the post, Jupiter and Neptune conjoining in Aquarius** beginning in the spring of this year represented an opportunity for Congress to break down existing barriers and expand healthcare for all Americans. Aquarius represents extremes, and the flip side of Jupiter/Neptune is to spread lies and propaganda through corporate and politically connected special interests disguised as grassroots groups seeking “freedom” from government run healthcare. Republicans decided early on it was more important to make healthcare reform President Obama’s “Waterloo” than cooperate with Democrats in exchange for incorporating tort reform and other ideas Republicans have claimed are important yet have never made any effort to address even when they were the party in power.

Jupiter reflects the hypocrisy displayed by Republicans and “conservative” Democrats who claimed they couldn’t vote for a bill that would further expand the deficit. These are the same members of Congress who don’t care how much of the federal budget is blown on wars (then it gets charged directly to the debt, hidden from the budget). These politicians complain that Medicare and Medicaid spending is out of control, yet they wailed against meaningful attempts in the House and Senate bills to contain medical costs.

Jupiter conjoining Neptune in Aquarius also reflects the intense lobbying by the U.S. Conference of Catholic Bishops and other religious and anti abortion groups who believe the rights of the unborn are more important than the health of the people who are already here.

Pluto rules abortion. On November 7 as Saturn in Libra began to square Pluto, the House passed a healthcare bill after agreeing to the Stupak Amendment that would prohibit the use of federal subsidies for insurance policies that cover abortion.

Getting the bill passed in the Senate required dropping the public option entirely in order to appease Sens. Joe Lieberman and Ben Nelson. Jupiter and Neptune are squaring Lieberman’s Saturn/Mars/Uranus in Taurus, and Nelson’s Sun/Uranus/Jupiter in Taurus. Both men stubbornly cling to rigid beliefs and enjoy being defiant unless they get what they want. Taurus is ruled by Venus, and both Senators have received a lot of money from the insurance industry. Having the Sun conjunct Jupiter in Taurus, Nelson made sure his yes vote brought special perks for Nebraska such as an exemption from paying additional Medicaid costs and a tax exemption for Mutual of Omaha, a political contributor.***

Monday marked the third and final conjunction of Jupiter and Neptune. Republicans kept employing parliamentary maneuvers to delay voting on the bill, with medical doctor Sen. Tom Coburn saying on the Senate floor Sunday that “the American people ought to pray that somebody can’t make the vote tonight.”

Sen. Coburn was alluding to the ailing 92 year old Sen. Robert Byrd who with his Sun in Pluto-ruled Scorpio is strong willed and was determined to vote. Capricorn and its ruler Saturn represent the elderly and historic events. Sen. Byrd has already made history as the oldest and longest serving Senator and member of Congress. When casting his vote this morning, he shouted: “I am casting this vote for my friend Ted Kennedy and am voting Aye.”

Pluto opposing the USA Venus for the third time and the Sun conjoining Pluto and squaring Saturn now reflects the historic significance of the vote despite all the powerful special interests conspiring to kill healthcare reform once and for all. Liberals disappointed with the Senate bill should realize that if it took this much effort just to get this bill passed, it is critical not to lose what has been so elusive for decades by insisting on a public option or other changes to the bill that would not make it through the Senate. Sens. Lieberman and Nelson mean it when they say they will vote against the House making any material changes to the Senate bill. These Senators would be perfectly willing to let the legislation die if they don’t get their way. And if Sen. Byrd transitioned before the bill reaches the President’s desk, the House will be forced to pass the Senate’s version of the bill or end up with nothing.

Liberals who want to hold out for a government option or a “Medicare for All” (single payer) system should remember that Sen. Kennedy said his biggest regret as a legislator was that he didn’t cut a deal with President Nixon for universal healthcare. President Clinton has conveyed the same message to Democrats: take what you can get while you can get it. Abortion opponents taught us the lesson that all you need to do is seed the first piece of legislation and then continue adding to it. Their form of continuous improvement should give encouragement to liberals and progressives disappointed with the Senate bill. As Senate Majority Leader Harry Reid remarked the other day, “we had to deal with the art of compromise.”

Libra represents compromise and the process of marrying the House and Senate bills into one piece of legislation. While Saturn represents the status quo and Pluto the interests of the wealthy and powerful, Saturn in Libra squaring Pluto in Capricorn also describes the transformation the healthcare legislation will undergo after it is signed by President Obama to make healthcare equitable and accessible for all Americans.

Libra is ruled by Venus and symbolized by the scales of justice. Venus and Pluto in the sector of the Senate passage chart representing the public is squaring Saturn in Libra in the sector representing the judicial system. Once President Obama signs the legislation, the public will demand changes to the bill that would help consumers get insurance coverage and all the consumer protections enacted now. President Obama can use the powers of government to coerce insurance companies to ease up on medical underwriting, allowing more people into the system before most provisions in the bill take effect in 2014.

The Sun conjoining Pluto and squaring Saturn reflects that the heart of the bill – requiring coverage for all Americans – is delayed until 2014 (2013 in the House version) in order to keep the bill’s cost under $1 trillion and “revenue neutral” to appease the so called deficit hawks. The Sun rules speculation, and with the Sun conjoining Pluto, health insurance stocks have soared as soon as it began to appear that the public option was off the table in the Senate. As Michael at ClickBroker explains, this is a short term gain.

The Sun and Pluto squaring Saturn reflects how heavily regulated health insurance companies will become over time as the government will not be able to subsidize the premiums of millions of Americans at ever increasing cost levels. Saturn’s rings reflect the federal government’s spending limits and need to contain costs. With Saturn less is more. Cost effectiveness measures will be implemented on the medical industrial complex that will not only rein in spending, but end up providing more Americans with more efficient and better care.

During 2010 Jupiter, Saturn, Uranus, and Pluto will be in cardinal signs forming challenging alignments to one another. As the planetary energy of revolutionary change and reform, Uranus in Aries squaring Pluto and key planets in the USA chart will put reform on a fast track. Instead of Americans starting to select health insurance from an exchange in 2014, they could be joining seniors in “Medicare for All.”

Saturn squaring and Pluto opposing the USA Venus and Jupiter reflect that the fear of the government nationalizing complex banks like Citicorp was way overblown. As the AIG experience has shown, it would be impossible for the government to manage an institution as complex as an international bank. However, the health insurance industry is such a simple business model that even the government can handle it efficiently.

*Planets do not really move backwards, but appear to from Earth’s vantage point. Mercury retrograde is a time to rethink and revisit proposals that previously failed. Planets that appear to be motionless in the sky before they station retrograde or direct motion makes the energies they represent more pronounced.

**Jupiter exactly conjoined Neptune on May 27, July 10, and December 21, 2009.

***Berkshire Hathaway was Nelson’s top contributor.

USA: July 4, 1776 5:10 PM Philadelphia, PA
Robert Byrd: November 20, 1917 time unknown
Joe Lieberman: February 24, 1942 time unknown Stamford, CT
Ben Nelson: May 17, 1941 time unknown McCook, NE

The December 21, 2009 Winter Solstice

Published by WallStreetWeather.net

Winter began in the northern hemisphere at 12:47 PM EST today when the Sun entered Capricorn.

The Winter Solstice is the shortest day of the year. Candles and lights illuminate the darkness and represent the return of the Sun’s light that increases each day until the Summer Solstice. Capricorn is ruled by Saturn who the Romans honored during the weeklong feast of Saturnalia at this time each year before Christmas was invented.

Last year was the first Winter Solstice since 1762 that the Sun conjoined Pluto in Capricorn. Saturn and Capricorn rule government and societal structures. Pluto rules debt, insurance, and deep transformation. This year the Sun and Pluto are squared by Saturn in Libra which is exerting pressure to balance what has become inequitable and out of balance.

The planetary energies present during the Winter Solstice influence the next three months. Mars is the ruler of the chart set for Washington DC. Mars represents action and in Leo, it represents actions taken by leaders (the Sun). Mars in Leo turned retrograde* yesterday until March 10. President Obama will be re-evaluating the actions the Administration has taken and not taken this last year. Mercury in Capricorn forms a stressful alignment to Mars in Leo and is retrograde from December 26 to January 15, reflecting the Administration will have to make several readjustments to get its agenda back on track.

President Obama will be focused on getting the healthcare bill signed into law and then pressure Congress to pass a corrections bill. In the interim between the two bills, the President might order the Justice Department to exert pressure on insurance companies to ease up on medical underwriting.

Retrograde Mars in Leo is located in the sector of the chart representing the stock market. Trading is likely to slow down while Mars is retrograde. The stock market will likely move lower during the next three months over economic and market fundamentals and continued concerns about debt defaults. Global markets have grown concerned about sovereign debt defaults in Greece, Spain, Portugal, Ireland, Hungary, the U.A.E., Russia, and Brazil. All of these countries have planets in their national charts that are impacted by Saturn square Pluto. Saturn and Pluto impact the USA natal Venus and Jupiter in Cancer highlighting the nation’s high level of residential and commercial real estate debt.

President Obama will be pushing Congress to pass financial regulatory reform which will probably not be ready for his signature until the Vernal Equinox period that begins March 20. Employment conditions remain tight and signs of growth are slow and uneven.

The USA’s natal Moon in Aquarius conjoins the Moon, Jupiter and Neptune in the sector representing Congress. The public has high hopes and expectations that Congress will pass legislation that benefits Main St.

Financial markets have the potential to make more pronounced market moves around the following days:
December 28-29, 31
January 4-5, 11, 13-15, 22, 25, 27, 29
February 1, 5, 8, 10-12, 16, 26
March 1, 3-4, 8-11, 15-19

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

The Weekly Forecast features a more detailed look at current and upcoming planetary influences.

WallStreetWeather.net Forecast For Week Of December 20, 2009

Summary Of Last Week’s Influences:
Last week’s events primarily emanated from Wednesday’s New Moon in Sagittarius that made contacts to every planet except Mercury.

With the New Moon conjoining his Sun in Sagittarius, TIME magazine named Federal Reserve Chairman Ben Bernanke “Person of the Year” Wednesday, the same day the FOMC kept monetary policy unchanged but reiterated in its announcement when the Fed would end its special liquidity programs and stop buying agency MBS. Sagittarius is ruled by Jupiter, the planet of expansion. With his Sun in Sagittarius opposite Jupiter in Gemini, Bernanke believes that the only way to expand the economy is to create an economic environment of ultra low monetary policy and excess liquidity that will push investors to go further out on the risk curve to seek yield.

Jupiter and Sagittarius rule academia. The former Princeton professor takes pride in being a scholar of the Great Depression, yet Bernanke’s chart reflects that even if he never studied the Depression it is his nature to engage in policies that promote excess because of his Sagittarius Sun opposing Jupiter.

He exaggerates when he says “we came very, very close to a depression. The markets were in anaphylactic shock,” believing that the actions he took during the financial crisis is “a lot better than where we could be.”

With several planets in fire and none in the practical earth element, Bernanke is a true firestarter. He continued to expand Greenspan’s bubbles. And when they burst he was lauded for putting out the flames of the fire he had turned into an inferno.

Bernanke believes the politicians and the public who are disgusted with him and the Federal Reserve are just angry about the Fed’s bailouts when the real issue is that many members of Congress have had enough of the Greenspan/Bernanke philosophy of creating asset bubbles that burst and cleaning them up later.

As I wrote last week, by a vote of 16-7 Bernanke’s nomination to a second term as Fed Chairman passed the Senate Banking Committee, with Richard Shelby, the ranking member among the Senators voting no. A vote by the full Senate has not been scheduled and is already being blocked coming to the floor by a couple of Senators from both parties. With Jupiter conjoining Neptune, rumors began circulating last week that the rising opposition will force Bernanke to withdraw his nomination. A couple of Senators have said they’d like to replace Bernanke with former Federal Reserve Chairman and current Chairman of President Obama’s Economic Advisory Board Paul Volcker who is respected on both sides of the aisle. I couldn’t agree more! From a planetary perspective, there is potential for this to happen. At a minimum, Volcker looks to be having an expanded role in shaping financial regulatory reform in 2010.

Volcker has been outspoken lately about the damage that Wall St’s financial innovation has done to the economy. Volcker would like to see commercial banking separated from investment banking. On Wednesday, Sens. McCain and Cantwell introduced a bill to repeal the 1999 Gramm-Leach-Bliley Act that repealed the Depression era Glass-Steagall Act. Mercury was retrograde when President Clinton signed the 1999 Act, raising the possibility that the bill could be repealed. Venus rules banking. Saturn conjoining the Act’s Venus in Libra and Pluto squaring it illustrates that the marriage of commercial and investment banking has been self destructing and needs to die so it can reincarnate in a different form.

The New Moon squaring Uranus in Pisces raises the potential for defiant behavior. The New Moon squared and Uranus conjoined Iran’s natal Mars, increasing the potential for aggressive actions. On Wednesday Iran test fired an “optimized” version of its Sajjil-2 missile with a 1200 mile range. Crude oil rose Friday after the Iraqi government said Iranian troops seized an oil field along Iraq’s southeastern border with Iran.

Last month’s New Moon revealed more evidence against cholesterol drug Zetia. Under the Sagittarius New Moon, an FDA advisory panel overwhelmingly recommended the FDA approve Crestor for men 50+ and women 60+ who have normal cholesterol levels and no heart disease risk but have an elevated level of C-reactive protein. Their recommendation was based on AstraZeneca’s (AZN) Jupiter trial. Crestor costs $1,900 a year retail. 25 patients would have to be treated just to potentially avoid 1 cardiac event. To put it bluntly, 24 people would have to suffer the needless adverse effects of statins just so one person might be protected.

Summary Of This Week’s Influences:
An abbreviated holiday week is not the only reason that trading will substantially slow down. Mars, the planetary energy of action, appears from Earth’s vantage point to turn retrograde today until March 10, 2010. Mars is in Leo, the sign of speculation. Trading volume tends to slow down and it will become more difficult for the stock market to continue making new 52 week highs. At best, the major indices will drift sideways. However, it is more likely that the market exhibits difficulty holding onto the huge gains made from the early March lows.

On Monday Jupiter and Neptune make their third and final conjunction in Aquarius. Jupiter represents excess as in the Fed taking interest rates down to zero. As the ruler of the oceans, Neptune combined with Jupiter provides plenty of liquidity. Neptune rules social programs which the Fed and the government have provided not only for financial institutions, but insurance and auto companies. Neptune rules bubbles and inflation, and Jupiter conjoining Neptune has created a giant asset bubble in stocks, commodities, bonds, and betting against the dollar.

Government lending and stimulus programs end in the first quarter of 2010, along with the Fed’s agency MBS buying. Congress will pass sweeping financial regulatory reforms, and interest rates will rise much sooner than Wall St. believes. Economic conditions will continue to improve, but the stock market already reflects the most optimistic projections have been priced in. Jupiter conjoining Neptune was like an oasis in the desert. Now that it’s over, it will seem more like a mirage.

Jupiter rules religion, Neptune beliefs, and Aquarius represents pooled investments such as exchange traded funds (ETFs) and mutual funds. Aquarius especially reflects socially responsible investing (SRI). So it seems fitting that FaithShares, a group of five different religious ETFs (Catholic, Christian, Baptist, Lutheran, and Methodist) will ring the opening bell at the NYSE Monday. (Jupiter conjoining Neptune also reflects the huge management fees SRI funds charge investors to feel good about what they’re investing in.)

Leo rules gold. Since Mars entered Leo October 16, gold has soared from $1,050 to a record nominal high of $1,217 December 3. Since then the dollar has strengthened and gold has declined almost every day to close Friday at $1,110. Gold usage remains weak. Gold’s enemy is a strong dollar and higher interest rates as the metal’s carrying costs becomes too expensive to own relative to other investments. Mars retrograde decreases the probability that gold will bounce back and exceed its December 3 high.

The Winter Solstice occurs at 12:47 PM EST Monday when the Sun enters Saturn-ruled Capricorn. In the USA, Mars rules the Solstice chart and is located in the sector of financial speculation and forms a challenging alignment to Saturn square Pluto. The global risk trade slows down. The chart for Thursday’s First Quarter Moon in Aries conveys a similar energy to the Winter Solstice chart.

Spending becomes more cautious and restrained as Venus (money/banking) enters Capricorn until January 18. Mercury, the planet of communication, movement, and commerce will turn retrograde in Capricorn early Saturday until January 15. During Mercury retrograde it’s important to put the re prefix in front of everything you do: reconfirm, rethink, renegotiate, repair, revise, redo, reconnect, reinvent, retry, etc. Reconfirm all travel plans and allow extra time to reach your destination.

Mercury and Mars retrograde at the same time emphasize the slowdown and choppy/sideways trading to reversals of market trends in place prior to retrograde. Mercury and Mars are in a stressful alignment to each other during this time, emphasizing that thoughts and actions are subject to readjustment.

I will write a post on the Winter Solstice tomorrow and more on Mars and Mercury retrograde by midweek. I’d like to wish all Wall Street Weather readers a joyous and peaceful holiday season!

Monday, December 21, 2009
Negative.

Tuesday, December 22, 2009
Positive in the morning, then becomes choppy/mixed before declining in the afternoon.

Wednesday, December 23, 2009
Choppy/mixed; negative trend bias.

Thursday, December 24, 2009
The Sun conjoining Pluto and squaring Saturn exerts downward pressure, keeping the indices in a tight range between negative to choppy/mixed to slightly positive. The stock market closes at 1:00 PM for the Christmas holiday.

WallStreetWeather.net Forecast For Week Of December 13, 2009

On Monday the Sun in Sagittarius challenges Uranus in Pisces and also aspects Jupiter and Neptune in Aquarius. Sagittarius is ruled by Jupiter and Aquarius is ruled by Uranus. Together these planets reflect the cycles of Saturn opposite Uranus (2008-2010) and Jupiter conjoining Neptune in Aquarius this year.

Uranus is the planetary energy of extremes and sharp and sudden price movements. The stock market went from making a twelve year (one Jupiter cycle) low in early March to the opposite extreme where certain asset prices have now entered bubble territory.

Saturn rules government. The first two oppositions of Saturn and Uranus (November 4, 2008 and February 5, 2009) were followed by new multiyear declines in the stock market as the government became more deeply involved in financial institutions. By spring, markets went from being spooked by the government’s involvement in the financial (and auto) sectors to reaping the rewards provided by government guarantees, stimulus programs, and zero interest rates.

Jupiter represents expansion and optimism and Neptune represents beliefs and bubbles. With both planets exactly conjoining for the first time on May 27 in futuristic Aquarius, the “ocean of liquidity” provided by the government and the Federal Reserve was the rocket fuel needed to send stocks, bonds, and commodities soaring as if the economy was on fire. Each time it appeared that the hot air balloon could come crashing to the ground, the Fed would reiterate that “rates were likely to remain low for an extended period of time” and the government would institute another round of stimulus in one form or another. The impetus was so strong that when Saturn and Uranus made their third opposition on September 15, the indices went on to make fresh 2009 highs the following month. (Rather than the stock market retreating, Mercury retrograde during September ended up reversing the prior outcomes of Saturn opposite Uranus.)

To paraphrase the title of an article in last Monday’s Wall Street Journal, the bull market is exhibiting some signs of aging as the cycle of Jupiter conjoining Neptune comes to a close.Venus in Sagittarius harmonizing with Mars in Sun-ruled Leo this week continues the party now, deal with the tougher issues later attitude.

The Sun and Leo rule speculation. Mars in Leo turns retrograde December 20 until March 10 and Mercury is retrograde December 26 to January 15. Retrogrades can reverse trends as communications (Mercury) and actions (Mars) get reexamined. Jupiter and Neptune will conjoin for the final time on December 21, the same day the Sun enters Capricorn. From December 25 when Venus enters Capricorn until January 18, there will be four planets in Saturn-ruled Capricorn. At a minimum these energies could put the brakes on the market making new highs.

While Jupiter’s energy is expansive and optimistic, Saturn is more realistic and grounded in fundamentals. Saturn is in Libra now, seeking to balance what has become out of balance. Saturn’s energies will be particularly prominent in January as it turns retrograde January 13, two days before a Solar Eclipse in Capricorn that conjoins the USA Pluto which is located in the sector of the USA chart representing the financial system. The eclipse occurs the same day Mercury turns direct in Capricorn. At the end of the month, Saturn will square Pluto for the second time.

One thing that’s certain in 2010 is that interest rates can only go up from here which will burst the bond, gold, oil, and dollar carry trade bubbles. The deflationistas are in for a rude awakening in 2010 unless the Fed starts taking action now to gradually raise rates and rein in excess liquidity.

Just as companies and individuals who like Saturn’s infamous rings lived beyond the boundaries of their incomes, in 2010 we will see the fallout if Washington still fails to grasp Saturn’s lessons of fiscal discipline required to reform (Uranus) and transform (Pluto) the nation’s financial, healthcare, energy, infrastructure, and military.

The Moon (sentiment) will be in Sagittarius for the first half of the week, conjoining the Sun (New Moon) early Wednesday. The nation is feeling optimistic that economic conditions and their personal circumstances are improving. Wednesday’s CPI could come in higher than expected.

Sagittarius rules foreign matters. The Sun and Moon in Sagittarius squaring Uranus in Pisces (creditors) will put the focus on Dubai World’s $3.52 billion Nakheel bond maturing Monday. Saturn squaring the UAE’s Venus in Capricorn indicates Dubai as well as the federation itself will seek to delay payment to creditors, pushing banks to negotiate a deal. On December 21, 100 bank creditors are scheduled to meet with Dubai World officials for restructuring talks.

The Fed and its Chairman will be the focus on Wednesday when the FOMC releases their statement on monetary policy following a two day meeting. The Fed is unlikely to make any meaningful changes to their November 4 statement. On Thursday the Senate Banking Committee is scheduled to vote on confirming Ben Bernanke to a second term as Fed Chairman before his nomination goes to the full Senate for a vote. The Committee will likely approve him, but Bernanke’s confirmation faces further delays and obstacles.

Monday and Wednesday look to be the biggest moving days in a market that is starting to stall out, creating choppy conditions.

Monday, December 14, 2009
Positive bias, but Uranus can create unexpected surprises that can take the market in either or both directions.

Tuesday, December 15, 2009
Slightly up early then becomes choppy/mixed to negative.

Wednesday, December 16, 2009
Negative.

Thursday, December 17, 2009
Negative trend bias; choppy/mixed conditions (strongest in the late morning).

Friday, December 18, 2009
(Quadruple options expiration.) Choppy/mixed to moderately positive.

WallStreetWeather.net Forecast For Week Of December 6, 2009

Summary Of Last Week’s Influences:
In last week’s Forecast I wrote that “expect the unexpected” would be the mantra as Uranus appeared to be motionless in the sky.

Friday’s employment report demonstrated that the shocks, surprises, and unexpected events that Uranus brings can go either way and to either extreme. November nonfarm payrolls decreased by 11,000 and the official unemployment rate decreased to 10% compared to Wall St’s expectation of around 125,000 jobs and 10.2% unemployment. This was the lowest number of job losses since the recession officially began in December 2007. It’s good to be wrong when the news is positive!

What gives credence that this could be more than a onetime freaky Uranus event or what Wall St terms a “rogue” month (another description of the erratic energy of Uranus), is September and October’s reports were revised to reflect a much lower decrease in the number of jobs lost. The number of hours worked rose very slightly. The number of temporary workers, a sign that usually leads to permanent positions, has been increasing since July.

President Obama was correct to be “cautiously optimistic” about Friday’s good news as one month’s report could very well get overshadowed by a couple of worse reports before sustained improvement begins. And underneath the headline number is the sobering statistic that the number of people out of work for more than six months has reached record levels. In “Main St. Over Wall St. by Q3 2010” I wrote that “employment should begin to show signs of growth by the second half of 2010.”

Initially Wall St. was happy with the jobs report, pushing the indices to new 2009 highs shortly after the open Friday. But then the Street realized that a better than expected job report is a sign that the Fed will have to take measures to pull in what CNBC’s Bob Pisani calls the “ocean of liquidity,” (Uranus in Pisces the ruler of oceans and bubbles) fueling the risk trade. The Dow dropped almost 205 points from its intraday high, joining the NASDAQ and S&P in negative territory for a good portion of the day.

The dollar reversed, dropping below $1.50 against the euro, and the yield on the 10 year note went from 3.203% Monday to close at 3.483% Friday. After reaching a nominal high of $1,227.50 Thursday, gold closed down almost $50 on Friday. The major indices still closed the week with a slight gain, but true to form Uranus brought several market reversals during the week.

The health of the consumer was a concern last week as Black Friday sales and November same store sales were not as strong as anticipated. With the Moon in Taurus last Monday, banks got off to a strong start for the week. Bank of America (BAC) was the star of the show after it announced Wednesday the Treasury agreed to allow the bank to repay the $45 billion in TARP, fulfilling Ken Lewis’ wish to retire after the TARP had been repaid.

There was the surprise announcement of GM CEO Fritz Henderson’s abrupt departure from the company and Fed Chairman Bernanke’s Senate confirmation hearing. Unlike the first time when he was confirmed by voice vote, Bernanke faces a rough road ahead and might end up being called “acting Fed Chairman” for a time while the Senate delays the vote.

President Obama announced his Afghanistan strategy Tuesday evening, surprising and annoying members of both parties with an increase of 30,000 troops operating under a timetable that could start bringing the first troops home beginning in July 2011, the time of the USA’s next Mars return.*

An article in today’s New York Times describes Veteran’s Day as the “turning point” during the President’s three month Afghanistan review that led to the “escalate-then-exit strategy.” Mars in Leo was conjoining President Obama’s Sun, boosting his confidence to act on formulating a military strategy that would meet his objectives. Neptune represents our beliefs. On November 29, as the Sun in Scorpio conjoined his Neptune, President Obama prefaced his decision to his national security team with the statement: “I’m not asking you to change what you believe, but if you do not agree with me, say so now.” Stationary Uranus was also opposing Obama’s Mars in Virgo which you can read about in my post on Afghanistan.

The motto of Uranus and Aquarius is “I know” which is the meaning of the Latin origin of the word science. Mercury squaring Uranus Monday brought news that CERN’s Large Hadron Collider became the world’s highest energy particle accelerator as it smashed the world record for accelerating subatomic particles in preparation for attempting in 2010 to recreate conditions that existed when the universe was “born.”

Summary Of This Week’s Influences:
Friday’s market behavior served as a mild warning that the rally in stocks, commodities, and bonds has been fueled by zero interest rates and excess liquidity. The very thought of any economic improvement that could cause this ocean of liquidity to be contracted has the market concerned.

Bloomberg reports that investors are “waiting for BOB” (Bolt Out of the Blue) event to occur such as Dubai World (considered a “mini BOB”) that would also cause dollar shorts to cover. The Dubai government’s announcement earlier this week that it is not obligated to support Dubai World is an example of why financial markets should not assume governments will always provide unlimited and indefinite support.

Mercury entered Capricorn December 5 until February 10. Capricorn is ruled by Saturn, injecting a cautious and serious tone into thoughts and communications. Mercury in Capricorn is concerned about fundamentals, not fluff. Mercury will be spending a long time in Saturn-ruled Capricorn due to being retrograde December 26 to January 15, 2010. (More about this in an upcoming post.)

On Monday Mercury will conjoin Pluto in Capricorn and square Saturn in Libra which could bring news about government debt, the government’s relations with financial institutions, and financial regulatory reform measures. Financials and insurance companies are highlighted.

The Sun in Sagittarius harmonizes with Mars in Leo Thursday, heating up asset price bubbles and overinflated expectations that markets can still party on.

President Obama will give a speech on the economy Tuesday where he is expected to outline his ideas for creating jobs. I think the quickest job creator would be to put a one year provision in the tax code that would allow companies to fully expense capital improvements.

Monday, December 7, 2009
Swings between negative to choppy/mixed to moderately up.

Tuesday, December 8, 2009
Negative.

Wednesday, December 9, 2009
Positive trend bias; strongest in afternoon.

Thursday, December 10, 2009
Positive trend bias, but concerns grow that asset prices have become overinflated.

Friday, December 11, 2009
Mixed to moderately up early before turning lower.

*When Mars in Gemini returns to the exact degree it was when the USA was born. See my Afghanistan post for more information.

Ben Bernanke & Fritz Henderson Refuse To Flow with the Winds of Change

Published by WallStreetWeather.net
When a planet from Earth’s vantage point appears to be stationary and change direction, its energies are more pronounced. Uranus the planetary energy of shocks, surprises, shakeups and dynamic change, was stationary in the sky from November 28 to December 4, 2009.

Uranus stationed direct on December 1, the day of the Full Moon in Gemini. The Full Moon marks a culmination point in the lunar cycle, as the Moon’s bright light illuminates issues we’re aware of that need to be resolved.

Gemini is symbolized by the twins. Last week the careers of two leaders hung in the balance. One has exited the executive suite and the other is battling to hold on to not only his position, but the powers of the institution he leads. The Sun represents an individual’s career and reputation. Both of these men were born with the Sun and Mercury in Gemini’s opposite sign Sagittarius.

As the energy of communication and movement, Mercury and Gemini rule automobiles. “Shock” and “surprise” are the words the Financial Times used to describe the mood within GM after Tuesday’s unexpected announcement of CEO Fritz Henderson’s immediate departure from the company. The “pressure from an assertive and mercurial board” put in place after the US government took majority control of GM created disagreements between Henderson and Ed Whitacre, the retired chief executive of AT&T who became the government appointed Chairman of GM in June.

In a post written on April 5, 2009, I wrote: “Based on the transits to his chart, I think it is unlikely Henderson will be running GM for very long.” Saturn square Pluto describes the difficult transition from bankruptcy to the restructuring necessary to rebirth a new GM constrained by 68% US government and 8% Canadian government ownership. The exact alignment of Saturn and Pluto on November 15 affected Henderson’s progressed* Saturn in Capricorn.

Saturn represents contraction, and GM is experiencing difficulties shedding unpopular brands. Deals to sell its Saab and Saturn divisions fell through. Last month GM’s board reversed Henderson’s short-sighted decision to sell control of GM’s Opel unit to Canadian auto supplier Magna International. Additionally, the board felt Henderson’s timetable to take GM public again in 2010 was overly optimistic.

The Sun and Saturn represent the father; Fritz Henderson was born with the Sun conjoining Venus (finance) in optimistic Sagittarius, and Mercury (siblings) conjoining Saturn in Sagittarius. Henderson is a GM “lifer” just like his father and brother, beginning his career at GM in 1984 as a senior financial analyst to becoming Vice Chairman and Chief Financial Officer in 2006.

Sagittarius is ruled by Jupiter, and Henderson’s Jupiter in Scorpio opposes Mars (action) in Taurus and squares Uranus (change) in Leo. With these planets in fixed signs, dynamic change does not come easy for Henderson even when the pressure reaches the boiling point.

As Paul Ingrassia writes in The Wall Street Journal, Henderson’s idea of change was to name “a new executive team that consisted entirely of other GM lifers.” Uranus is the outsider, the rebel needed to go into GM and shake things up. Uranus in visionary Pisces describes the best CEO for GM would be a visionary leader in the mold of Steve Jobs to build quality vehicles that are functional, stylish and totally cool.

Henderson launched a “tell Fritz” web page to make GM appear more responsive to consumers. But when asked by a consumer to explain why GM did so poorly in a recent Consumer Reports survey, Henderson’s response was: “We were genuinely disappointed in our results. We simply must produce better results.” Saturn and Uranus opposing Henderson’s natal Mercury and Saturn reflect that Henderson failed to grasp that GM requires a lot more to be viable than the largely superficial changes he was willing to make.

As I wrote in “Detroit Automakers’ Bailout Plans and Prospects,” it is GM’s “bean counter bureaucracy” that smothers its potential to make great automobiles. Mars in Leo began impacting Henderson’s planetary trio at the same time as Saturn/Pluto last month. During breakfast with Ed Whitacre on Tuesday, Henderson asked Whitacre if he supported him. Whitacre said he did not. Mars in Leo exactly opposed Henderson’s Jupiter and the Gemini Full Moon opposed his natal Venus, reflecting that action would be taken concerning the tremendous philosophical differences the two had over how GM should be restructured. Fritz Henderson left GM at lunchtime.

Fritz Henderson was born with the Sun square Pluto in Virgo, but he was no match for Ed Whitacre who has the Sun in Pluto-ruled Scorpio square Pluto in Sun-ruled Leo. Mars ruled Scorpio before Pluto was discovered, and Whitacre has Mars in its “home” sign Aries harmonizing with Pluto in Leo. Whitacre’s planetary energies reflect an intensely strong-willed individual who is not afraid to go after what he wants (which includes killing rattlesnakes). Whitacre took over as CEO until a replacement for Henderson is found which Whitacre anticipates could take up to one year. Whitacre is right that he will be CEO for no more than one year, but he might not be Chairman by that time either.

GM was founded when the Sun was squaring Pluto, and Uranus turned direct Tuesday opposite GM’s Virgo Sun. Saturn and Libra are affecting GM’s progressed Sun in Capricorn. The Sun represents the leader of the company, and these planetary transits reflected GM’s abrupt change in leadership and the many changes taking place as part of its transformation.

The Federal Reserve is also undergoing a dramatic transformation as Saturn and Pluto affect the Fed’s Sun in Capricorn opposite Pluto in Cancer, along with the sector of the chart representing its reputation.

Thursday’s confirmation hearing to appoint Ben Bernanke to a second term as Fed Chairman did not go smoothly. The night before the hearing Sen. Bernie Sanders (I-VT) put a hold to block Bernanke’s nomination that would require 60 votes to override. Sen. Jim Bunning (R-KY) told Bernanke at the hearing: "You are the definition of a moral hazard. I will do everything I can to stop your nomination and drag out this process as long as I can."

In “Bernanke’s Confirmation ‘Not Necessarily’ A Done Deal,” I pointed out that with Uranus turning direct squaring his Jupiter, Bernanke places too much confidence in his academic theories. Uranus in Pisces is a wakeup call that new policies are needed now.

Uranus represents sudden and extreme price movements in either direction and Pisces rules bubbles. Saturn and Uranus squaring Bernanke’s Jupiter (foreign nations) shows there’s no change in Bernanke’s philosophy that carries on the Greenspan mantra that you mop up asset price bubbles after they pop. (This is why it is understandable Sen. Bunning made a Freudian slip, calling Bernanke “Greenspan” during the hearing.) First the Fed Chairman needs to be able to identify the bubble in the dollar carry trade he helped to create.

During questioning Bernanke said: “We do not see, at this point, any extreme mis-evaluation of assets in the United States. It is really not the United States’ responsibility to make sure there are no misalignments in every economy in the world when those countries have their own tools to address them."

Each time Bernanke is asked why the Fed agreed to pay AIG’s counterparties at par he has a different excuse. Thursday’s latest was that “most of the firms were foreign and we had no authority over them.” Bernanke said that “UBS offered a 2% discount if and only if all the counterparties accepted one and they did not.” Even Sen. Dodd who told Bernanke he supports his nomination, became frustrated with Bernanke’s responses to questions about AIG. Bernanke told him that after the Fed prevented AIG from going bankrupt the Fed lacked the leverage to threaten bankruptcy if the counterparties wouldn’t take haircuts. Yet a report by the inspector general overseeing the TARP criticizes the Fed for asking rather than demanding the banks take a haircut, a stark contrast to the Fed playing hardball with the banks to take TARP as one example.

The uniform message the Senate Banking Committee presented to Bernanke Thursday was that Congress and the public has had their fill of Fed enabled bubbles and the painful busts that follow. This is consistent with the cycle of Saturn opposing Uranus that began on Election Day 2008 and will continue through the summer of 2010. This cycle is about shaking up the status quo through dynamic changes that create a new foundation sustainable for the long term (Pluto in Capricorn).

Saturn represents life’s lessons, and it is clear that Fritz Henderson and Ben Bernanke have yet to learn that failure to adapt to the winds of change can cost you your job.

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

Frederick “Fritz” Henderson: November 29, 1958 time unknown Detroit, MI
Edward E. Whitacre: November 4, 1941 time unknown Ennis, TX
GM Founded: September 16, 1908 time unknown Flint, MI
Ben Bernanke: December 13, 1953 time unknown Augusta, GA
Federal Reserve: December 23, 1913 6:02 PM EST Washington, DC

Federal Reserve Won’t Prevent Bubbles Because “It Would Not Be Popular”

Published by WallStreetWeather.net

“We nonetheless think someone should say that, as a matter of accountability for the financial crisis and looking at the hard monetary choices to come, the country needs a new Fed chief.” – “The Bernanke Record,” Wall Street Journal lead editorial December 3, 2009

On the day of the Senate Banking Committee hearing to confirm Ben Bernanke to a second term, The Wall Street Journal has reached the same conclusion that I’ve been blogging about for over two years: Ben Bernanke is not fit to be Fed Chairman. But I’ll go one step beyond the Journal and say that the entire Board of Governors and the regional bank presidents should be removed for enabling Bernanke to continue to carry out Greenspan’s bubbles.

WSJ: “The real problem is Mr. Bernanke’s record before the panic, with its troubling implications for a second four years. Mr. Bernanke was the intellectual architect of the decision to keep monetary policy exceptionally easy for far too long as the economy grew rapidly from 2003-2005.”

Bernanke joined the Board of Governors in 2002, encouraging Greenspan to keep interest rates low even as the housing and credit bubbles were spinning out of control. As the Journal points out in yesterday’s front page story (“Fed Debates New Role: Bubble Fighter”), the Princeton professor first attracted the central bank’s attention when he delivered a presentation at the Fed’s 1999 Jackson Hole gathering where he warned the Fed against trying to prick asset price bubbles.

WSJ: “This, too, might be forgivable if Mr. Bernanke had made any attempt in recent months to acknowledge the Fed’s role in the mania. Mr. Bernanke and Vice Chairman Don Kohn have formed an intellectual moat around the Fed, blaming the credit bubble on the ‘global savings glut’ that they themselves helped to create.”

From Bernanke to the regional bank presidents, no member of the Federal Reserve has admitted that mistakes were made. Instead Bernanke and the Fed have defended their actions by trying to trigger people’s fear-based emotions into believing that the Fed’s actions saved the financial system from a catastrophe greater than the Great Depression, refusing to admit that their policies enabled the crisis in the first place!

Bernanke strongly disagrees with legislation that would remove the Fed’s power to supervise banks and regulate consumer finance, yet refuses to admit that the combination of overly accommodative monetary policy and lax supervision created a super spiked punchbowl that has left the nation with a huge hangover that will take several years to wear off.

The Fed claims its ability to effectively carry out monetary policy will be affected if Congress removes its authority to supervise banks, claiming it will no longer have access to the “economic color” provided by the banks. But there is nothing in the financial legislation that would hinder the Fed’s ability to communicate with banks or anyone else it chooses to receive “color” about market conditions.

In “Asset Inflation: The Missing Indicator In Economic And Monetary Policy,” I described how easy it is to determine when rising asset prices are driven by inflation rather than real increased net worth. Asset price bubbles require collateral to grow. The reason why the housing bubble became the biggest bubble that caused the greatest financial crisis since the Great Depression is that real estate can be purchased with 95% leverage vs. 50% for stocks. And once one lender was willing to stretch the rules regarding who would qualify for a mortgage, who do you think realtors would steer buyers too? As more lenders stretched the rules, all had to follow or be exluded by the markets for being too cautious.

No matter what the asset class, leverage creates what the above cited WSJ “Bubbles” article calls “a self-feeding loop” where increased leverage creates increased collateral values which in turn again increases the ability to leverage more.

Real estate became the most dangerous bubble of all because no one believed that real estate prices could ever decrease in value on a nationwide basis. The Fed was dead against increasing margin requirements on securities. Beyond the Fed, no one in government wanted any kind of restrictions placed on real estate purchases.

WSJ: “The hard part, the time when central bankers earn their fame, is when they have to take the money away. We see little in the chairman’s policy history or guideposts to suggest he will be willing to endure the criticism that will come with tightening money amid a lackluster recovery.”

It has been 30 years since a Fed Chairman had the guts to go against the grain and raise interest rates in spite of the highest rate of unemployment since the Great Depression. Paul Volcker chose to ignore the Fed’s dual mandate to do what was politically unpopular and painful in the short term in order to create long term economic growth.

In an interview with CNBC’s Maria Bartiromo (Part I and Part II) yesterday, St. Louis Fed president James Bullard* said that the Fed has debated about how to react to asset price bubbles for the last 15 years. “The question is what to do? Quashing a bubble in the middle of good times is not a very popular thing to do.”

The Fed resists any attempt by Congress to alter its purpose and scope, claiming it would be a threat to a “strong and independent Federal Reserve,” yet here we have an entire Federal Reserve System that enables an environment to allow bubbles to form in the first place, but lacks the courage to carry out its duties because its members put their own personal interests first! Then when the economy suffers a train wreck, the Fed rescues Wall St. at Main St.’s expense because as the banks’ chief regulator, their loyalty is to stabilize the banking system.

The Fed is not really independent since the President nominates and the Senate approves the Chairman and the Board of Governors while private bankers choose the six of the nine directors that comprise each of the 12 regional Fed banks. The Fed’s independence is entirely up to the Chairman and its members desire to do what it best for the health of the entire economy. From a monetary policy perspective this would mean keeping interest rates on a steady course, balancing the interests of borrowers and savers. Asset price bubbles are born when investors become frustrated by the abysmally low rate of return received on safe instruments such as FDIC-insured bank certificates of deposits.

WSJ: “Mr. Bernanke is assuring the world that, this time, he knows how and when to start removing this stimulus.”

The Fed knows zero rates and excess liquidity has spawned another asset price bubble in equities, commodities (especially gold), Treasuries, and has caused the desecration of the dollar. Yet the Fed continues to fuel the hot air balloon by telegraphing that “interest rates will remain low for a considerable period of time.”

Never has the Fed injected so much liquidity into an economy running record debt levels. Bernanke believes he knows when to begin the Fed’s exit strategies, but Bernanke’s well known obsession with the Great Depression will make him reluctant to tighten until every economic indicator is solidly green.

The unfortunate irony here is that the Fed’s actions will delay the green light from being steadily solid anytime soon because the economy will take a few steps backward first when Bernanke’s bubble bursts.

*Bullard be a voting member of the FOMC in 2010.

Guerrilla Warfare Is The Key To Win Afghanistan

Published by WallStreetWeather.net
The exact alignment of Saturn in Virgo opposite Uranus in Pisces (2008-2010) for the first time on Election Day indicated that no matter who was elected President of the United States, the true purpose of the winner’s job would be to clean up the mess accumulated during previous administrations as these signs represent the transition from the ending of one cycle to the beginning of a new one.(1)

Saturn in Virgo represents old issues and the status quo who have engineered the system to work efficiently for them at the expense of the majority. Like a water filter that needs to be replaced because the water flow has become restricted to a small and slow stream, Uranus in Pisces recognizes that by changing the filter, water will once again flow out of the faucet in a rapid and strong stream so there’s enough for everyone.

Mars is the planetary energy of war, the military, and weaponry. As the Commander-in-Chief of the US military, the President approves what the nation’s military involvements and strategies should be. The USA was born with Mars in Gemini in the sector of the chart representing our relationships with other nations. Mars here represents taking an active and aggressive stance toward relationships, reflecting the numerous US military bases throughout the world, and our current wars on twin fronts in Afghanistan and Iraq.

Mars forms a challenging alignment to Neptune in Virgo in the sector of the USA chart that represents foreign lands and foreign people as well as philosophical and religious beliefs. Neptune’s energy can be elusive and foggy, creating confusing and unclear military objectives. Mars square Neptune prefers to rely on faith that military action will be successful versus the reality of facts, fundamentals, and finances. Neptune rules drugs, oil, and communism. It also represents idealistic beliefs and the “excuse” needed to “justify” and “sell” war to the public. We’ve had wars on communism, wars to access/protect oil, and the war on drugs.(2)

It is this setup in the USA chart that explains why the military strategy of the last several decades has been based on the premise of fighting our enemies on their home turf. Both Gemini and Virgo are ruled by Mercury, the planet of communication. Neptune rules propaganda and the world of illusion and deception. The President and the military want to convince the public that waging war abroad will prevent our enemies from attacking us here at home. Yet we have experienced “twin” incidents within the last month of attacks and security breaches coming from within. Army Major Nidal Hasan killed 13 and wounded 30 at Fort Hood November 5 when the Army and FBI knew he had sought to establish ties with al Qaeda.(3) Michaele and Tareq Salahi crashing the White House state dinner November 24 played out the USA Mars/Neptune square through the aggressive effort of individuals seeking Neptunian glamour while illustrating how easy it would be for someone with malevolent objectives to harm the President.(4)

The irony of this military strategy is that Neptune is about breaking down boundaries and borders. Neptune energy demonstrates how everyone and everything is interconnected.(5) In the “war on drugs,” guns are easily obtained in the US and smuggled into Mexico by the drug cartels. These guns will be used in states that border Mexico to commit kidnappings and killings on people in the US involved in the drug trade while also taking the lives of innocent people who happen to live in the neighborhood. The Mars/Neptune alignment reflects the belief that has developed into a religious fervor that not only should there be no barriers placed on acquiring guns, but neither should there be any boundaries on where people can carry them.

Barack Obama was born with Mars in Virgo exactly conjoining the USA Neptune and squaring the USA Mars. It is his job to take action to clean up the wars and economic mess inherited from his predecessors (Saturn) in order to make the changes needed to move the nation forward (Uranus). With Mars in Virgo in a harmonious alignment with natal Saturn in Capricorn, the President can shift the USA’s Mars/Neptune to precise and realistic strategies to deal with our foes. Or he could choose to waste his energies and continue on a path similar to his predecessors.

Uranus in Pisces turning direct today opposite the President’s Mars and the USA Neptune along with the Full Moon in Gemini conjoining the USA’s natal Uranus in the sector of military personnel brings sudden change and new awareness regarding the wars in Afghanistan and Iraq. Uranus calls for unusual and radical tactics that break free from traditional strategies. With the USA’s natal Uranus harmonizing with Saturn in Libra, the strategy must match that of the enemy. Hit and retreat. A guerrilla enemy must be fought with a guerilla force.

Saturn rules history, and at the time of 9-11, Saturn in Gemini was opposite Pluto in Sagittarius, reflecting the USA had entered a recession. When the first plane hit the World Trade Center, Pluto in Sagittarius exactly conjoined the USA Ascendant(6), reflecting the nation’s profound loss and the repercussions that would affect the nation in the years to come. Saturn in Gemini opposite Pluto in Sagittarius indicated that the multiple attacks were executed by terrorists who had trained and come from abroad. At the time the first plane hit the Twin Towers, Pluto and Saturn prominently appeared over Afghanistan and Pakistan when the transiting planets that day are displayed on a world map.

The Bush Administration had been planning on ousting the Taliban from Afghanistan prior to 9-11, and on October 7(7), US and allied special forces began bombing targets in Afghanistan, hunting for Osama bin Laden and other al Qaeda operatives, believed to be hiding along the Afghan/Pakistan border. Only two decades ago, the US had provided aid and training to the Mujahedeen (“those who engage in jihad”- which included bin Laden) who were fighting the Soviet invasion of Afghanistan.

The US military dubbed the war in Afghanistan “Operation Enduring Freedom” (OEF-A) and the only thing that has been enduring is the length of the US involvement in Afghanistan. With Saturn retrograde in Gemini and Mercury retrograde in Libra, the mission in Afghanistan has shifted from capturing the terrorists to full blown war and “nation building.” Venus in Virgo conjoining the USA Neptune/Mars reflects that the US military and even the DEA is fighting the drug trade in Afghanistan. Venus squaring Saturn and Pluto at the time reflects the unknown amount of money that has been poured into this operation and the corrupt and fraudulent government of President Hamid Karzai.

In mid 2006, the USA’s progressed(8) Mars turned retrograde for the next 80 years, reflecting the public’s decreasing support for war. The USA’s progressed Mars conjoining the progressed Mercury of the OEF-A chart indicates that a review and reexamination of our military actions in Afghanistan and around the globe is long overdue.

Saturn and Pluto squaring the USA Venus now indicate that the cost of expanding the war can no longer be operated “off budget.” Republicans and “conservative” Democrats who have done everything possible to kill healthcare reform because they are “concerned about the deficit” are also against any tax increases. Saturn squaring Pluto is forcing what’s been kept off budget to become part of the deficit. Pluto rules taxes, and now these members of Congress could be forced to put their money where their mouth is and vote for a war tax if they want to avoid being portrayed as total hypocrites. The power of the purse could end up becoming the biggest deterrent to war when there are so many important domestic priorities that could help Americans and the nation begin to recover from the fallout of the financial crisis.

Uranus stationing direct today to the USA Mars/Neptune is a wakeup call that we can no longer afford war. Nor can we afford to “liberate” countries operated by corrupt governments and extremist groups when we have not dealt with the war within.

Mars will be retrograde December 20 to March 10. New military endeavors launched during this time are less likely to turn out as planned and can backfire on the initiator. Mars retrograde would favor a retreat rather than an escalation of troops.

We lost the war in Vietnam and the Soviets lost the war in Afghanistan. First President Obama must succinctly state what the objective is and what the exit strategy is. I think the only way the US has any chance of achieving the public’s perceived objective (i.e. get the terrorists responsible for 9/11) would be to have special forces engaging in guerrilla warfare and forget about nation building and drug enforcement activities.

Courage and confidence describes the energy of Leo. During the time Mars is in Leo it will be conjoining President Obama’s natal Sun. It takes more courage and confidence for a leader to know when to stop a war than when to start it. Perhaps President Obama will consider that as he accepts the Nobel Peace Prize next week.

(1) As an example, the Sun in these signs each year marks a transition period as they end the old quarter and season. (In the northern hemisphere, the Sun in Virgo marks the end of summer and the Sun in Pisces the end of winter.)

(2) Virgo rules health. With Mars squaring Neptune in Virgo, every major dis-ease has been elevated to war status - “war on cancer, heart disease,” etc. War does not heal.

(3) 1:30 PM CST Ft. Hood, TX. The Moon in Gemini was conjoining the USA Mars/Neptune. Hasan was born September 8, 1970 (time unknown Arlington, VA) with Mars square Neptune. Hasan’s natal Mercury in Virgo conjoins the USA Neptune and Ft. Hood’s natal Sun. (Ft. Hood was founded on September 18, 1942 time unknown.)

(4) Uranus in Pisces opposing the USA Neptune/Mars now. The transit of Venus square Neptune at the time reflects the couple’s intentions were for personal publicity and financial gain.

(5) Neptune in Aquarius since 1998 represents how the growth of the internet has broken down all types of boundaries and barriers.

(6) USA: July 4, 1776 5:10 PM Philadelphia, PA. On September 11, 2001 the first attack on the World Trade Center occurred at 8:46 AM EDT. The Ascendant is the zodiac sign (Sagittarius) rising on the eastern horizon at the time the USA was born.

(7) October 7, 2001 12:27 PM EDT Washington, DC (8:57 PM AFT in Kabul).

(8) A mathematical calculation that moves the planets forward in time.

Related Posts:
“Uranus, Mars and the Supreme Court’s Gun Control Ruling”
“AIG, Lehman, and Merrill under a Harvest Moon: Parallels to the Panic of 1907” describes how Uranus in Pisces conjoining the September 15, 2008 Full Moon on the USA Mars/Neptune rattled Wall St.

Barack Obama: August 4, 1961 7:24 PM Honolulu, Hawaii