Summary Of Last Week’s Influences:
As previously described, the combination of Jupiter opposite Saturn, Venus opposite Pluto, and the Moon in Venus-ruled Libra triggered a selloff Monday led by bank stocks over concerns about the troubles in Europe’s bank sector moving beyond its boundaries and spilling into the US market.
Spain replaced Greece as the Eurozone focus after the Bank of Spain last Saturday took over Catholic church owned CajaSur and replaced most of its management including its Chairman priest after it refused to merge with Unicaja. On Monday four troubled cajas (savings banks) agreed to merge to form Spain’s fifth largest bank.
On Thursday Spain’s parliament approved an additional $18.5 billion in spending cuts by one vote. The indices were moderately negative Friday until Fitch announced it had downgraded Spain’s credit rating from AAA to AA+.
Neptune rules credit, and Neptune’s energy is pronounced as it turns retrograde* May 31. Right now transiting Neptune in Aquarius is squaring Spain’s natal Sun (self-identity) in Scorpio, the sign representing debt. Spain will continue to experience economic difficulties as Jupiter, Saturn, and Uranus square its natal Mars in Cancer during the summer. Cancer rules the sector of Spain’s chart representing the work force. Saturn in Libra will square Spain’s natal Moon in Cancer and conjoin Spain’s natal Venus and Pluto in the fourth quarter and during most of 2011, reflecting tight employment conditions and a severe contraction in public benefits.
Pluto in Capricorn is conjoining Spain’s progressed Sun now and the June 26 Lunar Eclipse will conjoin the Sun, reflecting that Spain will have to enact far greater austerity measures to prove to the world that it has the discipline to get its debt under control.
Late June is a crucial time as the Lunar Eclipse conjoins Pluto and both will oppose the USA’s natal Venus and Jupiter in Cancer. Around this time is when investors might start demanding higher Treasury yields.
Thursday’s Full Moon in Sagittarius generated a Jupiter-sized rally after China called reports that it is considering selling some of its Euro bond holdings “groundless.” Reflecting the energies of the Sag Full Moon, the OECD raised its forecast for global growth.
Despite the Full Moon fever, May was a bad month for the indices. The Dow and S&P put in their worst May performances since 1962. The Dow has now lost almost 900 points since reaching its 2010 high on April 26.
As I wrote in the Full Moon post, BP’s “top kill” would not be successful in closing the leak. And now the Deepwater Horizon spill has surpassed the March 24, 1989 Exxon Valdez oil spill. Neptune rules oil, Saturn loss, and Uranus represents unexpected events that are meant to awaken our consciousness. At the time of the Valdez spill, Neptune was conjoining Uranus and Saturn in Capricorn. Jupiter was opposing Saturn in 1989 and one Jupiter/Saturn opposition later when the Deepwater Horizon rig exploded, Saturn in Virgo was opposing Uranus in Neptune-ruled Pisces and forming a stressful alignment with Neptune in Uranus-ruled Aquarius.
As I have written, planets aspecting the USA’s natal Mars in Gemini square natal Neptune in Virgo tend to trigger financial panics, military action related to oil. Mercury was exactly opposing the USA’s natal Neptune and squaring Mars during the Exxon Valdez spill. At the Deepwater explosion, Jupiter in Pisces was opposing natal Neptune and squaring natal Mars, indicating that this would be the largest (Jupiter) oil (Neptune) spill in US history. Mercury was retrograde in Taurus at the time of the Deepwater Horizon spill, reflecting that this will be the longest and costliest spill to clean up. The USA’s progressed Moon is in Virgo now and exactly squared the USA’s natal Mars on May 26 and will conjoin natal Neptune June 27, reflecting the public’s anger and disillusionment that the spill is not been contained and cleaned up.
Summary Of This Week’s Influences:
This holiday shortened week is the only week over the next several weeks featuring only one planetary alignment and no planets changing signs. Except for Friday, volatility could be somewhat more subdued compared to what we’ve experienced over the past month.
Warren Buffett is all too eager to appear on CNBC or even the occasional soap opera episode, yet he refused to appear before the Financial Crisis Inquiry Commission unless he was subpoenaed.
Berkshire Hathaway (BRK.A/B) is a major shareholder of Moody’s (MCO). On Wednesday, Buffett along with current and former Moody’s officials will testify on the “Credibility of Credit Ratings, the Investment Decisions Made Based on those Ratings, and the Financial Crisis.” Of far greater interest than the ratings agencies would be to question Buffett about what inside information he had before Berkshire took a $5 billion stake in Goldman Sachs in September 2008.
Consensus estimates project an additional 500,000 jobs were added when May employment numbers are released Friday. I hope I’m wrong, but even though the number should reflect steady job growth, I think it is a bit high at this juncture. Saturn in Virgo (April 7 to July 21) could keep job growth more subdued although the number of temporary workers should continue to gain.
Mars in Leo opposes Neptune in Aquarius Friday which tends to be a negative influence on the market. With the Last Quarter Moon in Neptune-ruled Pisces, some of the factors that could cause the market to be jittery could involve rumors and news related to securities fraud, scandals, credit ratings, and talk of creditors having to take haircuts. There could be attacks or explosions of oil and gas pipelines. Mars opposite Neptune could bring threats or actual military action related to oil or angry leaders (Leo) engaging in sabre rattling melodrama.
Pisces and Neptune rule drugs, and ASCO’s annual meeting begins Friday. Mars opposing Neptune could shine the spotlight on the importance of eliminating inflammation in the body in treating cancer.
Tuesday, June 1, 2010
Strongest early and then weakens as the day progresses; closes negative.
Wednesday, June 2, 2010
Choppy/mixed to negative.
Thursday, June 3, 2010
Choppy/mixed to positive.
Friday, June 4, 2010
Negative.
*Planets do not really move backwards, but appear to from Earth’s vantage point.
** A mathematical calculation that moves the planets forward in time as a method of prediction.
Spain: November 22, 1975 12:45 PM CET Madrid
USA: July 4, 1776 5:10 PM Philadelphia
Deepwater Horizon explosion: April 20, 2010 9:53 PM CDT 28N44’20 88W’23’23’(off the coast of Venice, Louisiana)
Exxon Valdez spill: March 24, 1989 12:04 AM YST Valdez, Alaska
Economic and Geopolitical Influences During the Sagittarius Full Moon: May 27 – June 11, 2010
Published by WallStreetWeather.netThe Full Moon can be an emotionally intense time as existing issues reach a culmination point. The Moon’s bright light illuminates information that had not previously penetrated our consciousness. The Moon’s opposition to the Sun reflects the conflict between what we thought we knew vs. the information other people and events are making us aware of.
With the Moon in Sagittarius opposite the Sun in Gemini, there’s a need for greater knowledge and understanding about what’s happening in the world than simply being bombarded by the information overload coming from the Sun in Gemini that operates at a more superficial level.
If events seem to take on larger than life proportions now it is because Sagittarius is ruled by Jupiter, the planetary energy of abundance and exaggeration. This energy is enhanced as Thursdays* are ruled by Jupiter. The Full Moon’s restless tendencies are expanded by Sagittarius’ need for freedom to explore. Travel, foreign interests and trade, ethical and legal matters, education, publishing, and religious issues are Jupiter/Sagittarius themes that could be in the spotlight now.
Just as the Moon pulls the tides and our emotions, the Sun released a coronal mass ejection on May 24 that could bring geomagnetic storms that disrupt the Earth’s magnetic field May 27 and 28, potentially causing interference with satellites and communications devices. Heightened solar activity tends to correlate to increasing geopolitical tensions and market volatility.
Jupiter in Pisces since January 17 has expanded the ability of Pisces to dissolve boundaries through large scale examples to get us to wake up to the fact that everything in our world is interconnected. Jupiter rules what is foreign and distant. By dissolving boundaries and barriers, Pisces brings what appears to be separated by distance and differences together. Uranus in Pisces has broken down barriers of distance as technology has allowed people to expand their horizons by connecting over the internet.
Corporations and special interest groups have heavily lobbied to convince politicians and the public that any constraints on their interests would erode people’s “freedoms,” resulting in higher costs and economic contraction. Their enormous influence has blurred the boundaries separating members of Congress and government regulators to the extent that they are the ones dictating the rules and writing loophole-filled legislation. Thanks to the Supreme Court, they are free to spend unlimited amounts of money to influence political campaigns.
The sovereign debt crisis in Europe has contracted interbank lending, raising US$ Libor rates which has spooked U.S. markets, fearing it will raise interest rates on trillions of dollars of debt from credit cards to mortgages and corporate loans held by U.S. borrowers. As Jupiter and Saturn oppose each other, Jupiter magnifies Saturn’s fear that problems will spread beyond foreign (Jupiter) borders (Saturn).
As a Sagittarius/Jupiter-ruled nation, Jupiter in Pisces has prompted the U.S. to aggressively lobby Europe to flood the continent with liquidity to prevent the contagion from spreading to U.S. shores. Sagittarius/Jupiter can be hypocritical. Despite the fact that the financial crisis emanated from the US, Geithner and Bernanke are in Europe now preaching to the Eurozone nations how they should put their financial houses in order. The Full Moon conjoins Larry Summers’ Sagittarius Sun, who is calling for an additional $200 billion in government stimulus.
Pisces is ruled by Neptune, and they rule oil, gas and the sea. The massive oil spill caused by the explosion of the Deepwater Horizon oil rig operated by a foreign company is another example of what happens when the boundaries between unlimited freedom to expand horizons (Jupiter) in deep water dissolve (Pisces) the boundaries of regulation and safety as taking too long (Saturn) and being too costly which lead to an explosion of unexpected and unintended results (Uranus) that have far reaching effects into the future beyond the shores of Louisiana and surrounding states.
At the Sagittarius Full Moon, the energies of Jupiter, Saturn, Uranus, and Neptune come together at the opposing end of the spectrum of beginnings and endings.
Since the indices reached their 2010 highs the day Saturn opposed Uranus April 26, volatility has risen and then accelerated since the May 6 “flash crash.” The back to back influences of the oppositions of Saturn and Uranus and Jupiter and Saturn have resulted in the market seesawing back and forth from bearish to bullish and then back again with the moves becoming larger and wilder the closer that Jupiter got to opposing Saturn May 23 and its approaching conjunction to Uranus on June 8.
Saturn’s influence on Jupiter and Uranus has injected fear into the market, pushing down stocks and Treasury yields as investors “de risk.” Saturn’s energy is pronounced now as it appears stationary in the sky through June 2 as it turns direct May 30 after being retrograde since January 13. Saturn’s energy will be particularly strong Saturday afternoon through Memorial Day weekend as the Moon will be in Saturn-ruled Capricorn then. This can create obstacles and delays in travel and communications, so allow extra time to reach your destination and for accomplishing important tasks.
Adding to the influence of Jupiter and the Full Moon is that Neptune’s energy is more pronounced from May 24 to June 7 as it turns retrograde May 31 until November 7. Where Saturn needs defined and concrete structures and facts and figures, Neptune is elusive.
When everything seems very confusing and foggy,* Neptune’s energy is usually active. Fantasy can be presented as fact; euphoria results from rumor or half-truths. Neptune rules bubbles. Saturn’s oppositions to Neptune between August 2006 and June 2007 is when reality began to set in that the era of E-Z credit was contracting. In contrast, Jupiter conjoining Neptune during most of 2009 brought euphoria that has spawned asset price inflation from excess government stimulus and rock bottom interest rates.
As the final sign of the zodiac, Pisces marks the end of a cycle. Tonight Uranus will leave Pisces and enter Aries for the first time in 84 years, followed by Jupiter entering Aries on June 6 after 12 years.*** The Sagittarius Full Moon reflects these new energies as Jupiter and Uranus conjoin in Aries on June 8.
The focus on global affairs during the Sagittarius Full Moon cycle corresponds with Uranus entering the “world point”**** of the zodiac, indicating fast moving developments that have far reaching global effects.
On its own, Jupiter/Sagittarius energy is optimistic and bullish as it is part of the enthusiastic and impulsive fire element. Fire is the symbol of creation, and as the first sign of the zodiac and the first fire element, Aries represents a new beginning. Aries is ruled by Mars, the planetary energy of action. Mars is in Leo the sign of the Sun (life force), so all three signs of the fire element are represented now.
Uranus is the awakener, and in Aries you better not blink or you might miss the action! If you’ve enjoyed the increased volatility and wild intraday moves of the last few weeks, you will absolutely adore the extreme volatility of Jupiter conjoining Uranus in Aries as Jupiter expands Aries desire for risk taking. Rebellious Uranus represents sharp and sudden price spikes that break through support and resistance levels to generate shock value, regardless of what circuit breakers and rules are implemented by the SEC.
Aries wants to be the first to dive in head first. Anything new and untried is viewed as an adventure. But when other planets form challenging alignments between each other or to Jupiter and Uranus, look out below! If U.S. leaders were disturbed by the May 6 Last Quarter Moon plunge and the Dow dipping below 10,000, they are likely to be totally beside themselves by the time we get to late July when Jupiter and Uranus are opposed by Mars and Saturn in Libra and Pluto in Capricorn, all in the early degrees of cardinal signs.
Since Mars rules the military, the combination of Jupiter and Uranus in Aries means that investors might want to follow the military’s lead and research companies contracting with the government on new devices and technologies in the experimental stage that could become the next cutting edge medical treatments, engineering and technological developments. It is also important to follow the Pentagon’s views on issues that affect civilian legislation.
Tensions between the US and North Korea as well as the situation at BP’s Deepwater Horizon are likely to reach a boiling point by the time Mars in Leo opposes Neptune in Aquarius at the Last Quarter Moon in Pisces on June 4. It is likely that BP will be taking orders from the military that will rollout something new and untried to fully plug the well. Clean up efforts should accelerate while Mars is in Virgo June 7 to July 29. Mars in Virgo also represents an increased push for tighter regulatory reforms and more stringent accounting standards.
Besides Mars opposite Neptune bringing action related to oil/gas, chemicals and drugs/pharmaceuticals/biotech, the SEC and/or the Justice Department could be taking action against more cases of insider trading, market manipulation, and securities fraud.
Some of the areas of the world that could be more prominent in the news over the next two weeks due to severe weather conditions, increased geophysical and geopolitical activity are:
USA: Ohio, Kentucky, West Virginia; East Coast, particularly the Carolinas, Georgia, and Florida. (Weather conditions could bring severe thunderstorms with flash flooding.)
South America: Nicaragua, Costa Rica. Colombia, Ecuador, Peru, Chile, BRAZIL (severe storms; earthquake potential).
Germany, Austria, Italy, Greece.
RUSSIA, Chechnya, Georgia, Belarus, Ukraine, Moldova, Romania.
Middle East: Turkey, Saudi Arabia, Iraq, Iran, Kuwait, Yemen.
Africa: Libya, Niger, Nigeria (Mars/Neptune raises potential for pipeline attack), east coast nations (Ethiopia through Mozambique).
Asia: Burma, Thailand, Laos, Vietnam, Cambodia, Singapore, central China, Koreas, Indonesia, Australia.
*Each day of the week is ruled by a different planetary energy: Sunday (Sun), Monday (Moon), Tuesday (Mars), Wednesday (Mercury), Friday (Venus), Saturday (Saturn). Jupiter ruled Thursdays favor personal and professional growth.
**Neptune rules fog and damp and humid weather conditions.
***Uranus will be in Aries until August 13. Jupiter will be in Aries until September 9. Both will re-enter Aries during the first quarter of 2011. Jupiter and Uranus will conjoin in Pisces on September 18 and January 4, 2011. More about Jupiter and Uranus in Aries in upcoming posts.
****The world point or “Aries point” is when planets enter the cardinal (initiating) signs Aries, Cancer, Libra, Capricorn.
USA: July 4, 1776 5:10 PM Philadelphia, PA
Related Post: “Demoting Pluto Did Not Prevent the Financial Crisis”
The Waning Economic Cycle Of Jupiter Opposite Saturn: 2010–2011
Published by WallStreetWeather.netAs the two largest planets in our solar system, Jupiter and Saturn are opposing each other now through the spring of 2011, bringing large scale global events that alter the balance of power in economic, political, and societal structures.
Jupiter represents growth and expansion which can lead to excess. Saturn represents contraction and limitation. Like its famous rings, Saturn likes to work within the boundaries of existing structures. Jupiter’s optimism and desire for short term gain sharply contrasts with Saturn’s cautious and disciplined approach that desires long term stability. Oppositions make us fully aware of the differences that exist between these two divergent energies. The expression “opposites attract” could have originally been used to describe when two planets are in opposite zodiacal signs as the energies share enough similar qualities to cooperate and bridge the gap that exists between them.
The influence of bullish Jupiter and bearish Saturn in opposition to one another is most powerful from May through August 2010 and during late winter/early spring 2011. In financial markets, long term planetary oppositions operate like a seesaw. One minute Jupiter will exaggerate Saturn’s fears and the next minute Jupiter will stage a rally by overestimating Saturn’s fundamentals. Overall, Saturn is likely to contract Jupiter’s excesses and keep the markets trading within a range.
The opposition marks the midpoint or “full Moon” of the Jupiter/Saturn cycle. Saturn will be the dominant energy during the waning phase of this cycle (2010-2020), as Pluto the planetary energy ruling debt is in Saturn-ruled Capricorn (2008-2024). Adding to the pressure is Saturn squaring Pluto (2009-2010) in the waning phase of its cycle (2001-2020) at the same time Jupiter opposes Saturn in August 2010. Both of these planets are putting pressure on Jupiter to stop attempting to overstimulate the economy.
Saturn rules time. Jupiter and Saturn represent a 20 year cycle that began on May 28, 2000 when Jupiter and Saturn conjoined in Venus-ruled Taurus (money, banks). Jupiter and Saturn squared Uranus in Aquarius (extreme price movements), reflecting the stock market’s peak just prior to the conjunction before the markets headed in the other extreme. Since Uranus rules tech, the Nasdaq experienced the sharpest decline due to the collapse of the dotcom bubble.
When Jupiter conjoins Saturn the pro growth interests of big business and governments are in sync. Venus in Gemini conjoined the Sun (speculation); both opposed Pluto in Sagittarius. Multiple market booms and busts are fueled by the central banks (Sun conjunct Venus) overly accommodative monetary policy. Pluto in Jupiter-ruled Sagittarius (1995-2008) created cheap debt that inflated the price of various asset classes worldwide.
The prior conjunction of Jupiter and Saturn in 1981 occurred in Venus-ruled Libra which led to the Savings & Loan crisis the last time Jupiter and Saturn opposed each other during 1989-1991. Scandinavian banks faced their own credit crisis then. The Nikkei peaked and subsequently crashed.
Jupiter opposite Saturn brings major changes in government and government policy towards other countries which can lead to a shift in borders and boundaries. The Berlin Wall fell* which led to the reunification of Germany, the Soviet empire collapsed, and the U.S. invaded Iraq for the first time. (One Jupiter/Saturn opposition cycle later, the U.S. is engaged in Iraq War No. 2.)
During the first opposition on May 23, 2010 Jupiter in Pisces will oppose Saturn in Virgo, while the oppositions on August 16 and March 28 will occur with Jupiter in Aries and Saturn in Libra. The last time Jupiter opposed Saturn in the same signs was during 1951-1952.
Once again, Jupiter conjoined Saturn in the banking sign Taurus during 1940-1941 which saw the creation of the IMF and World Bank. A couple of key events that occurred during the Jupiter/Saturn oppositions of 1951-1952 are being played out during the current cycle.
The Federal Reserve has aggressively lobbied Congress, threatening its “independence” would be jeopardized if financial regulatory reform subjected the central bank to periodic audits and removed its supervision of banks.
In early 1951, the Fed fought to restore its “independence” from government control in an opposite yet somewhat similar dynamic. During the current financial crisis, the Fed engaged in quantitative easing (printing money) by purchasing Treasury debt in order to spur growth (Jupiter). Monetizing the debt and maintaining nearly zero interest rates have the additional benefit of helping the government (Saturn) lower its borrowing costs.
Back then, the Fed agreed to the government’s request to monetize the debt by maintaining very low fixed Treasury yields to reduce the cost of financing WWII. Inflation soared when price controls were lifted after the war, but the government wanted the Fed to maintain the fixed Treasury yields to support the cost of the new war in Korea. At the time Jupiter in Pisces opposed Saturn in Virgo in 1951, the Fed and the Treasury reached an Accord that restored the Fed’s independence by allowing the central bank to drop the pegged interest rate on government bonds.
Unlike the Fed Accord, sometimes the differences highlighted by the Jupiter/Saturn opposition are unable to be resolved and the opposing forces agree to disagree. The Armistice agreement between North and South Korea following the Jupiter/Saturn oppositions has left a conflict unresolved with the tensions reaching a heightened level as Jupiter and Saturn repeat their cycle in the same signs of the zodiac, and Saturn conjoins the progressed** Sun in Virgo of the chart for the Armistice agreement.
After an investigation into the sinking of a South Korean naval vessel that killed 46 sailors on March 26, South Korea has now accused North Korea of violating the Armistice by firing a torpedo from a North Korean submarine into the South Korean warship. In addition to what I previously outlined concerning the situation, tensions between the North and South could reach a boiling point around June 4 when Mars in Leo opposes Neptune in Aquarius. This could see further aggression by the North as this alignment stresses the charts of North Korea and its “dear leader” Kim Jong Il.
With the Last Quarter Moon in Neptune-ruled Pisces, this could once again manifest as another surprise attack by sea. Any diplomatic agreements to punish the North’s behavior are likely to only have a temporary effect as the July 11 Solar Eclipse exactly conjoins the Armistice agreement’s natal Uranus in Cancer. This is likely to create more surprises and rebellious acts by the North that violate the agreement as the North could embark on another incursion over the border.
With all the endless comparisons between the current financial crisis and the Great Depression, it should not be surprising that Jupiter opposed Saturn between1930-1931. The planetary similarities do not end there as during the Depression Jupiter and Pluto in Cancer opposed Saturn in Capricorn and squared Uranus in Aries. Uranus will enter Aries on May 27 for the first time since the Depression. Once again these planets will form challenging alignments in cardinal (initiating) signs, only this time around Jupiter and Uranus in Aries will oppose Saturn in Libra and square Pluto in Capricorn.
Even more potent this time is that these alignments will converge this summer in the beginning degrees of cardinal signs. What took years to unfold in the past can happen in the course of a few months, days or even seconds in our interconnected global world.
Saturn rules government and its first square to Pluto in Saturn-ruled Capricorn in November 2009 brought the world’s attention to the potential that a sovereign debt default could be the next phase of the financial crisis after government-owned Dubai World announced it would delay making payments on its debt.
Jupiter in Pisces opposite Saturn in Virgo May 23 describes the contrasting actions by global leaders to keep the sovereign debt crisis contained within the borders of the Eurozone. Virgo and Pisces represent the end of a cycle. The Moon in Venus-ruled Libra and Venus in Cancer opposing Pluto in Capricorn highlight concerns about the loans and sovereign debt held by banks. Regardless of what is emanating from Wall Street, the May 27 Full Moon in Jupiter-ruled Sagittarius on Jupiter-ruled Thursday is likely to keep the attention of U.S. markets focused abroad. Saturn’s energy is pronounced now as it turns direct May 30 after being retrograde since January 13.
Jupiter in Pisces opposite Saturn in Virgo is sending a message from across the Atlantic that it’s time to clean up the debris from the party and sober up.
At least conceptually, Europe and the new UK government understand that large scale sacrifices (Jupiter in Pisces) must be made and budgets severely cut and operated under tight controls (Saturn in Virgo) as pro austerity (Saturn/Pluto) measures are enacted. The EU plans to issue fines for governments within the Eurozone that fail to meet deficit reduction targets.
True to the energies of the opposition, this is 180 degrees away from the pro-growth, high deficit mantra of the US. With Jupiter the ruler of the USA chart and Venus conjoining Jupiter in Cancer, pro-growth policies to spur consumption are part of the nation’s planetary DNA.
What the market fails to grasp right now is that if pro austerity measures are enacted in Europe and the UK it would make their sovereign debt more secure! Despite the dollar being the world’s reserve currency, America’s lack of fiscal restraint makes the economy vulnerable to attacks on a comparative basis by the bond vigilantes this summer as Jupiter and Uranus in Mars-ruled Aries can bring a sharp and unexpected spike in Treasury yields as they oppose Saturn (government) and Pluto (bonds).
As I have previously described, all of these planetary alignments are impacting the Federal Reserve’s natal Sun in Capricorn opposite Pluto in Cancer, and the sector of the Fed’s chart (Midheaven) representing its reputation that is ruled by Aries. As the leader (Sun) of the Fed, Ben Bernanke has put the Fed under self-imposed pressure not to restart purchasing Treasuries and mortgage securities (Pluto).
This summer as Jupiter and Uranus conjoin the Fed’s Aries Midheaven and square the Fed’s natal Sun and Pluto which is also challenged by Saturn in Libra and Pluto in Capricorn, Bernanke and the Fed’s credibility would clearly be damaged if the Fed reversed course. Without the ability to lower rates, the Fed has used up all its ammo. While I will probably be wrong about the Fed dropping its “extended period” policy accommodation and actively raising rates this summer that does not mean the Fed will not allow intermediate and long term rates to rise.
Eclipses are harbingers of major change as their effects are felt before and after their occurrence. The June 26 Lunar Eclipse in Capricorn conjoins Pluto and opposes the USA’s natal Venus and Jupiter in Cancer. Congress will have probably passed financial regulatory reform before this time and the ramifications that the US financial system is being slowly steered back to more plain vanilla banking with dividend paying bank stocks being viewed like utilities, will just be beginning to sink in.
Between mid July and mid August all of the planets I’ve been describing will be forming challenging alignments in cardinal signs. Mars will move into Libra July 29 followed by Venus in Libra August 6, triggering the action between the other planets. Mars and Venus last traveled together during late August to October 2008 during the height of the financial panic.
These energies lead up to mid August when Jupiter in Aries will oppose Saturn in Libra at the First Quarter Moon in Pluto-ruled Scorpio on August 16. At options expiration, Venus will conjoin Mars, Mercury will turn retrograde in its home sign Virgo, and the Sun in Leo opposing Neptune in Aquarius will create confusion amongst leaders as to what to do. Venus will conjoin Mars and both will square the Moon (sentiment) in Saturn-ruled Capricorn August 20 and 21 as Saturn and Pluto square off for the final time.
It is at this second opposition of Jupiter and Saturn that our relationships will be put to the test. The financial crisis erupted due to a lack of trust regarding relationships with financial counterparties. Now it progresses into the financial relationships between banks and nations and nation to nation as Jupiter opposite Saturn brings out nationalistic tendencies. However, all types of relationships could be under strain now. Some will emerge stronger, and others will break apart. (On a lighter note, Since Libra rules romantic partnerships and Jupiter rules comedy, watching some I Love Lucy episodes*** would be an appropriate antidote at this time since the series made its debut the day Jupiter in Aries opposed Saturn in Libra on October 15, 1951.)
The USA will be undergoing its Saturn return**** during the final opposition of Jupiter and Saturn on March 28, 2011. The Sun is straddled between Jupiter and Uranus in Aries opposing Saturn in Libra. Jupiter’s ruler Mars is in Neptune-ruled Pisces conjoining Uranus while Libra’s ruler Venus is in Pisces conjoining Neptune, which will shift from Aquarius to its home sign Pisces April 4.
Jupiter rules the court system and Saturn is exalted in Libra the sign of balance represented by the scales of justice. Long established and entrenched legal structures that benefit corporate interests are beginning to dissolve as new laws born out of the necessity to restore fiscal discipline ultimately end up benefiting the good of the nation.
If Congress passes a law that is now in its early stages in the Senate that companies who do business with the government cannot lobby the government that would prevent the medical industrial complex from trying to influence regulations. If defense contractors can’t lobby, our bloated war budget would be sharply reduced. While this may seem very remote, I think the planetary energies reflect the public regardless of their personal political affiliation has finally become fed up with Washington’s too cozy relationship with big business and are prepared to do something about it if Congress won’t. Washington and their special interests will realize that “polarizing” (another word for opposition) the population into taking up extreme sides of the political spectrum for political and financial gain is waning.
Mars/Aries is war and Venus/Libra is diplomacy. With the Sun squaring Pluto (power and nuclear issues), the USA’s relations with China, North Korea, Iraq, and Iran will be undergoing transformation as the USA’s reputation in the world undergoes transformation at its Saturn return.
Jupiter opposite Saturn reflects that optimism and fear are both overblown. While the planetary alignments in cardinal signs are going to be quite challenging to say the least, living in the transition phase of the planets shifting from mutable (ending cycle) signs (Pluto in Sagittarius, Saturn in Virgo, Uranus in Pisces) to the beginning of cardinal signs (Pluto in Capricorn, Saturn in Libra, Jupiter and Uranus in Aries), is necessary to transform the outworn economic model known as our “free enterprise” (i.e. government subsidized) corporate system that depends on growth at all costs (Jupiter) back to one where individuals, corporations, and the government equally contribute to the betterment of society to foster long term economic stability (Saturn).
Slow, steady, and sustainable growth is the new mantra now.
*Saturn was conjoining Neptune then, symbolizing the dissolving (Neptune) of structures (Saturn).
** A mathematical calculation that moves the planets forward in time as a method of prediction.
***Speaking of long running (Saturn) TV shows, even the name Law & Order represents Jupiter and Saturn. The original series has run one full Jupiter/Saturn opposition cycle as the original series debuted in 1989 and the final episode will air on May 24.
****A Saturn return occurs about every 29.5 years when Saturn returns to its birth position. It marks a time of major upheaval and restructuring. Saturn will conjoin the USA’s natal Saturn in Libra during November/December 2010, March/April and July/August 2011.
WallStreetWeather.net Forecast For Week Of May 17, 2010
Summary Of Last Week’s Influences:
Like an addict who needs an ever greater fix to make an impact, the “shock and awe” of the EU’s nearly $1 trillion backstop announced Sunday to prop up Greece and other troubled Eurozone nations wore off before the week was over.
As noted in last week’s forecast, Mercury retrograde in Taurus brought a repeat performance of the weekend deals arranged by the Treasury and Federal Reserve “before Asia opens” at the height of the financial crisis. Even though this deal was arranged by the European Commission together with the European Central Bank, Washington was aggressively working the phones since the market’s record point plunge to ensure a deal got done so Europe’s problems would not continue to jeopardize the U.S. stock market.
Once Mercury reversed course and slowly started moving forward, markets began to rethink the elements of the deal, questioning whether the move did anything more than delay the debt dilemma to another day.
The bulk of the $955 billion package would create a special purpose vehicle (an off balance sheet entity that got Citigroup into trouble). Creation of the fund is dependent on approval by all the parliaments of the contributing nations. The second largest portion of the package consists of matching loans from the IMF which would be conditional upon the borrowing nation enacting severe austerity measures. The only part of this deal that has funds that could be drawn upon quickly is a $60 billion emergency fund coming from the overall EU budget intended for dealing with natural (not manmade) disasters.
Ironically the EU’s loan guarantee package was put together on “Europe’s Birthday,”* which celebrates the day French foreign minister Robert Schuman issued a declaration calling for a united Europe back in 1950. Venus is the ruler of the chart, and Venus in Aries squares Uranus which conjoins the chart’s Cancer Midheaven representing its reputation. Jupiter, Saturn, Uranus, and Pluto will challenge these natal positions this summer, lead by the June 26 Capricorn Lunar Eclipse that exactly squares Venus in the sector representing financial relationships with other nations. This is likely to bring a catalyst event that will force Greece’s debt to be restructured, requiring European banks to take a haircut. The U.S. is concerned that when American banks counterparty with their weakened European rivals, risk is enhanced.
The last time shock and awe was popularly used was when U.S. forces invaded Iraq. Seven years or one Uranus cycle later, it’s ironic that on the day “shock and awe” was applied to lift up the markets, the deadliest violence all year occurred in Iraq. Just as the world was deceived into believing Iraq had weapons of mass destruction, the illusion is that Greece and other Eurozone members’ debt problems are now under control. Reorganizing Greece’s debt or forcing investors to take a haircut made out to be a weapon of mass destruction is also an illusion.
Summary Of This Week’s Influences:
Venus (money/asset values; banking) concludes its transit begun in Mercury-ruled Gemini April 25 that brought choppier and more volatile trading. Venus forms alignments to Jupiter (Monday), Saturn (Tuesday), Uranus and Neptune (Wednesday) before shifting into Cancer late Wednesday. This occurs at the same time the Sun in Venus-ruled Taurus (leaders; central banks, speculation) aspects Jupiter (Monday), Saturn (Tuesday), Neptune (Wednesday), and Uranus (Thursday), before entering Gemini Thursday night.
Jupiter expands and exaggerates while Saturn contracts and limits. Jupiter and Saturn will exactly oppose each other for the first time in almost 20 years on May 23. Volatility and large market moves will likely continue as markets see saw between optimism (Jupiter) and pessimism (Saturn) in interpreting economic conditions. Jupiter in Pisces expands the global interconnectedness of the sovereign debt crisis despite government efforts to keep it tightly contained (Saturn in Virgo). Between now and spring 2011, large scale global events will alter the balance of power in economic, political, and societal structures.
The Moon represents sentiment and rules Mondays. Beyond the planetary influences, Mondays are greatly determined by news events occurring over the weekend as this is a popular time for deals to get done. With the Moon in its “home” sign Cancer Monday and Tuesday and Venus and the Sun aspecting Jupiter in Pisces, the market Monday could make large moves in either direction. Leaders exhibit confidence that the economy continues to expand. Banks, transports, and the consumer sectors could be the focus. These planetary influences could bring news about diabetes.
Venus squares Saturn Tuesday, further emphasizing the government’s desire for accountability in the financial industry. Venus/Saturn can put pressure on valuations which could be slightly offset by harmonious alignments between the Sun and Saturn and Venus and Neptune in Aquarius that Congress and financial regulators will not want to enact rules that would impede the flow of credit.
The Moon in Leo Wednesday and Thursday puts the focus on speculation. On Wednesday as the Sun squares Neptune, the Senate Banking Committee will hold a hearing to see if they can sort out the confusion surrounding what specifically caused the start of the May 6 “flash crash.”
The May 10 Taurus New Moon squared Mars and Neptune, emphasizing that action will occur over the next month concerning individuals and institutions accused of fraudulent trading practices. Thursday’s First Quarter Moon reinforces these energies which will culminate on June 4 when Mars in Leo exactly opposes Neptune during the Last Quarter Moon in Neptune-ruled Pisces. Mars opposite Neptune tends to have a negative influence on the market as illusions in one form or another (credit-related issues is a favorite) gets shaken up.
Mercury in Taurus harmonizes with Pluto in Capricorn for the third time on Wednesday due to Mercury’s retrograde cycle. The previous alignments related to news by central banks favorable for debt and lending. On April 6 the market viewed the Minutes from the March 16 FOMC meeting as dovish, while on May 3 the ECB announced it would accept Greek bonds as collateral even if they were rated as junk.
Once again Mercury harmonizes with Pluto as the Fed releases the Minutes of the April 28 FOMC meeting on the same day as April CPI is released. What the Fed and the CPI have in common is that both ignore all forms of inflation such as asset prices, calculating the data in such a way to mask (Neptune) the true cost of living to reduce index expenses such as Social Security.
Barron’s is begging the Fed to “please raise rates!” before more investors desperate for yield pour money into overinflated assets. St. Louis FRB president Thomas Hoenig, who continues to expand on his dissent at each successive FOMC meeting and further elaborated his thoughts in a Wall Street Journal interview yesterday, won’t acknowledge that the Fed can predict bubbles (Neptune). Alan Greenspan freely acknowledged after he left the Fed that bubbles are the key to promoting real-world “innovation” and are an integral part of the Fed’s tool kit.
Venus squaring Uranus in Pisces Wednesday generates excitement in the latest tech trends. The Venus square to Uranus together with the Sun forming a favorable aspect to Uranus Thursday, creates excitement and the potential for sudden intraday gyrations.
Venus enters Cancer Wednesday evening until June 14. Planets entering cardinal signs tend to bring action and new information about the Fed, as the central bank has the Sun in Capricorn opposite Pluto in Cancer, and an Aries Midheaven (the sector of the its natal chart representing its reputation). Beyond monetary policy, Venus conjoining the Fed’s Pluto relates to the Fed’s secret lending arrangements and behind the scenes lobbying by Bernanke to keep all of its powers intact.
The Sun enters Gemini late Thursday evening with the Moon in Virgo. The Sun and Moon in Mercury-ruled signs emphasize communication and movement. The Moon emphasizes the energies of Saturn in Virgo which is gaining influence now due to its opposition to Jupiter Sunday and appearing to stand still in the sky May 27-June 2 as it turns direct May 30 after being retrograde since January 13. Transportation, jobs, and healthcare is in focus now. Unfortunately for travelers (especially foreign travel), these influences are likely to continue to create delays.
I know what I’m about to say is totally unprecedented in central bank history and goes against the grain of global central banks buying and holding gold when prices are high to create liquidity, and selling when gold prices are low during good economic times, but one wild and crazy thought is that the Fed starts to slowly sell a small amount of gold as a way of tightening the money supply.
While I know Uranus represents extreme and bizarre behavior, I probably need to come up with some more realistic scenarios regarding how half the planets in our solar system forming challenging alignments to each other at the beginning of initiating signs this summer could affect economic and geopolitical events.
With Jupiter and Uranus conjoining at the beginning of Aries June 8, only bold and innovative ideas and actions that haven’t been done before need apply.
Monday, May 17, 2010
Positive.
Happy 218th Birthday, NYSE!
Tuesday, May 18, 2010
Moderately positive early before becoming choppy/mixed; see saws between moderately negative to positive.
Wednesday, May 19, 2010
Negative conditions improve and could stage an afternoon reversal.
Thursday, May 20, 2010
Negative before improving to choppy/mixed to moderately positive.
Friday, May 21, 2010
(Options expiration) Negative.
*Europe’s Birthday (Schuman Declaration): May 9, 1950 4:00 PM CET Paris (see p. 6)
Federal Reserve: December 23, 1913 6:02 PM EST Washington, DC
Like an addict who needs an ever greater fix to make an impact, the “shock and awe” of the EU’s nearly $1 trillion backstop announced Sunday to prop up Greece and other troubled Eurozone nations wore off before the week was over.
As noted in last week’s forecast, Mercury retrograde in Taurus brought a repeat performance of the weekend deals arranged by the Treasury and Federal Reserve “before Asia opens” at the height of the financial crisis. Even though this deal was arranged by the European Commission together with the European Central Bank, Washington was aggressively working the phones since the market’s record point plunge to ensure a deal got done so Europe’s problems would not continue to jeopardize the U.S. stock market.
Once Mercury reversed course and slowly started moving forward, markets began to rethink the elements of the deal, questioning whether the move did anything more than delay the debt dilemma to another day.
The bulk of the $955 billion package would create a special purpose vehicle (an off balance sheet entity that got Citigroup into trouble). Creation of the fund is dependent on approval by all the parliaments of the contributing nations. The second largest portion of the package consists of matching loans from the IMF which would be conditional upon the borrowing nation enacting severe austerity measures. The only part of this deal that has funds that could be drawn upon quickly is a $60 billion emergency fund coming from the overall EU budget intended for dealing with natural (not manmade) disasters.
Ironically the EU’s loan guarantee package was put together on “Europe’s Birthday,”* which celebrates the day French foreign minister Robert Schuman issued a declaration calling for a united Europe back in 1950. Venus is the ruler of the chart, and Venus in Aries squares Uranus which conjoins the chart’s Cancer Midheaven representing its reputation. Jupiter, Saturn, Uranus, and Pluto will challenge these natal positions this summer, lead by the June 26 Capricorn Lunar Eclipse that exactly squares Venus in the sector representing financial relationships with other nations. This is likely to bring a catalyst event that will force Greece’s debt to be restructured, requiring European banks to take a haircut. The U.S. is concerned that when American banks counterparty with their weakened European rivals, risk is enhanced.
The last time shock and awe was popularly used was when U.S. forces invaded Iraq. Seven years or one Uranus cycle later, it’s ironic that on the day “shock and awe” was applied to lift up the markets, the deadliest violence all year occurred in Iraq. Just as the world was deceived into believing Iraq had weapons of mass destruction, the illusion is that Greece and other Eurozone members’ debt problems are now under control. Reorganizing Greece’s debt or forcing investors to take a haircut made out to be a weapon of mass destruction is also an illusion.
Summary Of This Week’s Influences:
Venus (money/asset values; banking) concludes its transit begun in Mercury-ruled Gemini April 25 that brought choppier and more volatile trading. Venus forms alignments to Jupiter (Monday), Saturn (Tuesday), Uranus and Neptune (Wednesday) before shifting into Cancer late Wednesday. This occurs at the same time the Sun in Venus-ruled Taurus (leaders; central banks, speculation) aspects Jupiter (Monday), Saturn (Tuesday), Neptune (Wednesday), and Uranus (Thursday), before entering Gemini Thursday night.
Jupiter expands and exaggerates while Saturn contracts and limits. Jupiter and Saturn will exactly oppose each other for the first time in almost 20 years on May 23. Volatility and large market moves will likely continue as markets see saw between optimism (Jupiter) and pessimism (Saturn) in interpreting economic conditions. Jupiter in Pisces expands the global interconnectedness of the sovereign debt crisis despite government efforts to keep it tightly contained (Saturn in Virgo). Between now and spring 2011, large scale global events will alter the balance of power in economic, political, and societal structures.
The Moon represents sentiment and rules Mondays. Beyond the planetary influences, Mondays are greatly determined by news events occurring over the weekend as this is a popular time for deals to get done. With the Moon in its “home” sign Cancer Monday and Tuesday and Venus and the Sun aspecting Jupiter in Pisces, the market Monday could make large moves in either direction. Leaders exhibit confidence that the economy continues to expand. Banks, transports, and the consumer sectors could be the focus. These planetary influences could bring news about diabetes.
Venus squares Saturn Tuesday, further emphasizing the government’s desire for accountability in the financial industry. Venus/Saturn can put pressure on valuations which could be slightly offset by harmonious alignments between the Sun and Saturn and Venus and Neptune in Aquarius that Congress and financial regulators will not want to enact rules that would impede the flow of credit.
The Moon in Leo Wednesday and Thursday puts the focus on speculation. On Wednesday as the Sun squares Neptune, the Senate Banking Committee will hold a hearing to see if they can sort out the confusion surrounding what specifically caused the start of the May 6 “flash crash.”
The May 10 Taurus New Moon squared Mars and Neptune, emphasizing that action will occur over the next month concerning individuals and institutions accused of fraudulent trading practices. Thursday’s First Quarter Moon reinforces these energies which will culminate on June 4 when Mars in Leo exactly opposes Neptune during the Last Quarter Moon in Neptune-ruled Pisces. Mars opposite Neptune tends to have a negative influence on the market as illusions in one form or another (credit-related issues is a favorite) gets shaken up.
Mercury in Taurus harmonizes with Pluto in Capricorn for the third time on Wednesday due to Mercury’s retrograde cycle. The previous alignments related to news by central banks favorable for debt and lending. On April 6 the market viewed the Minutes from the March 16 FOMC meeting as dovish, while on May 3 the ECB announced it would accept Greek bonds as collateral even if they were rated as junk.
Once again Mercury harmonizes with Pluto as the Fed releases the Minutes of the April 28 FOMC meeting on the same day as April CPI is released. What the Fed and the CPI have in common is that both ignore all forms of inflation such as asset prices, calculating the data in such a way to mask (Neptune) the true cost of living to reduce index expenses such as Social Security.
Barron’s is begging the Fed to “please raise rates!” before more investors desperate for yield pour money into overinflated assets. St. Louis FRB president Thomas Hoenig, who continues to expand on his dissent at each successive FOMC meeting and further elaborated his thoughts in a Wall Street Journal interview yesterday, won’t acknowledge that the Fed can predict bubbles (Neptune). Alan Greenspan freely acknowledged after he left the Fed that bubbles are the key to promoting real-world “innovation” and are an integral part of the Fed’s tool kit.
Venus squaring Uranus in Pisces Wednesday generates excitement in the latest tech trends. The Venus square to Uranus together with the Sun forming a favorable aspect to Uranus Thursday, creates excitement and the potential for sudden intraday gyrations.
Venus enters Cancer Wednesday evening until June 14. Planets entering cardinal signs tend to bring action and new information about the Fed, as the central bank has the Sun in Capricorn opposite Pluto in Cancer, and an Aries Midheaven (the sector of the its natal chart representing its reputation). Beyond monetary policy, Venus conjoining the Fed’s Pluto relates to the Fed’s secret lending arrangements and behind the scenes lobbying by Bernanke to keep all of its powers intact.
The Sun enters Gemini late Thursday evening with the Moon in Virgo. The Sun and Moon in Mercury-ruled signs emphasize communication and movement. The Moon emphasizes the energies of Saturn in Virgo which is gaining influence now due to its opposition to Jupiter Sunday and appearing to stand still in the sky May 27-June 2 as it turns direct May 30 after being retrograde since January 13. Transportation, jobs, and healthcare is in focus now. Unfortunately for travelers (especially foreign travel), these influences are likely to continue to create delays.
I know what I’m about to say is totally unprecedented in central bank history and goes against the grain of global central banks buying and holding gold when prices are high to create liquidity, and selling when gold prices are low during good economic times, but one wild and crazy thought is that the Fed starts to slowly sell a small amount of gold as a way of tightening the money supply.
While I know Uranus represents extreme and bizarre behavior, I probably need to come up with some more realistic scenarios regarding how half the planets in our solar system forming challenging alignments to each other at the beginning of initiating signs this summer could affect economic and geopolitical events.
With Jupiter and Uranus conjoining at the beginning of Aries June 8, only bold and innovative ideas and actions that haven’t been done before need apply.
Monday, May 17, 2010
Positive.
Happy 218th Birthday, NYSE!
Tuesday, May 18, 2010
Moderately positive early before becoming choppy/mixed; see saws between moderately negative to positive.
Wednesday, May 19, 2010
Negative conditions improve and could stage an afternoon reversal.
Thursday, May 20, 2010
Negative before improving to choppy/mixed to moderately positive.
Friday, May 21, 2010
(Options expiration) Negative.
*Europe’s Birthday (Schuman Declaration): May 9, 1950 4:00 PM CET Paris (see p. 6)
Federal Reserve: December 23, 1913 6:02 PM EST Washington, DC
WallStreetWeather.net Forecast For Week Of May 10, 2010
Summary Of Last Week’s Influences:
Last Sunday the EU and IMF agreed to a three year $145 billion aid package for Greece in exchange for the Greek government adopting various austerity measures. One week later EU finance ministers are meeting in Brussels to agree to a stabilization package of loan guarantees for Greece worth an estimated $560 billion and would expand the IMF’s aid to $140 billion “before Asia opens.”
Reruns that remind us of past issues is standard operating procedure when Mercury is retrograde. Some view the situation in Greece creating a domino effect similar to the contagion that spread through Wall St. in the fall of 2008.
Mercury was retrograde when then Treasury Secretary Hank Paulson who operated under the mantra “before Asia opens” was trying to calm the markets by getting Congress to pass the TARP. Mercury was retrograde in Libra, a sign ruled by Venus. Now Mercury is retrograde in Venus’ other sign, Taurus. Venus rules money and banks; in both instances the concern is what banks are holding (Greek debt now vs. mortgages then). And now in what would be the equivalent of insuring subprime CDOs, EU finance ministers are reported to be working out a proposal to insure each other’s sovereign debt.
While Mercury retrograde can be a favorable time to do certain things (see above links), holding a presidential or parliamentary election is not one of them. Maybe Gordon Brown believed calling an election for May 6 would help him get re-elected. However, another way of viewing it is that Mercury retrograde can signify a return of the previous party in power. As the U.S. learned in the 2000 election, Mercury retrograde creates confusion.
The last election that lead to a hung parliament in the UK was on February 28, 1974. Mercury was retrograde then and Saturn was in Mercury-ruled Gemini which is exactly squaring where Saturn in Mercury-ruled Virgo is now. At that time the out of power Labour party won the most seats but not enough for a majority. Conservative PM Edward Heath resigned after failing to reach a coalition agreement with the Liberals. Labour party leader Harold Wilson became PM, and called for a second election on October 10, with Labour winning a slim majority.
Saturn rules government, and Uranus seeks to shake up business as usual. Saturn and Uranus first opposed each other the day Barack Obama was elected president. Saturn and Uranus were in exact opposition for the fourth time April 26. Like Obama, the Conservative and Liberal Democrats campaigned on “change.” And like the US presidential election, the leaders of the Conservatives and Lib Dem parties are young (Uranus) vs. the older and politically seasoned incumbent (Saturn). Cameron and Clegg were born three months apart the last time Saturn opposed Uranus in the mid-1960s.
Just as comparisons have been made between the financial crisis and the Great Depression, there are planetary parallels as well. On August 24, 1931, a coalition (National) government was formed between Britain’s major political parties. Saturn, Uranus, and Pluto were forming challenging alignments to one other in cardinal (action) signs, just as they are for the first time now. Mars was in Libra then (which is where it was in fall 2008 and where it will be this summer). Like then, these influences could motivate the parties to reach agreement to work together to maintain economic confidence.
David Cameron was born with the Sun (self-identity, leadership) conjoining Venus (partnerships) in Libra. His success in everything he does in life depends upon his ability to reach out and forge cooperative alliances with others. Mars in Libra at the time of the 1931 coalition conjoins Cameron’s natal Sun, reflecting that he has to actively bridge the divide that exists between the parties if his party is to lead.
The planetary influences I’ve outlined here are described in greater detail in my post on the planetary influences surrounding last Thursday’s record point plunge. Last Friday’s April nonfarm payrolls increased 290,000 – the fourth consecutive monthly increase and the largest gain since March 2006. There were more job gains than originally reported in February and March as well. The official unemployment rate increased to 9.9% as more unemployed people returned to looking for work. The markets initially reacted positively to the news before returning to concerns about Greece, which goes back to my theory that as Wall St. declines this summer, conditions on Main St. will continue to gradually improve.
Summary Of This Week’s Influences:
Financial matters in one form or another will continue to dominate the news this week as Mercury turns direct on Tuesday after being retrograde since April 17, and the Taurus New Moon occurs on Thursday evening.
On Monday aspects involving the Sun, Mars, and Pluto together with the Moon in Mars-ruled Aries (through Tuesday) motivate world leaders (Sun) to quickly take action (Mars) regarding sovereign debt (Pluto). Aries energy is fast and impulsive, believing that any action is better than doing nothing.
These energies also relate to Congress taking action regarding certain trading practices. In keeping with my description about Aries energy being impatient, on Tuesday the House Financial Services Subcommittee will hold a hearing into what caused the market to plunge Thursday even though an investigation has not yet been completed.
Transits to the USA’s Mars/Neptune square have brought major financial and military-related events. Although more benevolent in nature than other alignments, Venus in Gemini conjoining the USA’s natal Mars and squaring natal Neptune Wednesday and Thursday could bring volatile intraday gyrations. Mars is fires and Neptune rules oil. On Wednesday the House Energy & Commerce Subcommittee will hold a hearing on the Deepwater Horizon oil rig explosion.
Coinciding with the Moon in Taurus Wednesday and Thursday leading up to the New Moon, this influence could also relate to the Senate voting on various amendments as part of the overall financial reform legislation. Venus conjoining the USA’s Mars in Gemini in the sector representing agreements could mean that the Senate passes the compromised amendment to audit the Federal Reserve wih the exception of monetary policy.
Monday, May 10, 2010
Strong Mars energy today can be volatile with rapid buying or selling. Positive bias but volatile gyrations intraday. Merger speculation could surface.
Tuesday, May 11, 2010
Choppy/mixed to positive trend bias.
Wednesday, May 12, 2010
Negative bias, but could stage a late day reversal and close mixed to slightly up.
Thursday, May 13, 2010
Negative, but improves at the close.
Friday, May 14, 2010
Positive.
Gordon Brown: February 20, 1951 8:40 AM Glasgow, Scotland
David Cameron: October 9, 1966 6:00 AM London
Nick Clegg: January 7, 1967 time unknown Chalfont St. Giles, England
On a personal note regarding Mercury retrograde, my internet connection has alternated between being sporadic to down this evening.
Last Sunday the EU and IMF agreed to a three year $145 billion aid package for Greece in exchange for the Greek government adopting various austerity measures. One week later EU finance ministers are meeting in Brussels to agree to a stabilization package of loan guarantees for Greece worth an estimated $560 billion and would expand the IMF’s aid to $140 billion “before Asia opens.”
Reruns that remind us of past issues is standard operating procedure when Mercury is retrograde. Some view the situation in Greece creating a domino effect similar to the contagion that spread through Wall St. in the fall of 2008.
Mercury was retrograde when then Treasury Secretary Hank Paulson who operated under the mantra “before Asia opens” was trying to calm the markets by getting Congress to pass the TARP. Mercury was retrograde in Libra, a sign ruled by Venus. Now Mercury is retrograde in Venus’ other sign, Taurus. Venus rules money and banks; in both instances the concern is what banks are holding (Greek debt now vs. mortgages then). And now in what would be the equivalent of insuring subprime CDOs, EU finance ministers are reported to be working out a proposal to insure each other’s sovereign debt.
While Mercury retrograde can be a favorable time to do certain things (see above links), holding a presidential or parliamentary election is not one of them. Maybe Gordon Brown believed calling an election for May 6 would help him get re-elected. However, another way of viewing it is that Mercury retrograde can signify a return of the previous party in power. As the U.S. learned in the 2000 election, Mercury retrograde creates confusion.
The last election that lead to a hung parliament in the UK was on February 28, 1974. Mercury was retrograde then and Saturn was in Mercury-ruled Gemini which is exactly squaring where Saturn in Mercury-ruled Virgo is now. At that time the out of power Labour party won the most seats but not enough for a majority. Conservative PM Edward Heath resigned after failing to reach a coalition agreement with the Liberals. Labour party leader Harold Wilson became PM, and called for a second election on October 10, with Labour winning a slim majority.
Saturn rules government, and Uranus seeks to shake up business as usual. Saturn and Uranus first opposed each other the day Barack Obama was elected president. Saturn and Uranus were in exact opposition for the fourth time April 26. Like Obama, the Conservative and Liberal Democrats campaigned on “change.” And like the US presidential election, the leaders of the Conservatives and Lib Dem parties are young (Uranus) vs. the older and politically seasoned incumbent (Saturn). Cameron and Clegg were born three months apart the last time Saturn opposed Uranus in the mid-1960s.
Just as comparisons have been made between the financial crisis and the Great Depression, there are planetary parallels as well. On August 24, 1931, a coalition (National) government was formed between Britain’s major political parties. Saturn, Uranus, and Pluto were forming challenging alignments to one other in cardinal (action) signs, just as they are for the first time now. Mars was in Libra then (which is where it was in fall 2008 and where it will be this summer). Like then, these influences could motivate the parties to reach agreement to work together to maintain economic confidence.
David Cameron was born with the Sun (self-identity, leadership) conjoining Venus (partnerships) in Libra. His success in everything he does in life depends upon his ability to reach out and forge cooperative alliances with others. Mars in Libra at the time of the 1931 coalition conjoins Cameron’s natal Sun, reflecting that he has to actively bridge the divide that exists between the parties if his party is to lead.
The planetary influences I’ve outlined here are described in greater detail in my post on the planetary influences surrounding last Thursday’s record point plunge. Last Friday’s April nonfarm payrolls increased 290,000 – the fourth consecutive monthly increase and the largest gain since March 2006. There were more job gains than originally reported in February and March as well. The official unemployment rate increased to 9.9% as more unemployed people returned to looking for work. The markets initially reacted positively to the news before returning to concerns about Greece, which goes back to my theory that as Wall St. declines this summer, conditions on Main St. will continue to gradually improve.
Summary Of This Week’s Influences:
Financial matters in one form or another will continue to dominate the news this week as Mercury turns direct on Tuesday after being retrograde since April 17, and the Taurus New Moon occurs on Thursday evening.
On Monday aspects involving the Sun, Mars, and Pluto together with the Moon in Mars-ruled Aries (through Tuesday) motivate world leaders (Sun) to quickly take action (Mars) regarding sovereign debt (Pluto). Aries energy is fast and impulsive, believing that any action is better than doing nothing.
These energies also relate to Congress taking action regarding certain trading practices. In keeping with my description about Aries energy being impatient, on Tuesday the House Financial Services Subcommittee will hold a hearing into what caused the market to plunge Thursday even though an investigation has not yet been completed.
Transits to the USA’s Mars/Neptune square have brought major financial and military-related events. Although more benevolent in nature than other alignments, Venus in Gemini conjoining the USA’s natal Mars and squaring natal Neptune Wednesday and Thursday could bring volatile intraday gyrations. Mars is fires and Neptune rules oil. On Wednesday the House Energy & Commerce Subcommittee will hold a hearing on the Deepwater Horizon oil rig explosion.
Coinciding with the Moon in Taurus Wednesday and Thursday leading up to the New Moon, this influence could also relate to the Senate voting on various amendments as part of the overall financial reform legislation. Venus conjoining the USA’s Mars in Gemini in the sector representing agreements could mean that the Senate passes the compromised amendment to audit the Federal Reserve wih the exception of monetary policy.
Monday, May 10, 2010
Strong Mars energy today can be volatile with rapid buying or selling. Positive bias but volatile gyrations intraday. Merger speculation could surface.
Tuesday, May 11, 2010
Choppy/mixed to positive trend bias.
Wednesday, May 12, 2010
Negative bias, but could stage a late day reversal and close mixed to slightly up.
Thursday, May 13, 2010
Negative, but improves at the close.
Friday, May 14, 2010
Positive.
Gordon Brown: February 20, 1951 8:40 AM Glasgow, Scotland
David Cameron: October 9, 1966 6:00 AM London
Nick Clegg: January 7, 1967 time unknown Chalfont St. Giles, England
On a personal note regarding Mercury retrograde, my internet connection has alternated between being sporadic to down this evening.
Planetary Influences and the Stock Market’s Record Breaking Plunge
Published by WallStreetWeather.netAfter starting the day in the red on Thursday, the major indices briefly turned positive early in the session before reversing and moving lower as the day progressed. The selling began to accelerate in the early afternoon, when fresh riots broke out after the Greek parliament passed the austerity measures as a condition for receiving a bailout from the EU and IMF.
The Dow went from being down around 135 points just before 1:30 PM to down 244 points an hour later. By 2:40 PM, the Dow was down 435 points, the Nasdaq120 points, and the S&P500 had declined 51 points. Five minutes later the Dow was down 998.50 points to 9,865 – its biggest point drop ever recorded before making a V-shaped recovery. After swinging 1,010.14 points between the high and low, the Dow closed down 347.50 points to 10,520.32. The Nasdaq closed down 82.65 to 2,319.64, and the S&P was down 37.72 to 1,128.15.
Beyond the fear that Greece’s debt problems could spread to other countries in the Eurozone and impact the banks holding their debt, a trading error is being attributed to the market’s rapid mid-afternoon plunge that immediately triggered a wave of sell orders across the market. Gossip began circulating that a Citigroup trader hit the wrong key and ended up executing a sell order for $16 billion instead of $16 million S&P E-mini futures contracts, even though Citi confirmed it did not trade more than $9 billion E-minis the entire day.
The Nasdaq announced after the close Thursday it reversed trades executed between 2:40 and 3:00 PM involving 286 securities that moved 60% or more from the level they were trading at just before 2:40 PM. A handful of these stocks had dropped to a penny during those 20 minutes due to a lack of corresponding buyers for all the computerized sell transactions. Shares of Dow component Proctor & Gamble (PG) dropped 37% during that time. The SEC and the CFTC announced they would be reviewing the “unusual” trading activity that occurred then.
Mercury rules communication, movement, and commerce. When Mercury is retrograde (April 18 to May 11), there is an increased potential for communication glitches and mental errors. Financial markets tend to become more unpredictable, diverting from previous trading patterns and support/resistance levels. Mercury retrograde in Taurus emphasizes money, banks, and valuations. Markets were disappointed after ECB president Trichet said that buying government debt was not discussed at the central bank’s policy meeting yesterday morning.
Mercury retrograde periods bring a return to past events and circumstances. Media reports began comparing the Greek drama to the large point declines in early fall 2008 when Mercury was retrograde in Libra which created a financial crisis after a loss of confidence in counterparty risk. There are concerns that U.S. banks could have counterparty risk with the French and German banks heavily exposed to Greece’s debt.
Yesterday the VIX saw its biggest percentage jump since the September 29, 2008 Libra New Moon when the Dow dropped 778 points after the House failed to pass the TARP bill. At that time CNBC kept showing their reporters standing in front of banks as they speculated “who’s next?” Yesterday the network kept replaying video of the rioting in Athens while speculating how far the sovereign debt crisis would spread.
Mercury rules the chart set for 2:40 PM yesterday and is located in the sector representing debt. The yield on the 10 year note dropped to 3.27% before closing at 3.401%, its lowest level since early December as investors swapped equities and commodities for U.S. debt.
Taurus is ruled by Venus, and Venus is in Mercury-ruled Gemini. Although Mercury rules the hands, it is unlikely that a “fat finger” trade was the sole cause. Saturn in Mercury-ruled Virgo ruling the sector of the stock market in the chart and residing in the sector of the chart representing prevailing attitudes indicates a lack of enough buyers in the exchanges where activity was taking place.
The Moon represents the mood of the market. The Moon in Aquarius can exacerbate the influence of Mercury retrograde as Aquarius and its planetary ruler Uranus represent what is unusual and unpredictable. The Moon in Aquarius in the sector representing the workforce and conjoining Neptune in Aquarius (unions) reflects the extreme behavior of the protestors in Greece since the Moon entered Aquarius Tuesday evening.**
Aquarius/Uranus rule electronics and technology. The Moon conjoining Neptune not only reflects the confusion over exactly what kind of electronic trading was behind the plunge, but it further confirms that buyers had disappeared.
The cycle the Moon is in influences markets, and yesterday the Moon was in the last quarter phase of the Aries New Moon cycle. Aries is ruled by Mars which was squared by the Sun and opposed by the Moon, indicating that volatility would accelerate. Mars in speculative Leo opposite the Moon in Aquarius draws attention to high speed electronic trading.
Yesterday a series of contraparallels** occurred between the Moon and Mercury, Mars and Pluto, and Jupiter and Saturn. Mars is fast, which can be either active buying or selling. Mars/Pluto raises the potential that manipulative behavior by a hedge fund or other organization might have begun yesterday’s meltdown which was accentuated by sophisticated traders choosing speed optimization over price optimization. Mars/Pluto tends to be a bearish influence and denotes aggressive behavior. Together with the Last Quarter Moon in Aquarius, the actions of a few youthful anarchists resulted in the death (Pluto) of three bank (Mercury in Taurus) employees. Pluto in Saturn-ruled Capricorn represents sovereign debt.
Jupiter exaggerates market moves as authoritative Saturn attempts to retain orderly control of the situation. Jupiter/Saturn reflected the imbalance at the NYSE between buyers and sellers. The NYSE purposely slowed down trading due to limited liquidity in certain issues. This led to execution optimizing traders to bypass the NYSE and execute on less liquid venues. Blue chip stocks briefly traded at fire sale prices.
The Wall Street Journal estimates that high frequency trading firms account for around two thirds of overall market volume. Saturn represents rules and boundaries which Uranus likes to unexpectedly break through. Cautious Saturn opposing volatile Uranus can represent electronic trading systems that malfunction/shutdown after the market breaks through a certain level. The Journal reports several high frequency trading firms have rules to stop trading when market conditions become “weird.” Saturn opposed Uranus April 26. The previous oppositions (November 4, 2008 and February 5, 2009) brought high volatility and sharp and record breaking price moves that brought the market to multiyear lows while the September 15, 2009 alignment was far more benign.
The April 14 New Moon conjoined the NYSE’s natal Saturn in Aries, indicating that equities would be under pressure. The New Moon squared and reactivated the influences of the January 15 Solar Eclipse when markets were becoming turbulent over speculation that Greece would have to get bailed out or be forced out of the EU. The square is a 90 degree aspect which can equate to 90 days of time. Despite all the hype about Thursday’s dramatic drop, the indices are still trading above where they were three months ago.
Mars made its third and final conjunction to the NYSE’s natal Uranus in Leo, repeating the previous bearish alignment made during the Solar Eclipse. (Mars/Uranus likes risk; the first alignment on November 23, 2009 was bullish as it was a “risk trade on” day.) In either extreme, this energy raises the potential for wild market gyrations.
And finally at the time of Thursday’s severe drop, the Moon was squaring the NYSE’s natal retrograde Mercury in Taurus and conjoining natal Pluto in Aquarius, creating anxiety that something massive was happening beyond anyone’s ability to control.
Fears about Greece began last October as Saturn entered Libra and squared Pluto, indicating that sovereign debt fears had become the latest act of the financial crisis. Markets should become accustomed to operating in a heightened period of volatility, especially over the next few months as Mars, Jupiter, Saturn, Uranus, and Pluto form challenging alignments to one another.
Uranus will be moving into Aries May 27 and Jupiter on June 6, and conjoin June 8. The unabashed enthusiasm of Jupiter and Uranus in Aries can bring large rapid spikes that occur suddenly. However, alignments of Jupiter/Uranus to Mars, Saturn, and Pluto can bring large market gyrations that unexpectedly break the enthusiasm. There could be several “firsts” related to percentage and point size movements.
Right now the markets are fearful about Greece, Portugal, Spain, and so on down the line in the EU. These countries are and will be affected by the transits I have just described. But so is the U.S. where a run up in Treasuries and junk bonds could become the next bubble to burst.
*This influence is similar in nature to an opposition.
**The Moon was in Aquarius in Greece until late this morning (May 7).
WallStreetWeather.net Forecast For Week Of May 3, 2010
Summary Of Last Week’s Influences:
Contrary to the daily entries in last week’s Forecast, the stock market tanked on Tuesday, turned positive after Wednesday’s FOMC announcement, and was up all day Thursday. However, the combination of the Sun (speculation) conjoining Mercury retrograde, Venus (money) shifting into Mercury-ruled Gemini, and Saturn in Mercury-ruled Virgo opposing Uranus in Pisces did result in larger market moves and a 30% jump in volatility.
G&G (Greece & Goldman) dominated the financial headlines last week. Due to today’s earlier post on Warren Buffett and Goldman Sachs, this forecast is shorter than usual. As an update to this evolving story, my suspicions that Buffett’s involvement with Goldman extended to Goldman serving as a counterparty to many of Berkshire’s derivatives trades was confirmed after posting this afternoon.
Summary Of This Week’s Influences:
On Monday Mercury retrograde in Taurus will make a repeat performance of its trine to Pluto in Capricorn that first occurred on April 6. The Moon (sentiment) will also return to being in its waning phase in Capricorn. These influences put the focus on sovereign debt and the need to reduce deficit spending.
On April 6 as Neptune (credit; aid) opposed Greece’s Mars in Leo, yields on Greek debt and CDS to insure against default rose after it was reported that the IMF might be cut out of any aid package for Greece. Now the Mercury/Pluto aspect repeats itself and Mercury trines Greece’s progressed* Sun in Virgo and Jupiter in Pisces conjoins the sector of the country’s natal chart representing its reputation.
Greece is expected to receive a $146 billion rescue package, with the bulk of the money coming from other EU member nations. In a reversal from April 6, the IMF will be contributing the remainder of the money. Pisces is ruled by Neptune which conjoins the sector of the chart representing Greece’s workforce which is ruled by Jupiter. As reflected by Greece’s progressed Sun in Virgo and major planetary transits during 2010-11 affecting Greece’s natal planets representing the public, debt, and the nation’s banking system and economy, Greece must make severe cuts to its budget and the government must restructure entitlement programs and beef up tax collection.
Beyond the fact that EU member parliaments will have to vote to approve the measure is that the May 27 Full Moon in Sagittarius conjoins Greece’s natal Neptune and squares its progressed Sun in Virgo. Labor protests and credit concerns are likely to escalate.
Pluto turned retrograde when Mercury last trined Pluto. Capricorn is part of the earth element and Pluto rules wealth extracted from under the surface. This was when the tragic explosion at the Massey Energy mine in WV occurred, and new information could surface relating to this and other news relating to the mining industry.
Monday, May 3, 2010
Positive.
Happy Birthday, Daddy!
Tuesday, May 4, 2010
Positive trend bias, but could experience some wild intraday gyrations.
Wednesday, May 5, 2010
Negative early, then improves to choppy/mixed to positive before turning negative again in the late afternoon.
Thursday, May 6, 2010
Negative.
Friday, May 7, 2010
Positive on strong jobs report, but could reverse on profit taking going into the close.
*A mathematical calculation that moves the planets forward in time as a method of prediction.
Greece: July 24, 1974 4:00 AM EET Athens
Contrary to the daily entries in last week’s Forecast, the stock market tanked on Tuesday, turned positive after Wednesday’s FOMC announcement, and was up all day Thursday. However, the combination of the Sun (speculation) conjoining Mercury retrograde, Venus (money) shifting into Mercury-ruled Gemini, and Saturn in Mercury-ruled Virgo opposing Uranus in Pisces did result in larger market moves and a 30% jump in volatility.
G&G (Greece & Goldman) dominated the financial headlines last week. Due to today’s earlier post on Warren Buffett and Goldman Sachs, this forecast is shorter than usual. As an update to this evolving story, my suspicions that Buffett’s involvement with Goldman extended to Goldman serving as a counterparty to many of Berkshire’s derivatives trades was confirmed after posting this afternoon.
Summary Of This Week’s Influences:
On Monday Mercury retrograde in Taurus will make a repeat performance of its trine to Pluto in Capricorn that first occurred on April 6. The Moon (sentiment) will also return to being in its waning phase in Capricorn. These influences put the focus on sovereign debt and the need to reduce deficit spending.
On April 6 as Neptune (credit; aid) opposed Greece’s Mars in Leo, yields on Greek debt and CDS to insure against default rose after it was reported that the IMF might be cut out of any aid package for Greece. Now the Mercury/Pluto aspect repeats itself and Mercury trines Greece’s progressed* Sun in Virgo and Jupiter in Pisces conjoins the sector of the country’s natal chart representing its reputation.
Greece is expected to receive a $146 billion rescue package, with the bulk of the money coming from other EU member nations. In a reversal from April 6, the IMF will be contributing the remainder of the money. Pisces is ruled by Neptune which conjoins the sector of the chart representing Greece’s workforce which is ruled by Jupiter. As reflected by Greece’s progressed Sun in Virgo and major planetary transits during 2010-11 affecting Greece’s natal planets representing the public, debt, and the nation’s banking system and economy, Greece must make severe cuts to its budget and the government must restructure entitlement programs and beef up tax collection.
Beyond the fact that EU member parliaments will have to vote to approve the measure is that the May 27 Full Moon in Sagittarius conjoins Greece’s natal Neptune and squares its progressed Sun in Virgo. Labor protests and credit concerns are likely to escalate.
Pluto turned retrograde when Mercury last trined Pluto. Capricorn is part of the earth element and Pluto rules wealth extracted from under the surface. This was when the tragic explosion at the Massey Energy mine in WV occurred, and new information could surface relating to this and other news relating to the mining industry.
Monday, May 3, 2010
Positive.
Happy Birthday, Daddy!
Tuesday, May 4, 2010
Positive trend bias, but could experience some wild intraday gyrations.
Wednesday, May 5, 2010
Negative early, then improves to choppy/mixed to positive before turning negative again in the late afternoon.
Thursday, May 6, 2010
Negative.
Friday, May 7, 2010
Positive on strong jobs report, but could reverse on profit taking going into the close.
*A mathematical calculation that moves the planets forward in time as a method of prediction.
Greece: July 24, 1974 4:00 AM EET Athens
The Honorable Warren Buffett Polishes His Tarnished Goldman Sachs
Published by WallStreetWeather.net“Derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.” – Warren Buffett, 2002 Berkshire Hathaway annual letter to shareholders
With his Sun conjoining Neptune in Virgo, Warren Buffett has carefully crafted his public image to portray himself as the world’s most honorable value investor. Buffett excels in his role as the humble and thrifty man whose Midwestern values have kept him planted in the same house in Omaha for decades. With his Jupiter in Cancer conjoining the USA’s natal Sun, Buffett’s folksy style, fondness for eating American junk food, philanthropy, and wealth creation resonates with the country’s philosophical beliefs. Buffett is the only billionaire who is admired as much on Main St. as he is on Wall St.
Just as the public gets a glimpse of Buffett’s Omaha home but not when he’s California dreamin’ in Laguna Beach, the transits of Saturn and Pluto to Buffett’s natal Mercury, Mars, and Saturn are bringing to the surface evidence that shows a clear conflict between his words (Mercury) and deeds (Mars) that will ultimately affect his reputation (Saturn).
Pluto in Capricorn since 2008 has brought to the surface the dangers of opaque and unregulated financial products such as derivatives. In his 2002 letter to Berkshire Hathaway shareholders, Buffett was prescient about derivatives’ potential to create the liquidity crisis that gripped Wall Street in September 2008:
“Another problem about derivatives is that they can exacerbate trouble that a corporation has run into for completely unrelated reasons. This pile-on effect occurs because many derivatives contracts require that a company suffering a credit downgrade immediately supply collateral to counterparties. Imagine, then, that a company is downgraded because of general adversity and that its derivatives instantly kick in with their requirement, imposing an unexpected and enormous demand for cash collateral on the company. The need to meet this demand can then throw the company into a liquidity crisis that may, in some cases, trigger still more downgrades. It all becomes a spiral that can lead to a corporate meltdown.”
Pluto in Capricorn exposes the corrupt and manipulative influences occurring in the shadows of the corporate and government corridors of power. As Pluto exactly conjoined Buffett’s natal Saturn in Capricorn and Mercury in Taurus turned retrograde April 18 squaring Buffett’s progressed* Mars in Leo, media reports surfaced how Buffett acted to exempt Berkshire’s estimated $63 billion derivatives portfolio from financial regulatory reform legislation.
A front page story in The Wall Street Journal described how David Sokol, chairman of Berkshire subsidiary MidAmerican Energy Holdings who is speculated to be Buffett’s successor, lobbied lawmakers by emphasizing how important the issue is to Buffett.
Berkshire is Sen. Ben Nelson’s largest contributor, and together Sen. Nelson and his wife owned shares valued at around $6 million in late 2008. Just as he threatened to derail the healthcare bill unless he got goodies for Nebraska, Nelson originally inserted a provision in the derivatives bill passed by the Senate Agriculture Committee April 21 exempting Berkshire and other companies with existing derivatives contracts from being required to set aside capital to cover potential losses. Nelson was the only Democrat to vote with Republicans against opening debate on financial regulatory reform last week after Senate Democrats removed Nelson’s provision from the derivatives bill when it got incorporated into the overall financial regulatory reform legislation. While Nelson claimed he voted against the bill because he believed it would hurt auto dealers and Main St., Senate Banking Committee Chairman Chris Dodd said dropping the provision for Berkshire was the only issue the two discussed before Monday evening’s vote.
In his 2008 letter to Berkshire shareholders, Buffett describes (p. 15-19) Berkshire’s $37.1 billion in put contracts on the S&P500, FTSE100, Euro Stoxx50, and Nikkei 225 that come due between September 2019 and January 2028. Buffett claims the contracts are written so Berkshire very rarely puts up collateral and when it does, the collateral goes to a third party and the company still collects interest on it. Buffett wrote that “if we lose money on derivatives, it will be my fault,” as he personally initiated and monitors the 251 derivative contracts. In his 2009 annual letter written in February, Buffett writes (p.15) that derivatives can be “dynamite,” but assures investors that derivatives have never been a danger for Berkshire “- nor will it.”
Under the financial reform legislation, Berkshire’s collateral requirements would be material and might even require the company to have to start borrowing money to put up more collateral. Posting collateral might have an effect on the pristine credit ratings of Berkshire’s insurance subsidiaries.
Although his efforts to derail the derivatives legislation have been conducted out of the limelight, Buffett desperately defended Goldman Sachs (GS) at Berkshire’s annual meeting yesterday. He said the counterparties and not GS, were responsible for their actions and it is not GS’ fault if these “sophisticated investors” lost money. Buffett said it was “irrelevant” that hedge fund manager John Paulson was shorting the Abacus synthetic CDO that he paid GS $15 million to create as a vehicle to bet against subprime mortgages. He said he agreed with GS that receiving the Wells Notice from the SEC was not “material” to disclose to shareholders. Just as Buffett vigorously lobbied Senators to ensure they voted to reconfirm Ben Bernanke to a second term at the Fed, Buffett defended GS CEO Lloyd Blankfein. He said if Blankfein stepped down as CEO he hoped Blankfein "had a twin brother to succeed him."
Buffett said Berkshire receives “$15 a second” on its $5 billion investment in GS preferred shares at a 10% interest rate that Buffett arranged during the height of the financial crisis. Buffett bragged that GS is not going to call the preferreds anytime soon as GS will want to continue to show Buffett as a key investor in order to enhance its reputation.
In “Goldman Sachs: CDOs Custom Built To Fail,” I described the planetary influences leading to the SEC’s April 16 fraud charges against the investment bank. Like Buffett, GS has been lobbying hard to eliminate a provision of the financial reform bill that would require banks to sell off their derivatives trading businesses. Being bailed out by taxpayers and receiving the benefits of TARP did not deter GS from spending over $2.8 million on lobbying in 2009. Those lobbying efforts are spearheaded by the former aide to House Financial Services Chairman Barney Frank, along with assistance from former Democratic House Majority Leader Dick Gephardt and former Reagan Chief of Staff Ken Duberstein.
Last Tuesday’s Senate Subcommittee on Investigations hearing on GS was part of the committee’s 16 month investigation into the causes of the financial crisis. Blankfein and other current and former GS employees refused to show any signs of humility or regret over GS’ ethical transgressions despite the Committee’s evidence that GS sold other CDO deals to clients which the firm then betted against.
Fabrice Tourre is on paid leave from GS for an extended period of time, while the firm’s lawyers are representing his legal defense. But there’s no free lunch; Tourre’s defense is being molded for GS’ benefit – potentially to Tourre’s detriment. Tourre’s emails, from describing the Abacus CDO as creating a thing “which has no purpose, which is absolutely conceptual and highly theoretical” that was “a little like Frankenstein turning against his own inventor,” show GS was acting far beyond its claims of being nothing more than a “market maker” in a transaction involving “sophisticated investors.” Before ACA agreed to act as portfolio selection agent for the Abacus CDO, GS first approached GSC which rejected the offer “given their negative views on most of the credits that Paulson had selected,” Tourre wrote in an email.
A market maker is a facilitator for a transaction. In this capacity, a market maker may hold inventory for a very short period of time. If GS is a market maker, so is Macy’s because they sell things out of inventory too. The difference is that Macy’s or any another store does not intentionally sell products born to fail. During Chairman Carl Levin's questioning of Blankfein at the hearing, the Senator accused GS of actively selling tainted merchandise rather than fielding customer calls for quotes.
Mercury retrograde in Taurus conjoining GS’ stock chart’s natal Saturn and Mars in Leo squaring the chart’s progressed Mercury in Taurus Friday, sparked selling (Saturn) action (Mars) over potential news GS could face a second (Mercury) investigation. GS shares tumbled almost 10% to $145.20 after The Wall Street Journal reported the Manhattan U.S. Attorney’s Office is in the preliminary stages of conducting a criminal probe to investigate whether GS committed securities fraud in mortgage trading that concerns different evidence than the SEC’s case. While the Journal points out that many investigations take place without the government ever filing charges, it also notes that no Wall St. firm has ever survived criminal charges.
Jupiter in Pisces represents ethical and legal violations resulting from deceptive and fraudulent practices. Jupiter will oppose Saturn in Virgo May 23; past actions must be accounted for within the judicial structure. Saturn’s energies will be particularly prominent in late May through early June as the planet prepares to begin moving forward again. Jupiter closely conjoining Uranus in Pisces followed by the two planets conjoining in Aries June 8, will really shatter the illusions surrounding the false images cultivated by companies such as GS and individuals such as Warren Buffett who have led the public to believe their successes were predicated solely on their honorable intellect. Pisces is ruled by Neptune, and Neptune’s energies will be prominent as the planet of illusion and dissolution appears to be stationary retrograde in the sky from late May through early June.
Jupiter returns to its natal position about every 12 years. While a Jupiter return can be a time of opportunity and good fortune, GS Inc’s Jupiter return is being pressured by the opposition of Saturn and Uranus to its natal Jupiter in Pisces. Any potential break in the case perceived to favor GS is likely be temporary.
The Full Moon in Jupiter-ruled Sagittarius on May 27 puts the spotlight on ethical and legal issues and is a culmination point that anchors all of these energies and affects GS and the major players of this drama. Mars in Leo opposing Neptune in Aquarius (exact June 4) alerts attention to fraudulent trading practices. The Full Moon will conjoin GS Inc’s natal Pluto in Sagittarius, Mars in Leo will conjoin natal Mercury in Taurus, and Mercury in Taurus will square its progressed Sun in Leo. Mercury will conjoin the GS stock chart’s natal Sun in Taurus while Mars in Leo will square the chart’s progressed Sun in Taurus.
In mid-May Jupiter opposes Lloyd Blankfein’s natal Sun in Virgo and at the Full Moon Mercury in Taurus will oppose his natal Venus in Scorpio as it did the day the SEC announced its lawsuit. Mars will conjoin Blankfein’s natal Pluto.
Putting this all together, news about GS at this time could once again spur a swift market reaction as the Full Moon conjoining GS’ Pluto could illuminate the truth as more information is published regarding how the firm’s trading actions conflict with what GS communicated to its current and prospective clients. The reputation of GS and its leadership could come under further attack, affecting Blankfein’s ability to remain effective at the helm.
The Full Moon squares Buffett’s Sun in Virgo, Mars in Leo squares his progressed Sun in Scorpio, and Mercury in Taurus squares his progressed Mars in Leo. Buffett’s own actions and eagerness to defend GS could bring more reports about his own hypocritical views on taxation and increased concerns over his refusal to name his successor at Berkshire. While Buffett believes the wealthy should be taxed more, he’s proud of the fact that his charitable foundation ensures he pays as little tax as possible. Berkshire has never issued a dividend to its shareholders, since dividends are taxed at the corporate and individual levels which would hit Buffett with a big tax bill.
The real reason why Buffett is aggressive about defending GS is the potential liabilities that could arise if GS has to reimburse counterparties such as AIG if GS is found guilty of fraud. These obligations could become so great that GS might not be able to pay dividends on preferred shares.
Speaking of AIG, Mars in Leo at the Full Moon also conjoins Bernanke’s Pluto and conjoins Treasury Secretary Timothy’s Geithner’s natal Sun. The early June Mars/Neptune opposition present during the Full Moon affects Geithner’s natal Uranus in Leo and squares Bernanke’s progressed Mars in Scorpio. Both men went to great lengths to ensure GS’ survival during the financial crisis while inflicting highly punitive measures against AIG. Bernanke and Geithner insured that taxpayers fully reimbursed GS at par by using AIG as a conduit to funnel money to GS. As Bloomberg reported earlier this year, GS underwrote more CDOs than any other investment bank, then GS and other investment banks bet against them by purchasing CDS from AIG which the Fed has gone to great lengths to keep the details of these transactions secret.
Some Wall St. analysts believe Berkshire should be granted an exception if financial regulatory reform passes with the derivatives rules intact so the company’s capital is available for deployment in other investments. While Buffett is no doubt smarter about the terms in his derivatives contracts than AIG was, it’s important to remember that AIG was once a cash rich company too.
Wall St. needs to understand that when Saturn re-enters Libra July 21 the purpose of this transit until 2012 is to bring our attention to what is unfair and out of balance in order to create harmony and equilibrium. Saturn is rules and regulations and when it comes to financial regulatory reform, Saturn in Libra in its highest manifestation wants the law to be applied equally to all without any exceptions.
Mars will enter Libra in late July for the first time since the height of the financial crisis. As Mars conjoins Saturn and opposes Jupiter and Uranus in Mars-ruled Aries and the four planets square Pluto in Capricorn, they will form challenging planetary alignments to planets in the USA and the Federal Reserve charts, indicating that we are about to enter a new Act in the financial crisis that is once again connected to the banking system. Right now the Oracle of Omaha is not exhibiting the foresight to realize that this time even he might not be immune.
* A mathematical calculation that moves the planets forward in time as a method of prediction.
Warren Buffett: August 30, 1930 time unknown Omaha, NE
Ben Bernanke: December 13, 1953 time unknown Augusta, GA
Timothy Geithner: August 18, 1961 time unknown NYC
Federal Reserve: December 23, 1913 6:02 PM EST Washington, DC
USA: July 4, 1776 5:10 PM Philadelphia, PA
For GS-related data, click the link above referencing my previous post.
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