This week begins with the Moon in Taurus which almost always highlights the banking sector. The energies of the security-minded Moon express its energies well in Taurus as the Moon in the sign ruling money, tangible assets, and banking is focused on financial security and stability.
Expansive Jupiter presides over global issues. The combination of the Sun in Moon-ruled Cancer and the Moon in Taurus conjoining Jupiter in Taurus over the weekend reflected the decision by the world’s financial regulators to require 30 of the world’s biggest banks to hold between 1-2.5% additional capital as a percentage of risk-weighted assets on top of the 7% base capital requirement regulators had previously agreed to on September 12, 2010.
Neptune in Pisces knows no boundaries as everything and everyone is interconnected. Jupiter entered Taurus June 4 when Neptune’s energies were more pronounced as it has just turned retrograde from Earth’s vantage point. Jupiter and Neptune are not far away from their June 8 alignment which appropriately reflects Saturday’s decision in Basel that the percentage of additional capital required “will apply progressively, based on each bank's size, complexity, global reach and interconnectedness. The bigger and more systemically interconnected the bank, the more capital it will need to hold." The Wall Street Journal further elaborates: The rules also feature the threat of an additional 1% capital requirement on giant banks that grow bigger.”
To paraphrase what former Federal Reserve Chairman Alan Greenspan said on CNBC earlier this month, one of the reasons banks have so much money parked at the Fed is because the banks don’t have enough capital to take the money out. And since the excess reserves banks keep at the Fed carry a 0% risk weighting, anything banks invest in beyond U.S. Treasuries would carry a risk weighting greater than 0% depending on the type of asset.
Despite fierce lobbying by the banks, regulators were stubbornly against expanding the definition of common equity to include anything but banks’ common stock. Taurus energy is slow and steady, allowing the big banks until 2019 to comply.
Years from now after the global economy has successfully been rebuilt from the ground up, it is hoped the world’s regulators will see the wisdom of imposing the highest capital requirements when the economy is flourishing and the lowest requirements during economic downturns.
The second item of business coming out of the BIS was the release of its annual report aptly describing the energies of the harmonious alignment of Jupiter in Venus-ruled Taurus and Pluto in Saturn-ruled Capricorn (exact July 7) while Jupiter (growth) and Saturn (contraction/consolidation) are in a stressful alignment in signs ruled by Venus (money/banking).
Titled “Building a Lasting Foundation for Sustainable Growth,” the report notes that
“international financial imbalances (Saturn in Libra) are re-emerging.” "Addressing overindebtedness, (Pluto) private as well as public, is the key to building a solid foundation (Saturn) for high, balanced real growth and a stable financial system. That means both driving up private saving and taking substantial action now to reduce deficits in the countries that were at the core of the crisis."(Saturn and Capricorn rule government)
Here’s my favorite part from the report: “Highly accommodative monetary policies are becoming a threat to price stability.” “Dwindling economic slack and rising commodity prices have driven up the risk of inflation. In addition, "the persistence of very low interest rates in major advanced economies delays the necessary balance sheet adjustments of households and financial institutions.”
You can delay (Saturn) the debt (Pluto) and push to keep the status quo in place for only so long. The two year influence of Saturn square Pluto is almost over. As revolutionary Uranus in Aries squares Pluto over the next few years, unexpected events will instigate new reforms, reversing the extreme political elements that arose during the last two years.
The events in Basel Switzerland over the weekend reflect that beyond political lobbying which did manage to reduce efforts by U.S. regulators to impose a 3% additional capital requirement, there was no Tea Party or grass roots uprising to stop it! JThis should be a lesson (Saturn) for Republicans and bankers like JPMorgan Chase CEO Jamie Dimon who tried to take a page out of the Tea Party movement by attempting to bully Fed Chairman Ben Bernanke into limiting regulation a couple weeks ago.
The Sun in harmonious alignments to Jupiter, Saturn, and Uranus when Dodd-Frank (FINREG) was signed by President Obama last year indicate that regulatory leaders have the will to move forward with financial regulatory reform. (However, Mercury in Leo opposite Neptune in Aquarius means the road ahead is not always clear with regard to writing and administering the rules. Mars in Virgo conjoining Saturn reflects the tremendous amount of work involved to ensure regulators address every detail.) Saturn at zero degrees Libra conjoining the eastern horizon at the time the bill was signed indicates the financial system will get back into balance slowly over time as part of Pluto’s transformative process.
French banks (especially Societe Generale and Credit Agricole) are the most exposed to Greek debt. On Monday French banks will meet in Rome to work on a plan based upon reinvesting half the proceeds from maturing Greek bonds into new 30 year Greek bonds.
The Sun represents self-identity, leaders, and speculation. This week the Sun in security conscious Cancer squares Uranus in Aries (Sunday), opposes Pluto in Capricorn (Tuesday), and squares Saturn in Libra on Satur(n)day. The Sun completes the square, a cross pattern involving all four of the cardinal (action) signs. Mercury (communications), Venus (money/values), and Mars (action) in Cancer follow suit over the next eight weeks.
The Sun squaring Uranus can bring dictators, leaders, and rebels with far out there views who march to the beat of a different drummer to center stage. What is new, different, and revolutionary in one way or another is in focus now. So it’s not surprising that Reuters is reporting that Greece’s deputy PM warned today that rebel lawmakers may block some of the measures contained in the austerity plan that is expected to begin being debated in the Greek Parliament Monday. The Sun/Uranus can bring unexpected developments which can help in breaking free from established ways that have outlived their usefulness.
The Sun opposing Pluto can bring about power struggles to get the opposing side to reach agreement. Each side has what the other needs but neither side is at least initially willing to compromise. Debt, M&A, taxes, insurance, financial manipulation, and nuclear issues are in focus. President Obama will take up the talks on raising the debt ceiling Monday after House Majority Leader Eric Cantor walked out of talks that he said had reached an “impasse.” The “impasse” is not about raising taxes as Republicans would like the public to believe, but their refusal to implement what President Reagan referred to as “revenue enhancements.” (Raising revenue by cutting/eliminating tax deductions, loopholes, and subsidies that “free market” Republicans should be rejecting in the first place!) There could be a new development in the talks Thursday as Mercury opposes the USA Pluto.
The Moon in Mercury-ruled Gemini Tuesday through Thursday morning completes the Gemini New Moon cycle begun June 1. People are quick to act on their ideas with Mars in Gemini as well and are easily angered when their security is threatened. A two day national strike is planned in Greece beginning on Tuesday. (Tuesdays are ruled by Mars and Wednesdays by Mercury, Gemini’s planetary ruler).
The Moon enters its home sign Cancer Thursday afternoon, followed by the third and final Partial Solar Eclipse in one month Friday morning. (The Solar Eclipse/Cancer New Moon cycle will be addressed in a separate post later this week.)
Although the influence of the Sun square Uranus in particular and the Sun opposing Pluto greatly increase the potential for reversals (at least intraday) Monday and Tuesday, it appears that the real change in direction occurs on Wednesday. However, the downside energies are still likely to be stronger than the upside energies.
Monday, June 27, 2011
Negative. However, potential for improvement could reverse conditions to mixed intraday, but any improvement could reverse back again to negative.
Tuesday, June 28, 2011
Negative; but conditions improve in afternoon.
Wednesday, June 29, 2011
Choppy/mixed to positive bias.
Thursday, June 30, 2011
Friday, July 1, 2011