Autumnal Equinox Forecast: September 23 – December 22, 2011

Published by WallStreetWeather.net

Autumn began in the northern hemisphere September 23, 2011 the moment the Sun entered Libra (5:05 AM EDT). This post examines the planetary influences at the Autumn Equinox and how these themes could potentially play out during the next three months largely from a financial perspective.

Libra is the sign of balance; at the Autumnal Equinox the hours of day and night are roughly equal in length. This also occurs at the Vernal Equinox when the Sun enters Aries, the first sign of the zodiac. The Sun represents self-identity and its energies are enhanced in Aries the first sign of the zodiac which has the courage and boldness to begin new initiatives. The Vernal Equinox is the true New Year and functions like a New Moon while the Sun in Libra corresponds to the Full Moon. What began at the Vernal Equinox has reached a culmination point now.

Aries is Sunrise and Libra is Sunset as it is the opposite sign to Aries. Opposites attract because they share similar energies but express them quite differently. The Sun likes to occupy center stage; in Libra that stage is shared with others. As part of the air element, Libra’s currency of exchange requires a lot of social interaction and mental circulation of ideas and information. Libra energy recognizes that it is through relationships that we gain greater understanding of ourselves and the world we live in.

Symbolized by the scales of equilibrium, Libra is the bridge that serves to join together what is separated. Oppositions represent opposing forces whose disparate energies must be brought into balance to effectively work together.

The Sun and Mercury in opposition to Uranus in Aries and Pluto in Capricorn at the Autumn Equinox indicates a season of shocks and unexpected events requiring collaborative action mostly related to sovereign debt. These energies generate heightened volatility, wild swings and rapid reversals that mostly emanate from announcements and actions by government and corporate leaders. This highly erratic rollercoaster market environment is best suited for the most nimble and experienced market professionals. Uranus rules technology which could be subject to the most volatile shakeups.

Since mid 2010 the world has experienced a sample of Uranus squaring Pluto in Capricorn before they make their series of seven exact encounters during 2012-2015. Situations and economic conditions have become so extreme and out of control that it will force deep structural changes to be implemented that could never have happened otherwise. Transforming debt laden economies will require transitioning from current policies that disproportionately benefit a small but powerful group of individuals and corporations (the plutocrats) to one which benefits the nation and expands overall economic prosperity. The Sun/Mercury/Uranus squaring Pluto indicates that those in positions of power are not ready to compromise for fear of losing their influence. But Pluto exposes secrets, corruption and manipulation at the highest levels which could send shockwaves through the market.

For example, the Sun, Mercury, Uranus, and Pluto impacting the USA’s natal Venus and Jupiter in Cancer indicates radical overhaul of the entire U.S. tax code is a necessary component of economic recovery. The Equinox planets affect Greece’s natal Mercury, Venus, Moon, and Pluto. The Eurozone needs to ensure Greece pursues aggressive tax compliance. Yet even that won’t avoid eventual default unless the Eurozone agrees to a plan for Greece based on what the country can realistically repay rather than the amount of debt it owes.

The Sun favorably aspecting Mars in Leo (the sign of the Sun) as Mars harmonizes with Uranus helps instill confidence and courage to implement changes and reforms. It is an opportunity for industry leaders to form collaborative partnerships that foster innovation leading to development of cutting edge technologies and products.

The Sun and Leo rule speculation. An upsurge in solar activity impacts Earth’s magnetosphere and increases market volatility.(1) The Moon represents sentiment and its conjunction to Mars in Leo and square to Jupiter in Taurus reflects that retail investors should only buy what they would be comfortable keeping in their portfolio for awhile. These energies favor companies with the cash to provide shareholders with secure and steadily increasing dividends.

Jupiter’s harmonious alignment with Pluto (exact October 28) indicates that the largest corporations and the most financially secure individuals continue to benefit from record low borrowing costs. It is old line companies rather than young upstarts that will be consolidating profits through M&A and share buybacks.(2)

After the Sun, Venus is the most important planet in the Autumn Equinox chart since Libra is ruled by Venus. Venus rules money, material assets, and the banking system. (And most importantly LOVE!) Venus also rules Taurus (money, banking, material assets) while the Libra side of Venus represents financial relationships.

The relationship between the Sun and Venus strongly influences the stock market. Venus appearing in the morning sky (November 4, 2010 - July 11, 2011) tends to correlate to rising stock prices that often reach their peak each year during the time of the year when Venus is a morning star. I’ve mentioned multiple times over the last several months that it is unlikely the major indices will reach let alone surpass their Spring highs this year.

The generational lows of the Dow and the S&P were misleading as financials were a significant portion of those indexes going into the crisis. A careful review of the individual S&P sectors outside of financials does not show as dramatic a fall as the index as a whole. The current recession will likely be a more balanced sector by sector decline. If financials were weighted as strongly in today’s Dow and S&P indexes, it is highly likely they would be a lot lower than they are today. Using an apple to apple comparison, the market is a lot weaker than it appears.

In some respects the anticipated recession of today might be deeper than the Great Recession of 2008. The 2008 time period focused on the collapse of the financial system, primarily in the U.S. but with some worldwide implications. The rebound from 2008 was primarily led by the industrial sector which was stimulated by demand in the BRIC countries and Europe to some extent. Today we do have a stronger financial system in the U.S. Yet the BRIC countries are starting to weaken along with Europe’s imminent financial problems. This is why we don’t have an economic stimulus to pull the nation out of our current malaise.

Conjunctions of the Sun and Venus occur when Venus is transitioning from being a morning to an evening star (or transitioning from an evening to morning star).(3) The Sun and Venus conjoined in Leo August 16 when Venus was furthest from Earth on the other side of the Sun. Their conjunction in Leo represented the “Full Moon” phase of their relationship that began when the Sun conjoined Venus retrograde in Leo on August 17, 2007. This was when the first telltale signs emerged that speculation related to the housing bubble was creating liquidity issues at Wall Street’s investment banks. Hedge funds began reporting large losses as two funds owned by Bear Stearns filed for bankruptcy. The Sun and Venus represents central bankers. The Fed began lowering interest rates that day as the Fed, ECB and other central banks coordinated liquidity injections.

Venus is now low in the western sky just after sunset and will steadily rise in the evening sky as autumn progresses. Venus’s appearance in the evening sky through May 30, 2012 is a further indication that financial relationships could face further strain. Even though Venus is in its home sign Libra conjoining Saturn whose energies are enhanced in Libra, the best this alignment can do is to act as a brake that prevents the market from falling lower than it would otherwise. Saturn’s rings can keep the market range bound and delay but not avoid a decline. Saturn exerts downward pressure to ensure expectations and valuations are more in balance.

Venus conjoining Saturn in Libra indicates the world has yet to fully learn the financial lessons from the autumn of 2008. Relations between customers and counterparties were strained then. The potential for derivatives to once again be a factor is strong. Reputational risk is a concern. The desire to separate and/or spinoff the weakest links in the system might not be feasible as a challenging alignment between the Sun and Neptune in Aquarius indicates these links are too intricately intertwined.

Jupiter expands and Saturn contracts. Having the two planets that preside over the economic cycle in the signs ruled by Venus when Venus is in its evening star phase indicates the market desires solid fundamentals rather than speculating on promises of future growth.

Another factor that tends to bring increased volatility that lowers equity values is that Venus will be “Out-of-Bounds” (OOB) November 15-December 13.(4) An OOB planet tends to express its energies in the most extreme and “far out” way as planets OOB temporarily take on the wild and unpredictable characteristics of Uranus.

For example, Venus was OOB May 6 – June 8, 2010, the time of the May 6 “flash crash.” This is when the European sovereign debt crisis emerged onto center stage. The market suddenly and shockingly broke through multiple support levels.  The flash crash led the SEC to first test a new circuit breaker system June 7, 2010 to keep trading within “acceptable” boundaries. More recently Mars OOB (July 25 – August 22) sharply spiked volatility as it took the market on a rollercoaster ride to end lower than when it began.

Mercury will be OOB November 6-28 when it turns retrograde in Sagittarius November 24 (until December 13). Both planets will be OOB November 28, the day Venus is at its most extreme OOB. A big global crisis of one kind or another could erupt as Mercury retrograde (November 24 – December 13) squares the September 12 Pisces Full Moon. Global markets feared the European sovereign debt crisis would develop into another contagion on par with 2008. France and Italy are particularly in the spotlight during November/December. Mercury retrograde could uncover some serious ethical lapses. Some of the biggest economic and political ideological “truths” could be proven to be hypocrisy.

Mercury OOB further accentuates the crazy and chaotic energies of Mercury retrograde. Be prepared for potential problems with communications, travel and transportation (especially long distance travel and shipping), import/export, and publishing.

And it just wouldn’t be Mercury retrograde without Congress debating/enacting important legislation during this time! The deficit reduction committee must issue their report by November 23 which Congress must vote on by December 23. Mercury retrograde and two eclipses challenge the nation’s most fervently held ideological beliefs and propaganda (such as the “American Dream”) as these transits trigger the USA’s natal Mars/Neptune square. Military matters are in the spotlight along with contagion concerns.

Venus rules currencies and Mercury trades them, which raises the potential for some type of global currency stress erupting as the U.S. observes the Thanksgiving holiday. This occurs the day before the November 25 Solar Eclipse in Sagittarius squaring Mars in Virgo which could escalate violent acts and military tensions around the globe. The U.S. military could be pre-empting or responding to a surprise attack at home.

Events and situations occurring then will reach an explosive culmination at the December 10 Gemini Lunar Eclipse. This is significant as Gemini is ruled by Mercury which turns direct December 13, conjoining the degree of the November 25 Solar Eclipse. The eclipse squares the September 12 Pisces Full Moon as Uranus turns direct in the sky.

There is strong potential for explosions, wild weather conditions with high winds, and major earthquakes on or around the time of the December 10 Gemini Lunar Eclipse. Conditions now are highly prone to power outages and system malfunctions. The San Diego area could be the epicenter for such an earthquake or other extreme and highly disruptive event, extending out to Los Angeles, Las Vegas, western Arizona and the Baja Peninsula.

Backtracking to late October, Jupiter will oppose the Sun in Scorpio as it makes its closest approach to Earth until 2022 as it harmonizes with Pluto. Jupiter’s prominence then is likely to bring outsized market moves. Any optimism could evaporate by November 7 when Mars opposes Neptune as Neptune turns direct at the time of the November 10 Taurus Full Moon. This is the culmination point of a cycle that began February 20 when Mars and Neptune conjoined in Aquarius which was the height of global protests against those in power from Madison to the Middle East.

Markets have a greater potential to make more pronounced moves on the following dates:
September: 23, 26-29
October: 3, 6, 10-11, 13-14, 17, 19, 21, 24, 26, 28, 31
November: 1-2, 4, 7, 9-11, 14-15, 18, 22-25, 28
December: 1-2, 5, 9, 13, 19-20
(To be continued at the December 22 Winter Solstice.)

In the Autumn Equinox chart for the USA, Saturn rules the sector representing the stock market which can keep stock prices under pressure. Venus conjoining Saturn in the sector representing banks and the nation’s wealth indicates the market is worried about economic stagnation/contraction and bank earnings/projections in particular. The Sun conjoining the financial sector opposite Uranus in the sector of debt and opaque financial transactions squaring Pluto conjoining the sector ruling the stock market could bring unexpected shocks related to counterparty risk. These planets impact the USA’s natal Venus and Jupiter, indicating the wealthy who have benefited the most from fiscal and monetary policies since the financial crisis could also feel the fallout.

Political risks loom as Congress has not passed a budget for the 2012 fiscal year beginning October 1, followed by the deficit reduction agreement spending cuts.

This is the only USA seasonal chart this year that isn’t ruled by Venus. (Libra is rising on the eastern horizon for the other seasonal charts.) Virgo is rising and Mercury is in its home sign Virgo conjoining the Sun in Libra. This is significant since progressing the USA chart forward in time since the nation’s founding, the USA’s progressed Ascendant (rising sign) moved into Virgo just hours before the Autumn Equinox.

After being in Leo since early 1973, the USA progressed Ascendant will remain in Virgo until 2047. The Ascendant represents the nation’s outlook, attitudes, and outward appearance. Progressing from the much more self-centered and indulgent outlook of Leo to Virgo begins a seismic shift to get down to work improving the nation’s economic and physical health. The whole notion of work, the way we work, and employment is shifting. More products will be made in America as the nation undergoes a manufacturing and technological renaissance in the coming years. Americans will begin to realize the most patriotic thing they can do is to eat and live healthy, lose weight, and clean their minds of all the useless clutter to be able to think clearly about a positive future which cannot materialize unless actions are started now. This is what “personal responsibility” is all about! True patriots will remove themselves from being a burden to the health system and the government. Mars entering Virgo November 10 at the Taurus Full Moon will begin to activate this energy as it conjoins the USA progressed Ascendant.

Hot spots (areas of the world that could be more prominently featured in the news due to geophysical, geopolitical or other notable events):

USA: West Coast (especially California), Nevada, and Arizona.

World locations beyond the “usual suspects” (Eurozone, Libya, Egypt, Syria, Iran, Iraq, Yemen, Af-Pak): Baja Peninsula, Brazil, Iceland, Turkey, Jordan, Saudi Arabia, U.A.E., east Africa (especially Ethiopia/Somalia/ Kenya), Russia, Georgia, Turkmenistan, Japan, Australia, New Zealand. Public uprisings and violence could break out in central and western China.

Libra energy can be indecisive out of concern the wrong decision will be made. Libra shows us there are always choices, proving that we have free will and are not at the mercy of the hands of fate. Planetary prognostication can never be 100% accurate not just because individuals such as yours truly are prone to error, but because humans have free will. We can choose to completely ignore the planetary energies, choose to work with their most positive expression, or choose to express their most negative characteristics.

Humans can choose to build bridges or burn them.

(1)Spaceweather.com and NOAA’s Space Weather Prediction Center are the best sources for following solar activity.

(2)This alignment first occurred on July 7. The Moon was in Libra then as the Dow Jones Transports reached a record high. March 13, 2012 marks the final alignment of Jupiter and Pluto.

(3)Venus is retrograde about every 18 months and closest to Earth when the Sun conjoins Venus retrograde as Venus transitions from appearing in the evening sky to the morning sky. The Sun will conjoin Venus retrograde on June 5 and Venus will begin to rise ahead of the Sun beginning June 13, 2012.

(4) A planet is OOB when it travels outside the normal boundary of declination (23 degrees, 27 minutes) north or south of the celestial equator.

USA: July 4, 1776 5:10 PM LMT Philadelphia, PA



Federal Reserve Twisting the Financial System Painfully Out of Joint

Published by WallStreetWeather.net

The Federal Reserve announced September 21 it will sell a total of $400 billion in Treasuries with maturities 3 years or less to buy an equal amount of Treasuries maturing in 6-30 years by the end of June 2012. In the FAQ accompanying the FOMC statement, the Fed believes:

“The reduction in longer-term interest rates, in turn, will contribute to a broad easing in financial market conditions that will provide additional stimulus to support the economic recovery.”

Yet the FAQ admits that:

“The maturity extension program will provide additional stimulus to support the economic recovery but the effect is difficult to estimate precisely."

If the Fed is unsure how flattening the yield curve will affect the economy, then why did most members of the FOMC Committee except for regional bank presidents Richard Fisher (Dallas), Narayana Kocherlakota (Minneapolis), and Charles Plosser (Philadelphia) vote to act?

The answer can be found in the FOMC statement:

“Moreover, there are significant downside risks to the economic outlook, including strains in global financial markets.” [bold emphasis mine]

The Fed announced at its August 9 meeting that it would likely keep the zero to 0.25% fed funds target range “at least through mid-2013” as “downside risks to the economic outlook have increased.” Six weeks later the Fed is saying those downside risks have become “significant.”

“Global financial markets” indicates the Fed is concerned about a global economic slowdown impacting the U.S. economy coming on top of the impact of the European sovereign debt crisis on the financial system as I described in “Lehman’s Harvest Moon Returns to Haunt the U.S. Through the Eurozone.”

The Fed’s Maturity Extension Program would have to generate enough borrowing by consumers to spur economic growth to offset the damage it will cause to the banking system. The problem with the Fed’s logic is that there are three crucial elements that must be in place to spur consumer lending:

1. Economic conditions would have to at least stabilize and show signs of growth.
2. Banks net interest margin (NIM) would have to cover their cost of funding.
3. The risk weighted cost of capital would have to be stable to declining.

All of these conditions have not been met, and Wednesday’s Fed action will end up inflicting further damage to the financial system which will in turn cause additional economic contraction.

The Fed assumes that by reducing the interest rate on long term Treasury yields, it will in turn pull down the entire credit curve. While this would be true in good economic times, the margin between less riskier and riskier credits becomes significantly wider during challenging economic times which the Fed has clearly indicated the economy is currently experiencing. Therefore it becomes less likely borrowers with riskier credit will be able to cover their interest payments, likely causing leveraged companies to go into bankruptcy.

As the Fed flattens the yield curve, banks will continue to shrink their balance sheets rather than make unprofitable loans since expanding their loan portfolio requires banks to accumulate more capital to back up the loans. This is not feasible with bank stocks trading not far from their Great Recession lows.

Even if banks pay zero interest on deposits, fees for FDIC insurance, the cost of processing transactions, and operating their branches raise the cost of funds above zero. So as the Fed pushes intermediate and long term interest rates down, the NIM shrinks because banks can no longer reduce their cost of funds relative to revenues.

For example, if short term interest rates were 3% and long term interest rates were 6%, the Fed could lower each 0.25% and still leave the NIM stable. But with short term interest rates at zero, each notch lower in longer term interest rates directly shrinks NIM.

Monetary policy is forcing banks to switch from traditional lending to fee-based operations. On the consumer side, banks will look at consumer lending that “earns its cost of capital” in terms of both interest rate margin and fees. The focus will be increasingly on credit cards with high interest rates versus traditional lending such as home equity and auto loans. Banks will put even more emphasis on the risk weighting of particular loans as they move away from consumer to commercial lending.
Banks will shrink their balance sheets, avoiding businesses whose earnings are not far greater than the risk weighted cost of capital. Fed policy has not only evaporated the ability of consumers to earn interest income on their savings, but is resulting in consumers receiving less and paying significantly more for retail banking services. Already banks are charging fees to consumers with small balances in their savings accounts.

Fed policy will cause significantly more Americans to become “unbanked” as they are pushed out of the banking system. This has dangerous economic and societal implications as more consumers turn to Wal-Mart, check cashing stores, and other alternatives charging outrageous fees. Crime rates are likely to increase as more consumers keep their cash at home to avoid fees. Avoiding fees with banks offering free online bank accounts does not help the poor who cannot afford to pay for a computer or smartphone with a secure internet connection and security software.

The type of lending Fed policy is promoting is not the type of lending that promotes economic growth and employment. The companies able to line up financing are using it to acquire other companies. The end result is higher prices and increased unemployment. While the fat M&A fees have been a bright spot for banks, banks don’t want to hold any loans associated with the transactions.

The negative effects of monetary policy extend beyond banks and insurance companies. The Fed continuously cites their dual mandate imposed by Congress “to foster maximum employment and price stability.” Yet Fed policy could end up significantly reducing employment in both the public and private sectors.

Last month’s employment report showed positive gains in private employment but was offset with more reductions in government employment. For monetary policy to work, these employment losses would have to be offset by increased consumer and business borrowing to significantly spur enough economic growth to accelerate private employment.

Lowering long term interest rates even further will significantly raise the amount of pension contributions for state and local governments along with the federal government. Government employment will decline in order to pay for pensions.

When a company or municipal government has to contribute more to its pension plan, it will have to recover the cost through reductions in employment. Companies with traditional pension plans will also be affected as they are forced to divert cash to fund pensions instead of using the money to purchase equipment and hire more workers. Obviously this has a cascading effect throughout the economy as companies and governments that must contribute more to their pension plans have less available cash to buy new servers from Cisco or new computers from Dell.

Although long term Treasury yields have been declining as institutional investors seek to make a capital gain selling to the Fed, fears of a worldwide economic slowdown have spurred a flight to safety to U.S. debt. Viewed from a “free market” perspective, the Fed’s gloomy outlook already lowered yields to record low levels, so the marketplace has already done the Fed’s job for them! The market has become so fearful that they’re even willing to pay the U.S. Treasury to take their money as three month Treasury Bills have frequently turned negative.

Fed Chairman Bernanke has said numerous times that one of the remaining “policy tools” the Fed can employ to encourage banks to make more loans would be to lower the 0.25% interest it pays on the excess reserves banks are keeping at the Fed. Without raising Treasury interest rates this would further stress banks, causing them to increase fees to consumers or reject small deposits entirely. Banks may not have the capital to transition excess reserves into loans that bear a higher risk weighting than Treasuries.

“Whenever the energies of Uranus are pronounced, the market is not going to behave the way you expect it to.” – Weekly Forecast, September 19-26

After moving between positive to choppy and mixed conditions Wednesday, the major indices reversed to negative immediately after the FOMC statement was released. The stock market expected the Fed to do the Twist which didn’t work in 1961 and won’t work now. But with Saturn in Libra squaring the Fed’s natal Mars and Ascendant in Cancer, the Fed felt pressured to act. With Cancer’s ruler the Moon in Scorpio in the sector of the Fed’s chart ruling speculation, the Fed probably feared the market would decline without additional policy accommodation.

The Sun opposing Uranus created the exact opposite effect: Instead of pouring into stocks, investors dumped stocks and commodities. The Moon in Cancer reflected investors sought shelter in safe haven U.S. Treasuries.

The Sun represents leaders and its opposition to Uranus represents opposing forces. The same three members who dissented at the August 9 meeting dissented again. External opposition came in the form of a letter to Chairman Bernanke from House Speaker Boehner, House Majority Leader Eric Cantor, Senate Minority Leader Mitch McConnell, and Sen. Jon Kyl requesting the Fed “resist further extraordinary intervention in the U.S. economy.”

“Expect the unexpected” succinctly sums up the energies of Uranus. Or to borrow a phrase from Fed Chairman Bernanke, Uranus represents conditions and situations that are “unusually uncertain.” Bernanke should know with his progressed Sun and Venus (monetary policy) in Uranus-ruled Aquarius.

Uranus represents extremes and as its squares Pluto, those extremes become wildly accentuated. Pluto represents massive wealth as well as bankruptcy as Pluto rules debt. Pluto’s energies are strong now, having just turned direct September 16. When these two planets form a seven part series of exact squares during 2012-2015, their energies can bring shockwaves, chaos, and massive upheavals as conditions go too far in one extreme. The purpose of this process is to release what has become outmoded and corrupted so that transformation can occur.

Reflecting the energies of Uranus and Pluto which have been impacting the Fed’s natal Sun, Pluto and the sector of its chart representing its reputation (Midheaven), the Fed did initiate a policy reversal Wednesday by once again reinvesting principal payments of its holdings in agency debt and agency mortgage-backed securities in agency MBS. (Originially announced at the August 10, 2010 meeting, the program ended when the Fed began reinvesting agency principal payments in Treasuries.)

Besides impacting the U.S. and Europe, the September 12 Pisces Full Moon squared the Fed’s natal Venus which conjoins Chairman Bernanke’s natal Sun in Sagittarius. The Fed and its Chairman are getting panicky about how the situation in Europe could impact U.S. banks. Bernanke’s Sun opposite Jupiter in Gemini indicates he is prone to overshoot his arrows. His view is that it is always better to do too much than too little.

Venus conjoining Saturn in Libra describes the Fed rebalancing its portfolio to long term Treasuries. But it also represents the limits of monetary policy. Monetary policy is forcing banks to shrink their balance sheets. Venus (September 29), Mercury (October 6), and the Sun (October 13) conjoining Saturn in Libra indicates there are financial lessons to be learned as monetary policy has become so unbalanced it is about to break Libra’s scales.

Upcoming planetary influences suggest major challenges for the Fed and its Chairman as events occurring during the Pisces Full Moon period (September 12-26) will return in November/December. More policy and/or statement changes are likely to occur at the November 2 and particularly the December 13 FOMC meetings.

Mercury turns retrograde November 24, conjoining the Fed’s natal Venus and Chairman Bernanke’s natal Sun in Sagittarius at the time of the Sagittarius Solar Eclipse. This could indicate a change/reversal in policy communication is underway that is greatly influenced by conditions abroad. Communications could relate to inflation/inflation targeting.

At the same time, Venus in Capricorn squaring Uranus in Aries as Venus conjoins the Fed’s natal Sun and Uranus conjoins the Fed’s Midheaven while both impact the Fed’s Pluto can bring new policy actions that are unexpected. This is a harbinger of when Uranus in Aries turns direct the day of the December 10 Gemini Lunar Eclipse, conjoining the Fed’s natal Midheaven and squaring the Fed’s natal Sun/Pluto opposition.

Communications are a major issue with the eclipse in Mercury-ruled Gemini and Mercury retrograde in Gemini’s opposite sign Sagittarius. The eclipse squares the September 12 Full Moon and opposes the Fed’s Venus and Chairman Bernanke’s natal Sun, likely fulfilling the themes that emerged in November. The Fed Chairman is likely to face hostile opposition from internal and external sources that current policies need to be reversed. Information could emerge relating to a secret financial arrangement that casts the Fed and the Chairman in a negative light. All this comes leading into the December 13 FOMC meeting as Mercury turns direct on the degree of the November 25 Sagittarius Solar Eclipse as Ben Bernanke celebrates his 58th Birthday.

Monetary and fiscal policy intersect as Saturn in Libra squares the Fed’s Neptune in Cancer which exactly opposes the USA’s natal Pluto in Capricorn at the time of the Winter Solstice. Difficult decisions must be made to get the nation’s fiscal house in order and expand the economy. Saturn’s cold hard facts of economic reality conflict with the Fed’s idealistic mathematical models. This could be a turning point for the Fed to initiate a change in course before the nation’s financial foundation is further eroded.

Saturn squaring the USA Pluto occurs at the same time Congress must vote on the deficit reduction committee’s recommendations. It is time to close tax loopholes and deductions that have benefitted only the largest corporations and the wealthiest and most influential individuals. Likewise, the Fed must wakeup to reality that monetary policy has reached its limits.

Federal Reserve: December 23, 1913 6:02 PM EST Washington, DC
Ben Bernanke: December 13, 1953 time unknown Augusta, GA
USA: July 4, 1776 5:10 PM LMT Philadelphia, PA

WallStreetWeather.net Forecast For September 19-26, 2011

Summary Of Last Week’s Influences:
Events in the Eurozone largely overshadowed most other market events last week. (See “Lehman’s Harvest Moon Returns to Haunt the U.S. Through the Eurozone”)

As described in the prior week’s Forecast, the energies of Pluto in Capricorn are more pronounced September 12-21 as Pluto from Earth’s vantage point appears stationary in the sky as it turned direct September 16. Pluto in Capricorn rules sovereign debt which is one of  the reasons that the Eurozone crisis has become more intense now. I wrote last week that merger activity could occur over the weekend. This actually occurred on Friday over speculation that United Technologies (UTX) might make a double digit acquisition in the aerospace industry (Goodrich) that it would need to obtain financing to do.

Pluto rules death and matters related to the deceased. On Tuesday the FDIC ruled that the nation’s largest banks must submit living wills by July 1, 2012.

Pluto rules insurance and matters of life and death which seems to be an obsession with the Republican candidates. In the first week’s GOP presidential debate, Gov. Rick Perry was practically gleeful that he signed off on so many executions in Texas. At last Monday evening’s debate, the other candidates stood by speechless while Rep. Ron Paul alluded that a person without health insurance should be allowed to die. Which caused the Tea Party audience to break out in a chorus of “let him die!” (So much for the GOP's midterm election campaign mantra to “repeal and replace”!)

If Republicans cared as much for the born as the unborn, every American would have health insurance.

Rep. Paul said he would have advised the person “to have a major medical policy.” But as Paul Krugman states in his succinct New York Times op-ed, there are people who cannot obtain health insurance at any price because they have “chronic conditions.” What even Krugman fails to mention and the politicians and the public don’t seem to understand is that healthy individuals are frequently rejected by health insurance companies for potential risks that may never occur in their lifetime.

Rep. Paul is a medical doctor. In the previous GOP debate, Dr. Paul thought it would be perfectly fine to bring drugs to market without having undergone testing and the regulatory approval process. Rep. Paul believes that the uninsured should be put in the demeaning state of begging for charity from churches when they get sick. In Rep. Paul’s fantasy world, it is the churches who will determine who will live and who will die. Religions of all stripes were either active in lobbying to block healthcare reform or stayed silent on the issue (which shows you how much “compassion” they possess).

There must be something in the water (or lack thereof) down in Texas since Ron Paul is not the only candidate emanating from there preaching hypocrisy. Gov. Rick Perry (like all the GOP candidates) believes it’s unconstitutional to mandate individuals purchase health insurance. Yet he thought it was perfectly fine to issue an Executive Order mandating that parents in Texas vaccinate their teenage daughters with Merck’s Gardasil, an expensive, risky and unneeded vaccine. In an exchange over the Gardasil issue with Rep. Michele Bachmann, Perry came off as proudly stating that as the receipient of $30 million in campaign contributions it would cost more than a $5,000 from Merck to buy his influence.

As governor of Massachusetts, Mitt Romney enacted healthcare legislation that mandates every person in Massachusetts obtain healthcare coverage or pay a penalty. Yet presidential candidate Romney believes individuals are free to die in every state except Massachusetts! Former Utah governor John Huntsman touts he set up an exchange to help residents in his state obtain health insurance. But what he doesn’t say is that the exchange is only open to businesses while individuals are free to die.

Summary Of This Week’s Influences:
Even though Pluto turned direct on Friday, its energies are particularly pronounced through Wednesday as it still appears to be motionless in the sky from Earth’s vantage point.

Mercury in Virgo and Venus in Libra in their home signs until September 25 indicate a market looking to latch onto any piece of information that could be construed as positive.

Tuesday’s Last Quarter Moon at 9:39 AM EDT in Mercury-ruled Gemini further reinforces sentiment solely focused on making money trading the news. In the chart set for Washington DC, market volatility is likely to rise as feelings of hope erode leading up to the September 27 Libra New Moon. The Sun in Virgo in harmony to the NYSE’s natal Sun in Taurus could help keep stocks higher than they would otherwise be. Virgo rules employment and the armed services. Both will be in the news as President Obama aggressively promotes his American Jobs Act to Congress. Mars ruling the sector representing employment in a harmonious alignment to Uranus in Aries (the sign ruled by Mars), could indicate an increase in manufacturing, engineering and tech jobs.

Now there will be three planets in their home signs during the time the Moon is in Cancer from Tuesday at 2:53 PM until Thursday at 9:22 PM.(1) On Wednesday, concerns over the Eurozone and anticipating what’s in the FOMC announcement could prompt investors to seek shelter in U.S. Treasuries and “safer” investments.

Pluto rules interest rates and debt; Pluto in Capricorn specifically rules sovereign debt. While few believe at this point the Fed would engage in a third round of quantitative easing, many anticipate the Fed will revive the Twist. This notion really took off when Mercury was retrograde. (See “Federal Reserve Surprises as Mars squares Uranus”) The Fed’s announcement that it was “likely” to maintain the Fed Funds Rate until mid-2013 was announced when Mercury was retrograde opposing Neptune, the planet of confusion and illusions.  This increases the possibility the Fed is not “likely”to keep its commitment.

Back in April I wrote that the Fed would begin to reverse the overly accommodative policies it first put in place during the 2008 financial crisis. The transits of Saturn, Uranus, and Pluto to the Fed’s natal chart indicate the Fed has reached the limit of what it can do without overflowing the bathtub.

Uranus brings reversals, unexpected and unusual events, and initiating actions that haven’t been done before (Uranus in pioneering Aries). QE3 and Twisting wouldn’t qualify. Fed Chairman Bernanke’s progressed Sun and Venus are conjoined in Uranus-ruled Aquarius. If the Fed does anything, it will be something completely new and different. Uranus is the rebel and non-conformist. Since the market expects the Fed will do something, doing nothing would take the market by surprise.

The luminaries shift signs before the market opens Friday. The Moon moves into Leo the sign of the Sun which rules speculation, Thursday at 9:55 PM (until Sunday at 3:47 PM). Autumn arrives in the northern hemisphere Friday at 5:05 AM when the Sun enters Libra until October 23. (More on the Autumnal Equinox in a separate post that will appear on the blog by Friday morning.) Like the Summer Solstice Forecast, the post will include dates that the market could experience large moves. Friday, September 23 and Monday, September 26 will be on the list.

Unexpected shocks and reversals could occur over the weekend as the Sun opposing Uranus (exact Sunday evening) indicates that Uranus is currently at its closest approach to Earth this year. Whenever the energies of Uranus are pronounced, the market is not going to behave in the way you expect it to. Reversals, heightened volatility, wild gyrations and record breaking moves that breach support and resistance levels describe how the energies of Uranus influence financial markets.

The Moon enters Mercury-ruled Virgo Sunday as Mercury enters Libra Sunday evening until October 13. Once the Moon enters Libra Tuesday, half of the planets will be in Libra. It’s time to collaborate, cooperate, and get things back in balance. The market has been so myopically focused on Europe that it seems to have forgotten the fiscal issues looming at home. Friday, September 30 marks the end of the federal government’s 2011 fiscal year budget as the 2012 FY budget has yet to be approved.

Tuesday, September 20, 2011
Improving conditions as the day progresses.

Wednesday, September 21, 2011
Negative bias.

Thursday, September 22, 2011
Reverses to positive.

Friday, September 23, 2011
Negative.

Monday, September 26, 2011
Negative.

Lehman’s Harvest Moon Returns to Haunt the U.S. Through the Eurozone

Published by WallStreetWeather.net
Financial markets were bullish on the third anniversary that Lehman Brothers filed for bankruptcy. This was not the result of economic growth but a reaction to the announcement that the ECB in coordination with the Federal Reserve and other major central banks will provide access to U.S. dollar funding under the same type of arrangements created following Lehman’s demise.(1)

Full Moons mark a culmination point as the light of the Moon shines like a spotlight on issues that we are aware of but prefer to ignore or delay due to difficulty deciding what to do. Known as the Harvest Full Moon, the Full Moon in Pisces illuminates issues that raise fears of contagion concerns relating to credit. (The origin of the word credit means “to believe”). The Pisces Full Moon influences the final half of the Virgo New Moon cycle (September 12-26, 2011).

Pisces and its planetary ruler Neptune dissolve boundaries to demonstrate how interconnected everything is. Greece represents 2% of the Eurozone’s economy, but a Greek default would likely create a contagion effect that spills into the other PIIGS which includes the much larger economies of Italy and Spain, as their borrowing costs would substantially rise.(2) An agreement reached by Eurozone leaders on July 21 to expand the European Financial Stability Fund (EFSF) established in May 2010 to provide an additional €8 billion for Greece must be ratified by all 17 Eurozone countries which is estimated to take a couple of months. Finland is demanding Greece put up additional collateral to gain its approval. Greece is having trouble meeting its deficit reduction targets under the terms of the original bailout. Without additional funding, Greece appears to only have enough funds to operate through the end of September.

This has created a problem for the largest European banks (primarily the French and German banks) that own the bonds of Greece and the other PIIGS. According to European Banking Authority data, European banks hold €98.2 billion of Greek sovereign debt, €317 billion Italian government debt, and about €280 billion Spanish bonds.(3) European banks loaded up on Eurozone sovereign debt because bank regulators gave it a zero risk weighting. Since regulators believed the debt held zero risk, the banks did not have to hold any capital against their holdings of sovereign debt.

Calculations made by Autonomous Research concluded that 43 large European banks hold debt in troubled sovereigns that is equal to 63% percent of those institutions’ book values.(4) Substantial markdowns or a default of these bonds would force banks to raise more capital, further inhibiting their ability to lend. No one knows how such a scenario would play out since two rounds of stress tests on European banks failed to factor in how the banks would hold up if a country defaulted on its debt.

Lehman’s demise under the light of the September 15, 2008 Pisces Full Moon created a tsunami of systemic risk that nearly drowned the global financial system. Pisces energy is good at denial, becoming euphoric at any signs of a rescue on the horizon. But euphoria rapidly turns to panic at even the slightest glimpse under the veil of illusion. Markets are euphoric now, but the energies of the September 12, 2011 Pisces Full Moon reflect eerie similarities between the U.S. emanated crisis of 2008 and the Euro sovereign debt crisis now. Pisces rules the sea and tsunamis, which is why I’ve presented this imagery. So does The New York Times’ Gretchen Morgenson in the opening of her latest column: “The debt crisis in Europe has finally, and officially, washed up on American shores.”(4)

U.S. money market funds had provided a primary source of U.S. dollar-dominated short term funding for European banks, but that source has been steadily drying up in the heat of the Summer Sun. A dependency on commercial paper rather than deposits for short term funding is what created a liquidity crisis that led to the demise of Lehman. Yet according to Fitch Ratings, the 10 largest U.S. money funds still hold $309 billion in Euro bank debt obligations out of the funds $658 billion total assets. (4)

Venus rules currencies and banking. Venus entered its home sign Libra at 10:40 PM EDT September 14. Libra is an action-oriented (cardinal) sign that strives to create harmony and balance through relationships/partnerships, collaborative and coordinated efforts between two or more parties. So on the first business day that Venus was in Libra in Europe and the U.S. which just so happened to be September 15 (the third anniversary of Lehman’s collapse), the ECB announced its coordinated arrangements with the other central banks in an effort to help ease liquidity problems for Euro banks.

The Pisces Full Moon challenged the ECB’s natal Sun in Gemini, along with the Fed’s natal Venus in Sagittarius (which conjoins Fed Chairman Bernanke’s natal Sun in Sagittarius), Gemini’s opposite sign. The Sun indicates the ECB’s lead role while the Fed (Venus) provides the dollars. However, Venus in Libra opposing the sector of the Fed’s chart representing its reputation and squaring the Fed’s natal opposition between the Sun in Capricorn and Pluto in Cancer indicates there is more monetary action going on than swap arrangements alone.

Mercury the planet of communication in its home sign Virgo was in harmony with Jupiter in Taurus (the other sign ruled by Venus which rules banking, money, and assets). This influence helped insure the announcement generated a big market impact. Taurus the bull viewed the announcement and the prior day’s optimistic statements by Treasury Secretary Geithner that there was “not a chance” of a Lehman Brothers-type event occurring in the Eurozone, together with a conference call between Germany, France, and Greece as a reason to rejoice.(5) But the fact that the market took a temporary dive Wednesday morning after initially misinterpreting Austria’s decision to delay taking a vote to expand the EFSF as a rejection, shows the underlying fundamentals of the rally are not solid.

While the major indices were unfazed by Treasury Secretary Geithner’s warning Friday that the sovereign debt crisis has brought “catastrophic risks” to financial markets, people should be wondering why Geithner took the “unusual” step of appearing at a conference of Eurozone finance ministers in Poland when his plate is piled sky high with fiscal responsibilities at home as indicated by Saturn in Libra squaring his natal Venus in Cancer.

Venus exactly conjoined his natal Mars in Libra Friday which explains why the Treasury Secretary is expending so much energy trying to broker a solution to avoid a default in the Eurozone. Jupiter in Taurus opposing Geithner’s natal Neptune in Scorpio reflects that his grand plan to leverage the money already in the EFSF by having Eurozone governments guarantee the debt of financial institutions for a fee so that private investors would feel comfortable buying the debt to ease the liquidity crisis.(5) A program similar to the TARP has been estimated to cost up to $1 trillion to recapitalize Eurozone banks. The political climate in the Eurozone indicates this is an unlikely path.

Scorpio is ruled by Pluto, the planetary energy ruling money lending, debt, defaults/bankruptcy, insurance, and anything that is occult and opaque. Since Pluto entered Capricorn the sign of government in 2008, so much private debt has been transferred to public debt at a time when public debt had already reached unsustainable levels. Ruled by the contractive energies of Saturn, Pluto in Capricorn reflects governments implementing austerity measures to reduce their deficits. Capricorn represents frozen conditions, and Pluto in Capricorn reflects lending conditions that have become frozen over collateral issues. Uranus the planet of change and revolution indicates current conditions will unexpectedly shift so Pluto’s process of decay, death, and rebirth can begin to get underway.

Pluto’s energies are more potent now as Pluto appears to be stationary in the sky from Earth’s vantage point September 12-21, as Pluto turned direct September 16. In another eerily similar scenario to the Summer of 2008, the cost of insuring the bonds of the Euro banks reached levels higher this Summer than at the time of Lehman’s collapse, and Libor rates have been steadily rising as they did then.(3) Credit defaults swaps (CDS) are pricing in a 98% probability that Greece will default on its debt.

CDS are pure Pluto: an opaque and unregulated insurance-type product that trades in secret. No one knows how to value (Venus) the CDS-traded private transactions. While the housing crisis was not ignited by CDS, CDS amplified the damage many fold. The trouble with banks expressing their exposure to European debt CDS as a net number is that it doesn’t reveal counterparty risk (Libra!) such as AIG and the monoline insurers.(6)

The main reason AIG was rescued by the government following Lehman’s demise was because of the contingent risk that AIG would fail as a counterparty and drag down the rest of the financial system along with it. It could be argued that one of the factors that brought down Merrill Lynch (which was acquired by Bank of America) was that the protection Merrill purchased from the monoline insurers had to be written down.

Libra represents the counterparties to a transaction. It was counterparty risk that brought the financial system to its knees in September 2008 as the Sun, Mercury, Venus, and Mars in Libra squared Jupiter in Capricorn which expanded Lehman’s collapse into a global crisis that resulted in large scale government intervention.

The Dodd-Frank financial reform legislation passed last July attempted to address counterparty risk by forcing standardized derivatives contracts onto exchanges. Lobbying by the banks, individual companies, and Warren Buffett is stalling the rules making process to implement exchanges being the counterparty to all standardized derivative transactions. These parties do not want to relinquish the profitability of opaque trading and also do not want to have to post margin on their transactions.

When U.S. banks claim their net exposure to European sovereign debt is very low, that assumes there is no counterparty risk. What really matters is the bank’s gross exposure (i.e. who the bank is a counterparty to on each side) that banks will not publicly reveal. A bank’s net exposure is meaningless if the counterparties providing the protection run into financial trouble and cannot meet their obligations.

Returning to the interconnectedness of Neptune and Pisces, if one counterparty fails it creates systemic risk by causing a chain reaction that can cause other counterparties to fail. The parties at risk might not be who you think they are as some of the nation’s top commercial banks are the largest derivatives traders. In essence the FDIC is indirectly backing derivatives through insuring deposits at commercial banks. This is why I believe Treasury Secretary Geithner is being so aggressive with Eurozone leaders to pull out all the stops to prevent a default that would trigger CDS payouts.

The degree of the 2008 Pisces Full Moon exactly opposed the USA’s natal Neptune in Virgo, exposing the interconnectedness of the U.S. financial system as it shattered the illusions of the “American Dream” (home ownership). The 2011 Pisces Full Moon squared the USA’s natal Mars in Gemini. Mars in Gemini is located in the sector of the USA chart that represents America’s relationships with other nations as this is the sector of the chart naturally ruled by Libra. Mars in Gemini squares Neptune in Virgo in the sector ruling ethics and foreign interests, reflecting the USA’s aggressive, critical, and “preachy” attitude toward other countries as America seeks to aggressively promote its idealistic vision abroad.

There are several planetary connections between the U.S. and Greece. There are financial connections (USA Venus in Cancer exactly conjoins Greece’s Venus; USA Venus and Jupiter in Cancer squares Greece’s Moon and Pluto in Libra). Greece’s Ascendant (the nation’s outlook) which conjoins Saturn in Cancer conjoins the USA Sun in Cancer. The USA has a lesson to learn from its financial relationship with Greece as both nations undergo a major economic restructuring. Credit shocks describe Greece’s natal Neptune in Sagittarius opposing the USA Uranus in Gemini. The Sun represents the nation’s identity and its leadership. Progressing the charts forward in time, Greece’s progressed Sun in Virgo exactly opposes the USA progressed Sun in Pisces. This creates a “Full Moon” energy similar to the Pisces Full Moon.

Greece’s progressed Mars in Virgo exactly squares the USA Mars and conjoins the USA Neptune. Expanding the IMF’s financial assistance to Greece is an unlikely option in the current political climate since the U.S. is the fund’s biggest contributor. Yet some type of U.S. financial aid intervention could occur to prevent the spread of systemic risk from a Greek default spilling over into in the U.S. financial system. Greece’s progressed Mars conjoins President Obama’s Mars in Virgo. Virgo is a dualistic energy; President Obama’s first financial crisis emanated from the housing bubble bursting and the second crisis relates to foreign and domestic (U.S. deficit) sovereign debt.

The Pisces Full Moon is definitely heating up the action on both sides of the Atlantic as Greece’s progressed Mars also conjoins the natal Mars for Europe’s Birthday (the Schuman Declaration) which called for a united Europe. This increase in activity was foreseen in the chart for the August 28 Virgo New Moon. And the Full Moon conjoined the natal Moon in Pisces in the chart for January 1, 2001 when Greece became a member of the Eurozone. The Moon squaring Pluto in Sagittarius and Venus in Aquarius squaring Jupiter and Saturn in Taurus at the time creates further challenges to the planetary patterns in Greece’s natal chart where the Moon conjoins Pluto and Venus conjoins Saturn. Too much debt and not collecting enough tax revenue is putting enormous pressure on the finances of the Eurozone and Europe’s banks which in turn affects the global financial system as Jupiter once again transits Taurus.

The Treaty on the EU commonly referred to as the Maastricht Treaty, officially created the European Union which called for a common currency leading to the creation of the Euro. The 171 year conjunction of Uranus and Neptune in Capricorn at the time the Treaty went into effect in 1993 reflects changes in government structures that dissolved old boundaries and borders that had historically existed for centuries between European nations. Mercury retrograde conjoining Mars and Pluto in Scorpio increases the potential the goals of the treaty could come undone through the bankruptcy of a member nation. The progressed Sun in Scorpio conjoined natal and progressed Pluto in its home sign Scorpio last summer. This indicated that failure to establish a bailout fund last year could have resulted in the bankruptcy of a member nation which at that time could have easily led to the dissolution of the Eurozone. (A similar energy occurred when Pluto in Scorpio conjoined the USSR’s natal Sun which resulted in the breakup of the Soviet Union.)

As Saturn in Libra conjoins the Treaty’s natal Venus and squares the Uranus/Neptune conjunction (exact late September/early October), unexpected shocks are likely to occur resulting from leaders imposing austerity measures on member nations that are so tight it becomes impossible for the countries to stay solvent unless these restrictions are relaxed.

Between now through September 28, Venus, the Sun, and Mercury in Libra will oppose Uranus in Aries and square Pluto in Capricorn. Eurozone leaders must reach agreement to provide immediate funding and easing of austerity measures if Greece is to avoid defaulting before month’s end. All of these energies are contained in the chart for the September 27 Libra New Moon which exactly conjoins Greece’s Moon/Pluto conjunction in Libra.

Every chart - from the PIIGS, France, and Germany, to the U.S. is impacted by the Libra New Moon which features the Sun, Moon, Mercury, Venus, and Saturn in Libra. Jupiter in Taurus brings the total number of planets ruled by Venus to six. The strong Venus energies are reinforced as the New Moon impacts the natal or progressed Venus placements for Europe, Greece, the U.S. and Italy. The New Moon connects to placements in these charts along with the charts for the Euro and the other PIIGS. At best, these energies could bring additional funds and more accommodative arrangements for Greece. A more likely scenario indicates unexpected shocks in store as Greece’s debt troubles start to impact counterparties in swap transactions as dissention among Eurozone members fails to shore up additional financial support for Greece.

Congress failed to pass the TARP legislation on the day of the September 29, 2008 Libra New Moon which squared the USA Venus/Jupiter as it does now. Exactly three years to the day after the U.S. House failed to pass TARP, the German parliament is scheduled to vote on approving expanding funding for the EFSF to provide a second bailout tranche to Greece. Venus conjoins Saturn that day with the Moon (sentiment) in Scorpio which could bring fears of bank writedowns on the debt they own.

These influences occur at the same time Saturn conjoins the Euro’s natal Mars and the USA’s progressed Mars in Libra while squaring the 1993 Uranus/Neptune conjunction in Capricorn. Signs of serious reductions in military spending in the U.S. are part of the fiscal reductions that could elevate the dollar as the Euro’s value comes under pressure. These influences are reinforced at the October 11 Full Moon in Mars-ruled Aries and the fact that the Sun conjoining Saturn October 13 conjoins the Maastricht Treaty’s natal Venus.

If Greece’s situation is not resolved or is only given a temporary “fix,” then the Eurozone sovereign debt crisis is likely to accelerate beyond Greece’s borders, reigniting the other Eurozone countries into crisis as Mercury turns retrograde on November 24, the day before the Solar Eclipse in the global sign Sagittarius. November 24 is a public holiday in the U.S., a day that has tended to bring large moves in foreign markets that usually correspond to a stronger dollar in reaction to global financial and geopolitical events.

As mentioned in previous posts, Venus appearing in the evening sky September 23 through Spring 2012 indicates equities are likely to decline in value as Venus is in the weaker part of its dualistic cycle. The need to collaborate and compromise to reach agreement becomes particularly urgent during this period.

According to the EU’s website, “The circle of gold stars [in the EU’s flag pictured above] represents solidarity and harmony between the peoples of Europe. The number of stars has nothing to do with the number of Member States. There are twelve stars because the number twelve is traditionally the symbol of perfection, completeness and unity. The flag therefore remains unchanged regardless of EU enlargements.”

There are 12 signs of the zodiac reflecting 12 energies of expression. Since a chart contains 12 sectors, each individual or entity’s chart expresses the energies of all 12 zodiac signs. As the last sign of the zodiac, Pisces has absorbed the energies of all the signs preceding it. The Pisces Full Moon illuminates that twelve really becomes one.

Uranus square Pluto indicates the world has entered unchartered waters where a sovereign debt could be anything but “orderly.” The U.S. and Europe didn’t fully pay attention to everything the 2008 Pisces Full Moon illuminated, so now at the 2011 Pisces Full Moon the harvest remains barren. Uranus in Aries the first sign of the zodiac squaring Pluto in Capricorn indicates that we cannot return to the past as it is gone forever. The massive changes and structural transformation underway between now and 2015 are birthing a new cycle. The only way to improve the future is through collaboration and cooperation in the here and now to bring what is out of balance back toward equilibrium.

(1)The ECB’s swap lines are with the Federal Reserve and the central banks of Japan, Switzerland, and the UK.

(2)PIIGS: Portugal, Ireland, Italy, Greece, and Spain.

(3) “How Long Can the ECB Prop Up Europe’s Sick Banks?” by Simon Kennedy and Gavin Finch, Bloomberg Businessweek 8/24/11

(4)”Suddenly, Over There Is Over Here” by Gretchen Morgenson, The New York Times 9/17/11

(5)Geithner also said there was “not a chance” the U.S. would lose its triple-A bond rating. 
Geithner was born with the Moon in Scorpio. Whether his Moon conjoins natal Neptune is uncertain without a birth time.

(6)The monoline insurers (Ambac and MBIA) were principally municipal bond insurers who strayed into insuring structured products based on subprime mortgages.

(7)The Sun and Moon are luminaries but are classified as planets because they are the two primary influences on human behavior.

European Central Bank: June 1, 1998 12:00 AM CEDT Frankfurt
Federal Reserve: December 23, 1913 6:02 PM EST Washington, DC
Ben Bernanke: December 13, 1953 time unknown Augusta, GA
Timothy Geithner: August 18, 1961 time unknown New York City
USA: July 4, 1776 5:10 PM LMT Philadelphia, PA
Greece: July 24, 1974 4:00 AM EET Athens
Europe’s Birthday: May 9, 1950 4:00 PM CET Paris
Treaty on the EU: November 1, 1993 12:00 AM CET Brussels
Euro: January 1, 1999 12:00 AM Frankfurt

WallStreetWeather.net Weekly Forecast: September 12-19, 2011

Summary Of Last Week’s Influences:
Wall Street began the abbreviated holiday week worried about Europe and ended the week worried about Europe. In between the market was bullish about Europe, but it was not enough for the major indices to once again finish the week lower than where they began.

As described in last week’s Forecast, Mercury’s third and final opposition to Neptune Thursday reflected the market’s disappointment that Fed Chairman Bernanke failed to provide a clear signal that additional monetary stimulus is on the way. It was the Fed Chairman’s second speech in a row where he reiterated the process Congress went through before reaching agreement to raise the debt ceiling was not one that the economy could afford to repeat. Bernanke explained this was the reason for S&P’s downgrade of the USA’s long term credit rating.

President Obama’s speech Thursday before a joint session of Congress began 9 minutes late at 7:09 PM EDT. At 7:00 PM, the USA’s progressed Sun in Pisces would have exactly conjoined the chart for the speech’s Ascendant.(1) While still strongly in play at the time the President began speaking, an exact conjunction between the two would have helped to increase the cohesion between what the Administration and the nation believes needs to be done to increase economic expansion and employment.

Mercury the planet of communication in its home sector of the chart representing the labor force opposite Neptune the planetary ruler of the chart indicates there has been a lot of behind the scenes discussions with the opposing political party since Mercury rules the sectors of the chart representing Republicans and “open enemies.” The White House fact sheet notes that House Speaker Boehner and House Majority Leader Cantor recommended the “bridge to work” program that offers the unemployed the opportunity to take temporary employment or perform volunteer work while continuing to receive unemployment benefits. In fact the origins of most of the components in the President’s $447 billion proposal (which charges the “supercommittee” to offset with an equivalent amount of spending cuts) emanate from ideas or legislation sponsored by Republicans such as Supercommittee member Jeb Hensarling (R-TX) and Rep. and GOP presidential candidate Michele Bachmann. (Both co-sponsored legislation on employer/employee payroll tax cuts and business expensing.)

As I have written before, the energy of an opposition is akin to a Full Moon (when the Moon is in the opposite sign of the Sun). Oppositions represent a culmination point as the interaction with other people, situations, and information help us understand and integrate the differences. The expression “opposites attract” is totally true. Although one energy expresses itself quite differently (opposite) from the other, both share similar enough characteristics to provide a “bridge” to cooperation, collaboration and ultimately, integration.

With his natal Sun in Leo and his progressed Sun in Libra, President Obama believes his purpose is to lead the nation as a bridge builder. The Moon in a nation’s chart represents the general public and the nation’s behavioral instincts. The transiting Moon describes the mood of the moment. The USA was born with the Moon in Aquarius - the same sign the Moon was in Thursday evening. President Obama aptly describes the characteristics of the Moon in Aquarius, together with Thursday’s strong Mercury/Neptune/Pisces influence which represents the oneness and unity when he said:

“Yes, we are rugged individualists. Yes, we are strong and self-reliant. And it has been the drive and initiative of our workers and entrepreneurs that has made this economy the engine and the envy of the world.

But there’s always been another thread running throughout our history -- a belief that we’re all connected, and that there are some things we can only do together, as a nation.”


The strong Mercury/Neptune/Pisces influence also reflected the speech lacked concrete details. More important than the details of the plan was President Obama’s presentation of the plan. Americans in trying times seek the security of a leader exuding confidence and the ability to remain poised and calm under pressure, as reflected by the USA’s natal Sun in Moon-ruled Cancer squaring Saturn in Libra.

Thursday evening’s speech showcased President Obama playing out his Solar Return, which occurred after the first Mercury/Neptune opposition. Venus in Virgo conjoining his natal Mars (which conjoins the USA’s natal Neptune in Virgo) represented his passionate call to Congress to “pass this jobs bill right away!” – in a tone reminiscent of President Reagan admonishing Soviet president Mikhail Gorbachev to “tear down this wall!”

Unfortunately only a fraction of the “American Jobs Act” is dedicated to infrastructure projects. Neptune and Pisces like to express their energies through symbolism (such as dreams, myth, and metaphor). Which is why I do not view it as coincidental that 31 minutes before President Obama began speaking, a worker handling a capacitor at a substation in North Gila, Arizona caused a short circuit that shut down a major transmission line in the electrical grid, knocking out power from Arizona to San Diego and Orange County California (as well as Mexico’s Baja peninsula).

Mercury in Virgo opposite Neptune in Aquarius (electricity) describes the vulnerabilities of having a grid so interconnected that a short circuit becomes a major economic problem that suspended the flow of transportation and commerce. It also reflected confusion about what happened as many initially feared the blackout was caused by terrorism. While this belief prevented looting and vandalism, it showcased that shoring up our nation’s infrastructure not only would create jobs and grow the economy, but it would also provide greater protection against terrorism. There is no need for the terrorists of today and tomorrow to crash jetliners into buildings or smuggle in nukes when they could turn off the grid or penetrate our digital financial infrastructure. Imagine if the $3.3 trillion+ already spent fighting the “twin wars” had been spent on protecting America’s vital interests at home!

Mercury is a dualistic energy, so as I wrap up describing the cycle of Mercury opposite Neptune, I want to mention a couple more things relating to this planetary signature.

Mercury opposite Neptune in Aquarius represented news about Medicare providers being charged with billing $295 billion in fraudulent claims as part of the Administration’s “operation HEAT.”

Last week I wrote that the opposition of Mercury and Neptune could increase the “potential for a major sovereign (non-U.S.) or corporate credit downgrade.” There are media reports that Moody’s may cut the credit ratings of the largest French banks – BNP Paribas, SocGen, and Credit Agricole could be downgraded due to their exposure to Greece.

Summary Of This Week’s Influences:
Monday’s Full Moon is called the “Harvest Moon” as it marks the time of the year traditionally connected to reaping the fruits of one’s labor. Each year the season’s harvest is gathered under the light generated by the Pisces Full Moon. What began at the time of the August 28 Virgo New Moon is reaching culmination now.

As the final sign of the zodiac, Pisces describes the conclusion of one a cycle in order for a new cycle to begin again. Pisces is not only the last sign of the zodiac, but is also the last sign in the water element. Water does not always flow in a predictable direction; Pisces energy is not concerned with adhering to boundaries as it is attuned to going with the flow. Like a sponge, Pisces is ready to surrender and absorb whatever comes along.

Pisces motto is “I believe.” Pisces and Neptune rule credit which means “to believe.” Germany’s natal Moon in Pisces conjoins Monday’s Full Moon as Mars in Moon-ruled Cancer conjoins Germany’s Cancer Ascendant at the end of the week. These energies are described in a Bloomberg story appropriately titled “Germany Readies Surrender in Fight to Save Greece.” Mars conjoining Germany’s Ascendant indicates the nation is forced to act rather than react as Greece’s ability to repay its debts under the current arrangements is not credible.

Since German banks hold the largest amount of sovereign debt, they would have to absorb the writedowns unless the government was willing to “ringfence” the banks. Germany's progressed Sun entered Scorpio in late June. Scorpio is ruled by Pluto the planetary energy of transformation. Germany will need to take the lead in steering the Eurozone through its first sovereign default.

Neptune and Pisces promote the spread of contagion which Pluto can elevate into a massive pandemic.(2) Since Pisces is ruled by Neptune and Neptune is in Uranus-ruled Aquarius, this further reinforces the frictional square between Uranus in Aries and Pluto. It remains uncertain whether the full impact and extent of a sovereign default could lead to chaos or freedom to make a fresh start. Pluto appearing stationary in the sky as it prepares to turn stationary direct Friday exacerbates these concerns since Pluto in Capricorn the sign of government describes the enormous mountain of sovereign debt held on Eurozone banks books and spread throughout the world. Debt, bankruptcies, M&A (especially takeovers), taxes/entitlements, insurance, nuclear issues, and power grabs all come under Pluto’s domain. Secrets are more likely to be revealed.

Last week I noted that the Pisces Full Moon conjoins the degree of the September 15, 2008 Pisces Full Moon when Lehman Brothers filed for bankruptcy. Now the chorus of comparisons to Lehman has grown. Three years later the tides have reversed as now it is the European banks that are in trouble.

The Moon enters Aries early Tuesday and conjoins Uranus and squares Pluto in the morning to early afternoon. Aries is ruled by Mars which is in Cancer, the sign ruled by the Moon. Mars has been in Cancer since August 3 and is eager to finish its sojourn on Sunday as bold and brash Aries energy needs to charge ahead, and is uncomfortable I energy of bold and brash Aries is uncomfortable in Cancer’s emotionally expressive world.

First the Sun harmonized with Jupiter in Taurus September 2; now on Wednesday its Mercury’s turn to do so. The market was bearish September 2 due to a weaker than expected employment report and Greece’s finance minister saying Greece would not make its deficit targets as its economy has shrunk more than expected.

Venus enters its home sign Libra at 10:40 PM EDT Wednesday evening until October 9. Financial relationships are in focus, especially leading into the September 27 Libra New Moon when half of the planets will be in Libra. There is a greater desire to collaborate with others now. 

Venus in Libra will oppose Uranus and square Pluto September 17-18 and conjoin Saturn September 29. These energies will continue to generate volatility and concerns about counterparty risk over the extent of sovereign debt held by banks, along with the fear that corporate profits are shrinking. Jupiter in Taurus describes the excess cash being held by banks, corporations, and individuals. Jupiter is wealth and Taurus likes to hold onto what they have, so Jupiter in Taurus is first and foremost about wealth preservation.

The Moon enters Taurus, the other sign ruled by Venus, 3:25 PM Thursday until 4:06 AM Sunday. Fridays are ruled by Venus, and Friday has a “double Venus” quality with the Moon in Taurus and Venus in Libra. Pluto turns direct after being retrograde since April 9. Yields on long term U.S. Treasuries could reverse today due to shifting sentiment that the Fed might not do any further monetary stimulus.

The combination of Venus squaring Pluto, Mars entering Leo at 9:51 PM Sunday until November 7, and Saturn moving into new degree territory on Monday increases the potential for a reversal on Monday the 19th.  This could be related to news of government intervention in Europe over the weekend. These influences can also indicate merger activity (or speculation of such activity) which could make this the first “merger Monday” in a few weeks.

Reminder: The forecast for Monday, September 12 is part of last week’s Forecast as the Weekly Forecast now runs through the following Monday.

Tuesday, September 13, 2011
Reversal from Monday; mostly positive but could weaken into the close.

Wednesday, September 14, 2011
Negative and weakest early before becoming mixed to positive.

Thursday, September 15, 2011
Negative.

Friday, September 16, 2011 (Quadruple Options Expiration)
Improving conditions as the day progresses.

Monday, September 19, 2011
Positive.

(1)The Ascendant (rising sign) is the sign rising on the eastern horizon. Progressions move the natal planets and chart positions forward in time, symbolizing the individual/entity’s evolution.

(2) Speaking of contagions, the film industry is ruled by Pisces and its planetary ruler Neptune.
“Contagion,” a film about how much faster plagues can spread in our interconnected world, topped the weekend box office. (You would think there’s enough troubling real life stuff out there that people would prefer to pay to see something fun, but explaining this contrary behavior would take up a separate post.)

Related Post: 2011 Summer Solstice Forecast

Barack Obama:  August 4, 1961 7:24 PM AHST Honolulu, HI
USA: July 4, 1776 5:10 PM LMT Philadelphia, PA
German Reunification: October 3, 1990 midnight CET Bonn, Germany

WallStreetWeather.net Weekly Forecast: September 5-12, 2011

NOTE: Starting this week, the time period covered in the Weekly Forecast will be Monday to Monday.

Summary Of Last Week’s Influences:
The combination of the Virgo New Moon harmonizing with Pluto as Venus (banks) harmonized with Jupiter (in Venus-ruled Taurus) generated an abundance of optimism in the financial sector as the week began. The Sun represents confidence and Pluto rules mergers and insurance. The rally in financials began overseas on the announcement that a weaker Greek bank would acquire a less weaker bank to create AlphaEuro Bank. The news carried over in U.S. markets which were already jubilant over estimates that insurance payouts from Hurricane Irene would be lower than initially projected and provide insurers with a reason to increase premiums.

The energies of Jupiter in Taurus were particularly pronounced last week as Jupiter turned retrograde Tuesday. The major indices immediately reversed to positive when the FOMC Minutes were released at 2:00 PM Tuesday. The Jupiter energies accounted for the market’s optimism that the Fed will expand its balance sheet with QE3. But as I explained in “Is the Federal Reserve About to Overflow the Bathtub?,” the financial bathtub cannot hold anymore water without overflowing.

The reality is that the Fed is constrained at both ends of the inflation band. With too little inflation and the financial system at its limits in absorbing liquidity, additional liquidity would be a destructive force in the banking system. With too much inflation, additional liquidity would only spur additional inflation. While many people (myself included) would observe that we currently have too much inflation in necessities, overall inflation is still not enough to absorb more liquidity. Unfortunately for Chairman Bernanke, inflation is occurring in commodities rather than in more labor intensive products which would help to expand employment.

When optimism exits the market, Jupiter’s energy generates big moves in the opposite direction. Jupiter represents things at a distance, so events happening abroad had an outsized influence on Wall St. If there’s one thing that freaks Jupiter energy out it is a contraction in global growth. I have written periodically about China’s growth slowing down at a time of increasing social unrest. Although weaker at 50.6, August ISM manufacturing was virtually identical to China’s August PMI released the same day. A reading below 50 represents contraction; S. Korea reported 49.77 and Taiwan 45.2. So for all the analysts and investors in love with the Asian miracle, keep in mind that as the U.S. and Europe contracts, so will Asia. Plus China is in a housing bubble, and we’re all too well aware how that story ends.

The Sun in Virgo and Jupiter in Taurus had their harmonious hookup Friday but a worse than expected employment report described a larger than expected loss. With the Moon (sentiment) in Scorpio the sign ruling all forms of debt, market futures were already negative well before the jobs report over financial matters here and abroad. Greece’s finance minister announced the country won’t be able to meet 2011 deficit reduction targets. (Why this should be a surprise, I don’t know.)

Regulators requested that Bank of America (BAC) outline measures the bank could take if its financial condition worsened. Right before Friday’s close it was official that the FHFA filed a lawsuit (Jupiter) against 17 banks (including foreign ones) over mortgage securities they sold to Fannie (FNM) and Freddie (FRE) that soured.

While there is no getting around the fact that Friday’s jobs report was disappointing (especially with the downward revisions for June and July), media reports that no jobs were created is a bit misleading. A strike by Verizon (VZ) workers which has since been settled reduced the payroll number by 45,000. 17,000 private sector jobs were added in August while 17,000 government jobs were cut. Meanwhile the ADP Employment report which only counts private sector jobs, reported an increase of 91,000 jobs in August with 58,000 of those jobs created by small business.

The fractious debt debate closely followed by S&P’s downgrade of the U.S. credit rating as the USA experienced its Saturn return obviously did not create a confident atmosphere to in employers to hire. The unemployment rate during the USA’s previous Saturn return in October 1981 was 7.9% but rose to 10%+ between September 1982 and June 1983.

There are two solutions to the unemployment problem and the structural problems facing the nation that cannot be solved through monetary policy but only through fiscal policy:

1. Major infrastructure spending to create jobs AND bring the nation into the 21st century.

2. Radical tax reform that eliminates ALL deductions and credits across the board to lower tax rates while generating higher revenue. This would also help to reduce lobbying.

Summary Of This Week’s Influences:
As mentioned in the Virgo New Moon post, global issues are paramount with the September 4 First Quarter Moon in Jupiter-ruled Sagittarius. This is the “crisis in action” phase of the Moon’s monthly cycle which culminates at the September 12 Full Moon.

Mars in Cancer describes hot and dry conditions that create drought (since Cancer rules water). It was so blantantly obvious that I missed the forest for the trees in responding to a comment left following this post. Mars in Cancer in the sector ruling real estate in the chart for the Virgo New Moon would elevate the potential for fires that destroy homes and properties. These conditions could be alleviated between now and the September 12 Full Moon as Neptune in the sector representing the weather in the chart for Texas could bring rain either Thursday or over the weekend. If it does rain, it is likely to quickly bring flooding. Once again there is severe storm and earthquake potential for the East coast, especially the Northeast and New England.

The Sun represents self-identity and most people’s identity is tied to their work. The Sun is in Virgo, the sign ruling the labor force during the first Monday every September when the U.S. celebrates Labor Day. U.S. financial markets are closed on what is considered to be the final weekend of the summer. (Summer officially ends September 23 when the Sun enters Libra.)

It’s back to business on Tuesday with the Moon in Capricorn until 4:35 PM EDT Wednesday. Capricorn rules government and corporations. Which is why despite protestations to the contrary, neither can survive without the other. Market sentiment tends to steer more toward conservative investments (such as the “flight to safety” in U.S. Treasuries) unless there’s speculation or news about government policy that the market views as favorable to increase risk tolerance. Tuesday is unlikely to be one of those days, as it has a negative influence regardless of what is happening here or in Europe. (Although there have been situations in the past where a sharp downturn has ended the day mixed.)

The Moon in Aquarius Thursday and Friday can bring unexpected market moves. Mercury opposes Neptune for the third and final time Thursday due to Mercury’s retrograde cycle last month. This influence previously occurred on July 29 and August 8. Neptune rules oil which also sold off on those dates. It can be difficult to discern what’s really going on in an atmosphere clouded in confusion, rumors, and false or misleading information. Extra effort is required to avoid being misunderstood by others. There is potential for a major sovereign (non-U.S.) or corporate credit downgrade.

With Mercury in Leo opposite Neptune in Aquarius, the market now is particularly influenced by what leaders have to say. Mercury is a dualistic energy, reflecting that two leaders are scheduled to speak Thursday: Fed Chairman Bernanke at 1:00 PM and President Obama at 7:00 PM.

Mercury rules the labor force. Together with the Sun conjoining Venus in Virgo, President Obama will address a joint session of Congress to outline his plans to boost job growth. Originally the President was going to speak Wednesday evening at 8:00 PM, but was advised by House Speaker John Boehner to reschedule. (Hopefully future scheduling negotiations between the White House and Congress will return to taking place behind the scenes.)

President Obama might speak of a nation wounded and in need of healing through increasing employment growth. The President’s big bold plans will largely rely on infrastructure spending which will require an overhaul of the tax code to generate increased revenue to help pay for it. Numerous changes would be required in order to get the bill to pass Congress.

Mercury re-enters Virgo early Friday until September 25 after Mercury was originally in Virgo July 28 to August 8. Mercury is “at home” in Virgo, ready to give the calculator a workout to see if the numbers add up.

G7 finance ministers and central bankers meet in France Friday and Saturday to discuss plans to avert a financial crisis in Europe. The Moon entering Neptune-ruled Pisces at 3:26 PM EDT Saturday over the weekend leading up to the September 12 Pisces Full Moon (5:27 AM EDT) indicates that Monday’s market moves could either be euphoric or the financial contagion has spread. While Mercury in Virgo harmonizing with Pluto in Capricorn can indicate an announcement by the G7 to take additional steps to provide loan assistance, even if well received would likely only have a temporary effect. This influence can also bring merger announcements.

The Full Moon indicates events and situations have reached a culmination point. Occurring at 19+ degrees Pisces the sign of endings, this Full Moon conjoins the degree of the September 15, 2008 Full Moon when Wall St. erupted into a full blown financial crisis after Lehman Brothers filed for bankruptcy. Pluto issues such as debt, bankruptcy, taxes, and is emphasized now as Pluto prepares to turn direct September 16.

The Full Moon squares the USA’s natal Mars in Gemini and opposes the USA Neptune in Virgo. Besides financial crises, the Full Moon impacting the USA Mars/Neptune highlights U.S. military action that tends to relate to oil or drugs in some capacity. There's a lot of behind the scenes activity taking place that is now being reported.

Uranus in Aries which has been retrograde since July 9, squares the USA’s natal Venus in Cancer for the second time. This influence can bring unexpected developments or surprises affecting the USA’s financial system and home values. Note that Venus does not just represent financial values but also nonmaterial values. (In this context referring to the nation’s values.)

Although Uranus in Aries will make its third and final exact square to the USA’s natal Venus February 28, 2012, the influence will not begin to wane until after the end of 2012. But since the USA’s natal Venus conjoins Jupiter (which conjoins the USA’s natal Sun in Cancer), events will occur between now and 2015 that radically change and transform the nation’s financial system, values, ideology, and identity.

The first exact transit occurred on May 9, days after the major indices reached multiyear highs. S&P downgraded Greece to B-, home values in the first quarter of 2011 experienced their biggest decline since the end of 2008, and House Speaker John Boehner addressed the Economic Club of NY. The Speaker’s remark that cuts to the federal deficit should be greater than the amount Congress approves to raise the debt ceiling unsettled some in the business community then. Now as this transit repeats, Speaker Boehner is scheduled to outline the GOP’s plans for job creation at the Economic Club (September 15 at 1:00 PM EDT).

It’s worth repeating my premise that the closer we get to the September 23 Autumnal Equinox and the five planet Libra lineup surrounding the September 27 New Moon, the greater the potential for worldwide events to unravel that once again create fear of counterparty risk.

Even though Mercury in Virgo is moving forward, it might seem like déjà vu all over again as the evidence builds up that the world is undergoing a global contraction. This would indicate the stock market is overpriced.

Tuesday, September 6, 2011
Negative, but likely to improve later in the day.

Wednesday, September 7, 2011
Positive and strongest early before becoming choppy/mixed to negative; improves to close moderately negative to mixed.

Thursday, September 8, 2011
Negative.

Friday, September 9, 2011
Choppy/mixed to positive; ends mixed.

Monday, September 12, 2011
Large moves in either direction; negative.

Related Post:  2011 Summer Solstice