Will Bernanke Ignore Rising Shoe Prices Too?

Forget Iron Man and Superman. A new super hero has emerged; spawn of the creature from Jekyll Island –Fed Chairman Ben Bernanke!

How is the Fed Chairman a super hero? On the basis that he doesn’t need to eat or drive, and inflation is able to disappear in his presence, I’d say he’s got strong qualifications. The final test for our potential superhero will be if he can survive without shoes.

The Wall Street Journal “Pain at the Other Pump: Shoe Prices Rise” reports that America’s three largest footwear makers – Brown Shoe Co. (BWS), Collective Brands (PSS), and Jones Apparel Group (JNY), are increasing shoe prices between 5-15% beginning this fall. The companies cite a weak US dollar and higher costs in China for the price increases.
We understand about the weak dollar. After all, Ben’s been busy since last August with the rate cuts. As Papa Bush would say, “wouldn’t be prudent” not to help the banks and US multinational corporations.

The China part is another story. We were told if everything was made in China we would save, save, save. Greed, er globalization is good. China makes 85% of the shoes sold in the US, as well as most of the handbags, belts and other leather accessories (which will also increase). Ben doesn’t need a handbag, so that’s not an issue.

Shoes fall under the planetary energy of Neptune and the sign Pisces which rule the feet. Uranus, the planetary energy relating to sharp price movements, is currently in Pisces. This fall, Uranus in Pisces will begin forming a series of oppositions to Saturn in Virgo until mid 2010. Prices on all kinds of goods could gyrate wildly. In the case of shoes, there could be disruptions along the supply chain.

Jones Apparel CEO Wes Card must be a Bernanke groupie. The maker of Nine West brand shoes told the Journal that despite price increases, consumers will see good value, not inflation. “The gap between a Nine West shoe and a Jimmy Choo has gotten wider,” Card said. If it wasn’t for “Sex and the City,” only celebrities and fashionistas would know what a Jimmy Choo is. Pictured above is a new Nine West pump style shoe that retails for $89.00. A similar style Jimmy Choo shoe retails for about $710.00. Didn’t Mr. Card learn that you must compare apples to apples and not apples to caviar?

Another Fed fan is Mark Hood, the CFO of Brown Shoe Co. which owns the Famous Footwear chain and brands such as Naturalizer, Life Stride and Buster Brown. Hood says that they would ease feet and wallets “by adding features such as breathable linings and cushioned in-steps.” Rationalizing higher prices because of added features is known as hedonic adjustment – a fancy way of discounting inflation. The Bureau of Labor Statistics will proclaim that consumers got more for their money. Therefore, the manufacturer’s higher price is not inflationary.

People need to buy shoes to protect their feet, but they don’t need to buy as many. When it comes to the more trendy high heeled shoes, women need to calculate the cost of a podiatrist visit into their shoe budget.

Bernanke told the banks to “raise capital or be acquired.” Now he’s adjusted the message that shoe companies must “raise prices or be acquired.” After all, superheroes can always go barefoot.

Related Post: “March CPI: Desperate Housewives Want to Know Where the Government Shops”

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The New York Times Tours the Human Body Under a Virgo Moon

Today’s online New York Times has an expanded health section called “A Guided Tour of Your Body”. While the NYT (as well as The Wall Street Journal) feature health articles every Tuesday, it is particularly synchronistic that they chose today to feature all the details about the human body.

Why today? Because the Moon (our emotional barometer) is in Virgo, the sign of health matters. When the Moon is in this sign about every 28.5 days for about 2.5 days, we tend to be more aware of our body. There’s a greater interest in adopting healthier lifestyle habits.

Virgo wants all the details, and the NYT section has lots of articles and diagrams to satisfy this need. However, people who tend to be excessive worriers might want to visit the NYT health section on May 15 when the Moon will no longer be in Virgo.

Related Post: “Time to Clean Up: Saturn in Virgo”

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Oil and Election Year Politics

As oil continues to hit record levels, politicians are rushing to come up with gimmicky quick fixes in an effort to pander to voters. Today’s Wall Street Journal highlights proposals being considered by Congress.

Put OPEC in the Hot Seat: The Senate Judiciary Committee will hold a hearing on high gas prices later this month and have requested that OPEC’s secretary-general, Abdalla Salem El-Badri testify. This will be nothing more than a dog and pony show even without the OPEC minister. As I have previously written about oil supplies and Saudi oil production, it is not in OPEC’s best interest to have oil prices at these levels. If the cartel could increase production, they would. (The Journal reports that Senators are promoting legislation that would allow OPEC members to be sued under antitrust laws. Litigation to get oil – it’s the American way!)

Allow drilling in parts of the US currently off-limits: President Bush and several GOP Senators continue to support an idea that has passed its expiration date. We should have started drilling all over the US and off the coast years ago with the hope that just the thought of it alone would have created a groundswell of support for Americans to conserve energy and demand viable alternative sources. It’s the whole NIMBY argument; who cares about the environment of other countries – as long as we can’t see it.

“Guns for Oil”: That’s the name of today’s Wall Street Journal editorial pointing out the hypocrisy of Sens. Schumer, Dorgan, Sanders, and Casey’s participation in a letter to President Bush demanding the Administration tell OPEC nations to forget about getting more US weapons unless we get more oil. The Journal rightly points out that these are the same Senators who voted against US drilling and have made no effort to get people to conserve. I give the Senator from New York (Schumer) the hypocrisy bonus prize. Thousands of his constituents lost their lives and were injured in the 9/11 attacks by terrorists who were mostly from Saudi Arabia. To sell weaponry to dictatorships such as Saudi Arabia is pathetic enough, but resorting to bribery shows how out of control Washington has become.

Reinstate the Windfall Profits Tax on Oil Companies: Senator Clinton is the most vocal proponent of reinstating the tax initiated in the Carter Administration to pay for a Summer suspension of the gas tax. (The Windfall Profits Tax was repealed during the Reagan Administration.) A 2006 CBO analysis said the tax brought in $80 billion vs. a projected $393 billion, and concluded it “made the US more dependent on foreign oil.”

Halt Buildup of the Strategic Petroleum Reserve: According to the Journal, the Reserve currently has 701.3 million barrels, with a capacity for 727 million barrels. The White House would like to add 70,000 barrels a day to ultimately have a stockpile of 1.5 billion barrels. The EIA estimates the cost to stockpile works out to be about 4-5 cents a gallon; some members of Congress estimate it adds up to 24 cents a gallon to fuel prices. Senator McCain and at least a dozen other Senators are in favor of halting the buildup, but this warmonger Administration must believe a big supply disruption is likely to occur in the near future.

Raise Oil Trading Margin Requirements: Collateral requirements for oil trading are determined by the different exchanges (some require as little as 5% of a contract’s value). Senator Dorgan has proposed raising the margin requirement by at least 25% in an effort to lower some of the speculation priced into the cost of crude. Fine, but the Federal Reserve raising interest rates would have a greater impact on reducing speculation’s effect on crude prices.

As the Journal points out, “Making Americans consume less is an idea largely missing from the debate.” Politicians saw how far President Carter got with that one Saturn cycle ago and are afraid to speak the truth and make the difficult decisions. There is a good chance that the American people are more ready to conserve energy now than the politicians believe.

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Sleeping Pills That Don’t Let You Sleep

The Health Journal column in today’s Wall Street Journal discusses the dangers of taking sleeping pills, and the rise in somnambulism that is more likely to occur taking nonbenzodiazepines (NBZs). Ambien is the leading brand-name NBZ; others are Lunesta and Sonata.

Last year the FDA required that “sedative-hypnotic” drugs carry strong warnings, following reported cases of people sleep walking, eating, driving, and doing chores. The Journal reports a WHO study showing people have experienced these effects in 24 countries. In that study, Halcion (banned in some countries such as the UK), caused the highest instance of sleep actions amongst an older class of sleeping drugs known as benzodiazepines (BZs). Ambien showed the highest sleep actions of the NBZs. Despite the side effects, the Journal cites IMS Health statistics showing US sleep aid prescriptions grew 10% last year, partly attributed to generic Ambien.

From a planetary perspective, drugs in general come under the domain of Neptune. This planetary energy relates to the art of illusion and the desire to escape. Neptune was discovered* at the time anesthesia was first used to help a patient escape the pain of having his tooth extracted. Neptune and its sign Pisces rule the unconscious, the world we escape to each night for a few hours of necessary respite and rejuvenation.

Neptune also rules addictions: escape mechanisms we think we need to cope with daily living. Even after any medical condition or other medication/supplement interaction has been ruled out as being the cause of trouble sleeping, popping a pill is viewed as superior to exploring the cause of sleep difficulties. The transit of Uranus in Pisces since 2003 has resulted in the rise of erratic behavior reported from sleeping pills. A series of oppositions between Uranus and Saturn in Virgo later this year through mid 2010 should bring greater government (Saturn) restrictions or bans on healthcare (Virgo) that has many side effects but little medical benefit. The US in particular will experience radical change in all aspects of healthcare.

Taking a sleeping pill becomes an addictive cycle of fear as the Journal describes people taking a sleeping pill too far ahead of going to bed so they don’t spend a single second lying awake. The overuse of medication in today’s society is one of my pet peeves. I’m not a medical professional, but I offer these tips to people having trouble sleeping in the hope that they never start these pills, or will discuss stopping the sleeping pill habit with their doctor.

Make your bedroom a sleep sanctuary: If you don’t find the colors and contents of your bedroom to be relaxing, how do you expect to get a good night’s sleep? Eliminate excess clutter, and remove the TV, computer, exercise equipment – anything that conveys the subliminal message of activity. If you live in a one room apartment, drape covers over these items before bedtime. Make sure the room is dark enough for sleeping.

Preparing for sleep: Vigorous exercise should be done several hours before sleeping, but being outdoors and taking a walk in the evening is usually conducive for sleep. Eating and drinking caffeinated beverages too close to bedtime should be avoided. Establish a brief transition period before bedtime to create the setting for sleeping. (Especially important if you sleep in your living area.) Tune out the world physically and mentally. Tell yourself that anything bothering you can be continued tomorrow morning. Playing soothing music or sounds on a stereo with a sleep timer might be helpful.

Keep a schedule/observe yourself: It’s important to awaken and go to sleep around the same time each day (even on weekends). Write down each time you experience trouble sleeping what you did, ate, and how you felt that day. Difficulties could also coincide with the Moon’s phases and other cycles.

Change your mindset: Not every person needs eight hours sleep – some need more, some need less. Know what works best for you rather than media touted statistics from some sleep organization that’s probably pharma financed. Sleep requirements change during different phases of our life.

I have experienced periods where I’m wide awake after a few hours of sleep. Rather than be upset about it, I’ve used these times to read, meditate, or sit in the dark with the shade up staring at the stars. The quiet hours before dawn have a special energy that is inspiring – far more appealing than the side effects and expense of pills.

*Neptune discovered: September 23, 1846 11:55 CET Berlin, Germany.

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“The Housing Crisis Is Over” – NOT!

Today’s Wall Street Journal features an op-ed by Cyril Moulle-Berteaux (“The Housing Crisis is Over”). The piece is a perfect example of what looks good on paper does not necessarily reflect reality.

Since home sales peaked in July 2005 (the end of Saturn’s transit in the real estate sign Cancer), new home sales have declined 63%. The author’s thinking is that since house prices have fallen 10-15% and mortgage rates are down 70 basis points, homes are as affordable now as during the 1990s. His final argument is that despite falling prices and high inventories, home sales will pick up “because they always do.”

Moulle-Berteaux disagrees with analysts who believe house prices must fall at least 30% further to be back in line to their historical inflation-adjusted average. His reasoning is that most buyers take out a mortgage to purchase real estate, and thus are only concerned with “how much of one’s income is required to be able to make the mortgage payments.” On that basis, today’s mortgage rates are a bargain compared to the high interest rates of the past.

There are so many factors the author left out of his analysis. Despite the decline, home prices are still at record levels historically. More importantly, all the costs associated with owning a home have skyrocketed: taxes, insurance, association fees, repair costs, and utilities. The 5.70% 30 year fixed mortgage cited seems like a low rate to purchase a home, but when all the factors are taken into consideration, how many buyers can make a 20% down payment as required under current lending standards? Additionally, lenders are blacklisting condo mortgages; mortgages issued are becoming “covenant heavy” (as opposed to the LBOs “covenant lite”).

The government and the real estate industrial complex do everything possible to encourage people to buy as much house as they can qualify for. As more and more homeowners are waking up to the folly of that notion, the smart buyer realizes that buying a home for the lowest price possible is the most important consideration. Always buy well below what the calculations determine you can “afford”. You never know what market factors will do, or how your circumstances might change. Carrying costs very rarely decline. As far as mortgage rates are concerned, it is better to have higher mortgage rates and lower housing prices than lower mortgage rates and higher housing prices. Besides benefiting the cash buyer, a high rate is a great motivator to pay off the loan, or refinance as rates decline. Just like buying a stock, it’s the price you pay that determines the profit or loss.

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Democrats: Party On!

Today’s Financial Times has an interview with Democratic Party chairman Howard Dean who says “the party’s superdelegates have every right to overturn the popular vote and choose the candidate they believe would be best equipped to defeat John McCain in a general election.” Dean then backs off and says that would be “unlikely”, but goes on to say the Democratic nominee really needs to be decided by the end of June because it would take at least two months for the supporters of the losing candidate to get over their ‘grieving’ and unite behind the winner before the convention begins on August 25. In the interview, Dean says Speaker Pelosi and Senate Majority Leader Reid agreed with him on the end of June deadline.

I have never enjoyed political party politics. A registered Republican until 2003, I switched to Independent to accurately reflect my political views. But that wouldn’t give me a vote in the state’s primary election, so I switched to Democrat.

And it turns out (so far anyway), my primary vote didn’t count in the Democratic Party’s mind. This is the same party who wailed in 2000 that their votes didn’t count when Al Gore won the popular vote and the Supreme Court determined the election in favor of George Bush. Does the Democratic Party want to continue to show their hypocrisy by not allowing every primary voter to have their say? Or is the message the party stalwarts know what’s best for us?

Beyond the voters’ voice, what is wrong with the candidates continuing right up to the convention? The party couldn’t buy this much media publicity! (Speaking of the media, the cable news networks haven’t had this much fun since OJ.)

Spare me the party unity; it’s all about party politics. If the Democratic Party is truly committed to the belief that every vote counts, it will let the popular vote select the candidate. And that includes all those votes in Florida and Michigan. Why should the voters be silenced in these states just because their state leaders didn’t kowtow to the party Pooh-Bahs?

As far as Dean’s “time of mourning”, he is so entrenched in party politics that he has lost track of how politically far apart Senators Clinton and Obama are from Senator McCain. Whether the loser is Clinton or Obama, their supporters will not need to think for one second about whether to vote for the Democratic nominee or Senator McCain on November 4.

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Our Strong Dollar Policy

One could speculate that President Bush, Treasury Secretary Paulson, and Federal Reserve Chairman Bernanke are using affirmations and mind programming to affect the movement of the US dollar. Perhaps they read or watched The Secret together and decided if they adopted the phrase strong dollar policy as their affirmation, it would become reality.

It’s obvious that the trio need a crash course in “Metaphysics 101”. In order to achieve the change you desire, you have to be 100% confident it will occur, and you have to take the appropriate actions to help manifest it.

Yet the more they repeat the strong dollar policy mantra, the lower the dollar drops. The US has “de-coupled” from the rest of the world because we are not taking action to tame inflation. This is why the Euro climbed over $1.60 yesterday. The oil exporting countries are exchanging some of their dollar reserves to buy Euros. The weak dollar increases the cost of commodities prices, creating a global food crisis and record oil prices.

On the surface their manifestation techniques appear to have failed. But maybe we are the ones who are misinterpreting what the Administration’s true economic policy is. A weak dollar boosts exports, helping to lower our huge trade deficit. More importantly, a weak dollar boosts the profits of US multinational corporations when they translate those Euros back into dollars. Corporate earnings appear stronger than they actually are, keeping the stock market indices artificially elevated. This way they can say “recession is possible” with a semi-straight face.

Just as the banks are the only ones benefiting from the Fed’s low interest rates, only the largest multinationals benefit from a debased dollar.

Related Post: “Recession: The Truth Is Out There”

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The Energies of Earth Day

While much has changed since Earth Day was founded, unfortunately much has remained the same. The US is once again engaged in war, people still drive gas guzzling vehicles, and waste far too much of the Earth’s resources.

Earth Day was born out of the 1960s planetary alignment of Uranus (awakening/revolutionary change) and Pluto (toxic conditions/transformation) in Virgo, an earth sign that relates to health and daily living. Unless a major effort was begun quickly to begin to clean up the planet, it would eventually become impossible for humans and most species to survive.

Before there was Al Gore, there was Senator Gaylord Nelson, who had the idea to bring groups of people together to form a nationwide “environmental teach-in” to raise awareness and take action to clean up environmental pollution. Senator Nelson was born with his Sun (self-identity) and Mercury (communication) conjoined in Gemini, the sign of learning. Gemini and its planetary ruler Mercury, represent the local environment. With most of his birth planets in the air and water elements, Senator Nelson was concerned about pollution affecting the air we breathe (Gemini rules the lungs), and the water we drink. With his Mars in Virgo – the only earth element in his chart – Senator Nelson activated a movement that by cleaning up the Earth we improve the quality of our lives.

The first “teach-in” that became Earth Day was established on April 22, 1970. Many localities were celebrating Arbor Day on April 22 which is the birthday of its founder, Julius Sterling Morton. On April 22 each year the Sun (our energy and life force), has just entered Taurus, the first earth sign. Ruled by Venus, Taurus represents the beauty of the Earth in its full-flowered glory of Spring.

During the first Earth Day in 1970, Saturn conjoined the Sun in Taurus. This reflected the serious need for government intervention (Saturn) to protect the environment. Industries were freely polluting the ground, the air and dumping large amounts of toxic waste (Jupiter in Scorpio) into the water. By mid 1969, the Cuyahoga River in Ohio was so toxic from various pollutants that it caught fire. The EPA was established later that year, and over the years other Acts were passed by Congress to clean up and protect various facets of the environment.

In 1990, Earth Day became an international environmental event. Despite this, the years from then to now reflect a retreat backwards. Ask a person if they care about conservation and protecting the environment, and they’ll say “yes”. Ask them to outline what sacrifices they’re willing to make and they’ll begin to stammer and depart in their SUV back to their McMansion. Successive administrations and Congress have lost their enthusiasm as well. For many politicians, Earth Day has become a photo op. You know there’s a problem when my seven year old midsize car gets better gas mileage than an equal sized 2008 model. It’s okay if China and other “emerging markets” pollute so long as we get cheap goods. (Think of the toxic toys and medications as a form of karmic payback.) The wealthy can continue to indulge and use carbon offsets to alleviate their guilt.

Denis Hayes, the Harvard graduate student Senator Nelson asked to organize the first Earth Day, said in a recent interview: “We need to mobilize people to view environmental issues as being in their best interests. But with the economy and the war, it’s hard to get people’s attention.” The planetary energies now and into the future show that it is those very issues that will force people back into conservation and caring for our planet.

Earth Day 2008 features a grand earth trine that looks just like the peace symbol of the Sun in Taurus to Saturn in Virgo and Pluto in Capricorn. This reflects a “back to basics” approach to the environment born out of economic necessity. The public can no longer afford to waste energy and resources as they’ve become too expensive. Venus in Aries shows that change must start with each individual in their personal life. An alignment between Venus in Aries to Mars in Cancer and Jupiter in Capricorn looks like a T (for tension) in the chart. With these planets in action-oriented (cardinal) signs, it shows that initiatives must begin in the home. By consuming less processed food and drink, we cleanse our bodies and the planet of harmful toxins. Positive changes will have a bigger impact than people realize, and corporations and government will have to adapt. The federal deficit has exploded through waging war to acquire more fossil fuel, when the money could have been spent on new and cleaner sources of energy and infrastructures that support more efficient energy usage.

The space program of the 1960s served as a catalyst to protect the planet when the world saw the first pictures of Earth from space. We all share one home, and if it is destroyed it cannot be rebuilt.

Sen. Gaylord Nelson: June 4, 1916 in Clear Lake, Wisconsin. Died July 3, 2005.
Julius Sterling Morton: April 22, 1832 Adams, New York. Died April 27, 1902 in Lake Forest, Illinois. (NOTE: In 1970, President Nixon declared Arbor Day the last Friday in April.)

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Merck’s Ghost Story

Once again the pharmaceutical industry has demonstrated it has more in common with Hollywood than healthcare.

First Pfizer (PFE) used a stunt double in their now discontinued Lipitor commercials featuring Dr. Robert Jarvik. Now Merck (MRK) has taken a cue from celebrities who employ ghostwriters to author their books.

Two articles appearing in today’s issue of JAMA (Journal of the American Medical Association) show Merck’s deceptive practices concerning its anti-inflammatory drug Vioxx that it pulled off the market in 2004. Merck faces a pending legal settlement of $4.85 billion to compensate 47,000 plaintiffs involved in the class action lawsuit.

It was through the plaintiffs’ lawyers combing through piles of documentation that they discovered instances where Merck’s consultants or employees in their marketing department would write studies showing Vioxx in a favorable light, and then recruit academic researchers to attach their name to it. The first JAMA article describes Merck’s ghostwriting concerning Rofecoxib (Vioxx). Reading the article’s introduction shows that Merck is not the first to ghostwrite research papers. In one instance, a draft of a Vioxx study Merck had Scientific Therapeutics Information (described as a specialist in the development of scientific literature), prepare a manuscript that was awaiting the name of a well known researcher to “author” it. Merck compensated researchers with “honoraria” for agreeing to serve as authors. These payments ranged from $750 to $2500. Merck paid Health Science Communications, a health marketing communications company, $23,841.00 to provide a 20-page review manuscript for a cardiology conference. Merck also contracted the company to prepare review manuscripts for nephrology and primary care audiences.

The second JAMA article describes how Merck misrepresented clinical trial numbers reported to the FDA. Merck wanted to promote Vioxx for use in slowing the progression of Alzheimer’s disease. In fact, the results of two Merck-sponsored trials showed that Alzheimer’s patients taking Vioxx were three times more likely to die vs. patients on placebos. Studies showing Vioxx causing increased deaths from heart attack and stroke prompted Merck to pull Vioxx off the market.

Dr. Catherine DeAngelis, JAMA’s Editor-in-Chief, outlines in her editorial steps that medical publications need to take to ensure all the authors involved in medical studies are disclosed, their contributions to the study, and any compensation received.

As time goes on, we are witnessing more and more of these so-called “lifestyle” drugs, medications taken for an issue that may or may not ever occur, as a “preventative.” Whether it’s hormone replacement therapy, statins, restless leg, attention deficit disorder, purple pills, etc., one thing has become crystal clear. The longer a person takes one of these types of drugs, the greater the chance that medication will cause adverse side effects - sometimes creating the very disease the drug was supposed to help prevent.

Related Post: “Merck & Schering-Plough: More Nails in Vytorin’s Coffin”

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Recession: The Truth Is Out There

The evidence exists, but it is covered up and denied. Every time it appears that the government is about to admit it, officials back away. The most they will admit to is it’s “likely”, “possible”, “probably,” “we don’t have enough evidence at this time”, etc.

The truth is the government treats recession and UFOs/extraterrestrials in the same manner. They know we’re in a recession, and they know that we are visited by beings from other worlds. The government is afraid if they admit to these things, people will panic - especially in an election year.

The real truth is it is the government who is living in an illusion. They mistakenly believe the American people cannot handle the truth, that soothing words by the President and government agency chiefs will convince people that the government has everything under control. They reason their persuasive abilities will counter the physical evidence seen at the grocery store, the gas station, and the crop circles of a different kind, signs showing “Reduced” and “Pending Foreclosure.”

Yes, the American people are smarter than the leaders they elect. They don’t need to wait for the high priests at the National Bureau of Economic Research to tell them after the fact that the US economy is in a recession with eerie parallels to the 1970s. And while most of the public does not believe that every UFO photograph, crop circle, or alien encounter is true, they know it is arrogant to assume that Earth contains the only vestige of intelligent life in this vast universe.

NOTE: “The Truth Is Out There” is the by-line of the television series The X-Files.

Related Post: “Bernanke Rejects Role in ‘That ‘70s Show’”

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Using Star Language to Connect AT&T’s Call to a Hollywood/Silicon Valley Venture

It’s always amusing when mainstream journalists use planetary energies to describe things. Here’s the opening paragraph from an article in today’s New York Times on “Hollywood, Silicon Valley and AT&T? It’s a Deal” by Laura M. Holson:

“Hollywood and Silicon Valley have something of a Mars/Venus problem: the two sides are talking but they don’t speak each other’s language. A new venture involving a phone company may just add Pluto into the mix.”

Hollywood talent agency William Morris is expected to announce today it is partnering with Silicon Valley venture capital firms Accel Partners and Venrock, to invest in primarily southern California based digital media start-up companies. AT&T (T) is signed up as a limited partner to tap into the ever growing audience viewing entertainment and visiting social networks on their mobile phones.

Let’s examine the astrology (a Greek word that means “star language”) Ms. Holson has used. Mars and Venus as a catchphrase for anyone who has difficulty communicating with anyone else became popular after John Gray’s bestseller, “Men Are from Mars, and Women Are from Venus.” It is correct that when viewing the horoscopes of two people for compatibility, you would look at their Mars (energy) and Venus (attraction). Language (as Holson writes), is ruled by Mercury, the planet of communication. Two people can be attracted to each other, but if their communication styles are incompatible, a lasting relationship becomes more challenging. Pluto is about power and influence, as well as hidden agendas. There’s no question AT&T fits the bill. Holson’s article states that AT&T’s real interest lies in its desire “to invest in technologies that will make it easier to run ads on cellphones, as well as to nurture social networks like Facebook and MySpace.”

Astrologically, Hollywood and the film and music industries are ruled by Neptune, the planet of fantasy, glamour, and illusion. Venus also relates to Hollywood as most of the “beautiful people” reside here. Venus rules beauty and money, and you can never have enough of either in Hollywood. Silicon Valley is ruled by Uranus, the planetary ruler of electronics and technological innovation. Since Uranus entered Neptune-ruled Pisces in 2003, special effects work by Silicon Valley companies for Hollywood movies has vastly increased. Companies such as Apple (AAPL) have been on the forefront of creating new entertainment devices such as the iPod and the iPhone. Neptune has resided in Uranus-ruled Aquarius since 1998, ushering in the rise of the internet as a vast social and entertainment forum where people can stay in touch with their friends and connect with others who share their interests. Because Uranus and Neptune are residing in each other’s signs, it is only natural that Hollywood and Silicon Valley would see the synergy. Mercury rules all forms of communications as well as the devices that transmit them. Creating entertainment for internet and mobile phones (“the new media”), is a combination of Mercury, Uranus, and Neptune energies, with old line behemoths such as AT&T seeking ultimate domination and control of it (Pluto).

This week’s planetary energies are reflective of this deal. On Wednesday and Thursday, the Moon (emotional barometer) will be in Aquarius and make alignments with Mercury, Venus, and Neptune. Venus will conjoin Neptune on Thursday, and the Sun in Pisces will hookup with Jupiter, the planet of optimism and expansion. To top it off, Friday’s New Moon in Pisces will conjoin Uranus. In essence, expect to see business deals involving large companies financing new technologies involved in the business of beauty, glamour, and illusion.

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America Saves Week: February 24 – March 2

While paging through the local paper yesterday, I spotted a bank ad touting a 48 month Certificate of Deposit for 3.5% APY. The barely legible print at the bottom of the ad said that the CD requires a $10,000 minimum of new money to the bank. Wow, I bet people will be standing in line for the bank to open this morning.

What was featured much more prominently in the ad is that this bank is a proud sponsor of “America Saves Week.” According to its website, “America Saves is a national campaign involving more than 1,000 non-profit, government and corporate groups that encourages individuals and families to save and build personal wealth.” The organization’s National Advisory Committee consists of government agencies that do their best to discourage and erode savings: the Federal Reserve Board, Internal Revenue Service (IRS), and the Department of the Treasury.

The IRS and the Treasury are directed to carry out their duties through acts of Congress. It is the tax code that has turned the U.S. into a primarily consumer driven economy that encourages borrowing and spending rather than saving. Interest income is taxed because the government has brainwashed the public that only “the rich” have interest income. Tell that to millions of senior citizens and every other person who wants to save. (The least the government could do would be to only tax interest income on individuals whose income is at least $100,000 a year.) Instead of spending money on sorely needed infrastructure projects that create jobs and help state and local economies, the government’s solution was to pass a $168 billion stimulus package, encouraging the public to spend their forthcoming rebate check on consumer discretionary items.

The Federal Reserve’s monetary policy has done everything possible to discourage saving. First it was through keeping interest rates too low for too long. Besides causing the housing and credit bubbles, it encouraged people and institutions such as insurance companies and pension funds, to invest in risky securities to obtain a higher yield. The dual mandate enacted by Congress in 1978 has done nothing to increase the Fed’s focus on savings. The only group helped by the FOMC’s accommodative policy is the banks; low rates widen the yield spread between the interest banks pay to savers and the rate banks charge borrowers. As financial companies have tightened their lending standards, borrowers are not benefiting from lower interest rates.

The FOMC has chosen to ignore ever rising inflation that not only makes saving harder, but further erodes it. When people have to pay so much for the necessities of daily living (including taxes of all stripes), all the education in the world will not turn the national savings rate around.

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The Financial Times Takes Jim Cramer to Lunch

My favorite weekly newspaper column is the Saturday Financial Times “Lunch with the FT.” An FT journalist takes a person well known in their field out to lunch at the restaurant of their choice. The lunch will usually bring out a different perspective about the person, and it’s fun to read what they ate and how much it cost.

Today FT’s Chrystia Freeland had lunch with the Mad Money madman and TheStreet.com (TSCM) co-founder Jim Cramer. The two dined in a private room at Bobby Van’s Steakhouse across from the New York Stock Exchange, “an old-fashioned steak and seafood joint that is all about men and money.” Cramer and Freeland ate in a private room, but diners can eat in the Vault Grill - J.P. Morgan’s original bank vault.

With his Sun and Mercury conjoined in Aquarius, Cramer shines by expressing himself in original and unpredictable ways. An air sign that rules electronic communications, Cramer relishes being “on the air”. Aquarian energy can be rebellious and non-conforming to the point of eccentricity. One of the segments on Mad Money is the “lightning round” where people call in and ask Cramer’s opinion of a stock in “rapid fire succession.” Aquarius and its planetary ruler Uranus rule lightning and freaky weather patterns; the symbol for Aquarius resembles a streak of lightning. CNBC calls Cramer “the most electrifying man on television.”
Aquarius is known as the humanitarian of the zodiac. This energy espouses freedom and equality; usually uniting as a group for a common cause (Cramer just joined the Elks). Cramer is passionate about bringing his knowledge and experience of the stock market to the “regular guys.” And if that means wearing a diaper to make his point, so be it.

Cramer was born with Mercury retrograde, a position shared by many famous writers as it gives them a more introspective nature that can enhance the color of their writing. He tells Freeland that he “always wanted to be a journalist.” Cramer began his career as a newspaper journalist, and in retrograde fashion, has returned to writing. Besides TheStreet.com, he writes a column in New York magazine, and has authored five books. His first book, Confessions of a Street Addict, is more memoir than investment how-to. It’s Cramer at his most raw and it’s extremely insightful about life on “the Street”. In short, a must read.

With his Sun/Mercury in a challenging aspect to Saturn in Scorpio, Cramer truly does fear and loathe expressing his “innate insanity” before the public. His real feelings are probably to be found below the surface of a frozen lake. Pluto in Leo opposes his Sun/Mercury. Cramer wrote a New York magazine cover story about himself asking the question, “Why does everybody hate me?” Cramer has an extreme temperament and doesn’t take kindly to influential people or publications (such as Barron’s) that oppose his views. But he does enjoy the drama of dishing it out, such as his infamous “they know nothing” rant attacking the Federal Reserve last summer.

Major changes are in store for Cramer as transiting Neptune in Aquarius is challenging his Sun and Saturn, followed by his Pluto and Mercury, between now and 2010. He needs to take care with his own financial and business arrangements, which will take a new direction. The public will see more of the humanitarian side of a compassionate Cramer.

Jim Cramer: February 10, 1955 time unknown Wyndmoor, Pennsylvania
Related Posts: “Cramer Acknowledges the Power of Pluto!”

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Proposals for a Depreciating Housing Environment

Being “upside down” is the term for when a borrower owes more on a car than the car is worth. Cars have always been a depreciating asset, but real estate has not been viewed in the same way. That is about to change.

Today’s New York Times describes how falling home prices are affecting sellers who are not only taking a loss on their home, but have to bring cash to closing to cover their shortfall. The housing market has become stagnant as inventories of homes for sale continue to rise, but homeowners and banks are unwilling to sell at a deep discount.

Some members of Congress, such as House Financial Services Committee Chairman Barney Frank and Senate Banking Committee Chairman Christopher Dodd, have called for the federal government to buy certain mortgages. A plan by John M. Reich, the director of the Office of Thrift Supervision (regulates the S&Ls), would allow a “negative amortization certificate” lien to be put on the home. My interpretation is that the plan could only be financially viable if investors bought the lien certificate at a deep discount on the anticipation that real estate values will at least modestly rise. Since I believe that is unlikely to occur, the more likely outcome of Reich’s plan would be to essentially put real estate in a “lockdown” mode. No buyer will come to close unless all liens are removed (or the title insurer is willing to exempt the lien). In a depreciating asset environment, lenders would have to give certificate lien holders a financial incentive to allow the property to close unencumbered at a lower price.

Banks are becoming more vocal with their own proposals. Credit Suisse (CS) is complaining that the Federal Housing Administration’s FHA Secure program to exchange subprime mortgages to a federally guaranteed fixed rate offers little help. The Swiss bank has held meetings with the FHA, proposing that borrowers who have made at least six mortgage payments should qualify. Bank of America (BAC) which will have even greater mortgage exposure after it acquires Countrywide Financial (CFC), proposes “to create a new federal agency that would buy vast quantities of delinquent mortgages at a deep discount and replace them with fixed-rate federally guaranteed loans.”

The federal government should not be purchasing mortgages. A more viable solution would be for the government to guarantee mortgages after the home has been substantially reduced to a value level that leaves little financial risk. In order for this to happen, lenders would have to be willing to accept that their writedowns are real.

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President Bush: Iraq war boosts U.S. economy

Yesterday President Bush chalked up another reason to justify the war in Iraq: it helps the U.S. economy. In fact, the President believes fighting in Iraq has “cushioned the blow of the subprime mortgage crisis”, according to an article in today’s Financial Times. The President said the Iraq war helps “because we’re buying equipment and people are working.”

In essence, America must wage war and go shopping in order to keep the economy going. For all the money wasted on war and a stimulus package that won’t solve anything, America could have:

• Universal healthcare coverage for every American through the same plan covering Congress and the President.
• Repair and expand the nation’s bridges and roads.
• Increase the capacity and reliability of the nation’s electrical grid.
• Repair and replace the nation’s aging water, sewer, and flood control systems.

These economic programs would improve America’s competitiveness and build long lasting assets. President Bush’s “war economics” not only cause our citizens to lose their lives, but have no lasting benefit.

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Uno Opens the NASDAQ

Uno, the first beagle to win at the Westminster Kennel Club Show February 12, barked in the opening of the NASDAQ this morning.

CNBC’s Rebecca Jarvis got to interview Uno and his handler, Aaron Wilkerson. So does America’s #1 dog use any of the products produced by NASDAQ traded companies? U-NO, he’s on Pro Plan, which Wilkerson says gives him his shiny coat. (Pro Plan is made by Purina which is owned by Swiss company Nestle.)

Uno’s real name is K-Run’s Park Me in First. With a name like that, you’d expect him to make history as the first beagle to win Best in Show at the Westminster Kennel Club. Uno was born on May 5, 2005 (time unknown) in Belleville, Illinois. Uno has the Moon and Mercury in Aries, reinforcing his need to let everyone know he’s top dog! Aries energy thrives in competitive sport and jumping head first into whatever they do. Uno scores in the charm department too. His Sun and Venus are in earthy Taurus. People adore Uno because he’s the kind of dog you can play and cuddle with – not the usual froufrou breeds that win the dog show year after year. Taurus rules money, so Uno would especially enjoy visiting a stock exchange. Uno’s Sun squares glamorous Neptune, ruler of film. Uno is very photogenic and no doubt will get several lucrative advertising/sponsorship deals.

As the saying goes, “the stars were aligned” Tuesday evening at Madison Square Garden. The February 6 solar eclipse was exactly aligned with Uno’s natal Neptune, conferring a magical aura about Uno that proved irresistible to the judges. Jupiter in Capricorn is harmonizing now with Uno’s Taurus Sun, bestowing a big award. The Sun in Aquarius was challenging Uno’s Venus, reinforcing the judges and audiences attraction to him. And finally, the Moon was in Taurus that night, by Wednesday its First Quarter phase was exactly aligned with Uno’s Sun.

Snoopy is beaming with pride.

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Microsoft Vista - Mercury Retrograde Bugaboo

Why are most corporations delaying the installation of Microsoft’s (MSFT) Vista operating system? Here’s my slightly delayed real time experience:

I was fast and furiously typing a blog post in Word (and frequently saving it), when suddenly the screen briefly flashes and my eyes dart down to see a “Windows Update” at the bottom of the screen. My Word document disappears, as Vista begins installing updates. I suppose it would be far too logical to first put a box on the screen asking if you want to install updates now or not!

Coincidentally I had just read Walter Mossberg’s Wall Street Journal column about his experience with Microsoft’s first major Vista update. The free update will be released to the public next month for current Vista users. It doesn’t sound encouraging. The only positive comment Mossberg had was that it cut the time of copying large files.

During the almost ten minutes it took Vista to do this “automatic” update on my Vaio, I’m thinking about Mercury being retrograde and how “the trickster” becomes even more tormenting as the Moon is in Gemini (Mercury’s sign) today. My joke is that Mercury is retrograde every day with Microsoft products. (Actually Microsoft’s stock chart* – when it first publicly traded on the NASDAQ – was when Mercury was retrograde.)

Once the updates were finished, I got a message saying “Windows updates require restart”, and then it just automatically restarts without my permission. After the reboot, Windows asked if I wanted to see what updates were installed on the computer. I clicked “yes” and saw that virtually all of the updates were security features. (As Mossberg points out in his column, the upcoming Vista update still requires using other vendor security/spyware/anti-virus software packages.)

When I went back into Word, a sidebar showed two versions of the post I was writing. The first one was for the time when Vista started updating, and the former was a minute earlier (when I last saved the document). I clicked the first file, and thankfully my document came up exactly at the point where I left off.

Maybe Microsoft should hire programmers who have several planets in Virgo to get their software perfected.

* Microsoft: March 13, 1986 9:30 AM EST New York, New York

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Phishing for Banks

Banks are the most vulnerable to internet security threats, according to the IBM Internet Security Systems X-Force 2007 Trend Statistics Survey published last month.

Cyberthieves go “phishing” by creating a bogus bank (or other company) website. The most common ways a customer becomes their catch is:

• The customer mistypes the bank’s web address and is taken to a bogus website that appears to be the real site. (Watch what you’re typing in. Carefully examine the site when it comes up. Does it look right? Most importantly, does the web address at the top begin with “https” and have a lock icon following the URL address. Many financial sites will say “identified by VeriSign” after the lock icon as well.)
• The customer has a Trojan (malicious software) imbedded without their knowledge on their computer. When the customer types the bank’s web address or clicks it on their bookmarked list, they are redirected to the bogus site. (If this ever happens, write down the URL information and immediately contact the bank.)
• The customer receives a bogus email that pretends to be from the bank, requesting the customer’s personal information. (Do not respond to the email or open any attachments. Contact your bank immediately.)

The timing of this CNN story on bank phishing couldn’t be better. Today the Moon is in Taurus, a sign that rules banks and financial matters. The Moon is in its First Quarter phase, squaring the Sun in Aquarius. Aquarius rules computers and the internet. With Mercury retrograde in Aquarius, the CNN story suggests “it might be worth it to go retro and compare your online banking information with the paper record.” The article serves as a good reminder to always verify that a website is secure before entering any personal information.

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Surprise! Your Brain Needs Cholesterol

“This drug makes women stupid.” – Dr. Orli Etingin, vice chairman of medicine at New York Presbyterian Hospital, commenting on Lipitor at a recent luncheon discussion on women and the brain.

Remember the government’s commercials showing a fried egg with the voice over stating, “This is your brain on drugs”? The ad was referring to illegal drugs, but apparently your brain can achieve the same effect if you take any of the legally prescribed drugs the FDA has approved to lower cholesterol. According to an article in today’s Wall Street Journal, your brain needs cholesterol to fully function: “The brain is largely cholesterol, much of it in the myelin sheaths that insulate nerve cells and in the synapses that transmit nerve impulses. Some doctors theorize that lowering cholesterol could slow the connections that facilitate thought and memory. Statins may also lead to the formation of abnormal proteins seen in the brains of Alzheimer’s patients.”

The Journal article also cites that “cognitive effects (fuzzy thinking and memory loss) are the second most common problem, after muscle aches, reported by patients to the Statin Effect Study at the University of California, San Diego.”

How come Lipitor’spitchman Dr. Robert Jarvik doesn’t tell you that? Could it be that most senior citizens are not suffering from Alzheimer’s – that their statin is causing their memory loss? As big pharma keeps pushing for ever lower cholesterol numbers, younger people on the drugs will fear they’re losing their mind.

How do patients and medical professionals know statins are causing “cognitive effects”? The Journal quotes Gayatri Devi, an associate professor of neurology and psychiatry at New York University School of Medicine. Dr. Devi says “the changes started to occur within six weeks of starting the statin, and the cognitive abilities returned very quickly when they went off” (the statin). Other studies and patients quoted in the article cite the same results.

Of course big pharma and many cardiologists will give the usual “the benefits outweigh the risks” argument for taking statins. Consumers shoud consider that:

• Most of the staunchest advocates for statins have ties to the pharmaceutical industry in some form or another. For example, the Journal article quotes the past president of the American Heart Association, and states that “Dr. Gotto has consulted for most of the statin makers and has been involved in many of the trials.”
• A study of the drug Vytorin found that plaque actually grew faster in patients taking Vytorin (a combination of Zetia and Zocor) than Zocor alone!
• There is a growing debate among some doctors and scientists that lower cholesterol does not decrease the risk of heart disease or heart attack, particularly in people who have no other risk factors beyond high cholesterol.
• Several members of Congress are investigating the effectiveness of the drugs and with big pharma’s marketing of them.

Consumers need to keep these things in mind (no pun intended) when stacking up the growing list of risk factors to their personal situation.

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Valentine’s Day: Love is in the air

There are numerous legends and theories regarding the origins of Valentine’s Day. In fact, Valentine’s Day seems to be an amalgam of a saint’s name, a Roman fertility festival, and an English poet’s ode for a king’s marriage. In contemporary times, Valentine’s Day provides a profitable opportunity for retailers to sell cards, candy, flowers, and all kinds of romantic related products.

Valentine’s Day occurs on February 14th each year when the Sun is in Aquarius. The Sun rules matters of the heart. Aquarius is not a sign generally associated with the traditional trappings of love and romance. But Valentine’s Day isn’t just for and about lovers. Children enjoy the day just as much or even more than adults do. Aquarius is an air sign that relates to circulation. The real message of Valentine’s Day is to circulate the energy of loving kindness to family, friends, and all of humanity. Love is always in the air.

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