TRANSITS AND THE ECONOMY
Theodore White, classical astrologer
classical astrologer, and one of the founding fathers of the United States,
Benjamin Franklin, once wrote ~
borrower nor a lender be…”
This sound advice from
the man whose image graces the U.S. $100 dollar bill has never been taken by
the international bankers who continue to help ruin the world’s economies.
World transits continue
to show that the international bankers are the cause of the current
"credit crisis" that has hit Europe and North America this year.
We’ve seen this resulting from the Saturn-Neptune opposition that began in
August 2006, and came to a head late last year when a inner core of
international bankers bet against the mortgage industry and “shorted” bets
on the massive hedge-funds that packaged all types of mortgage-loans that were
then traded on the world market.
Global transits indicate
that the month of October 2007 will see a continued downturn with the coming
conjunction of transiting Saturn to the transiting Lunar South Node in the
early degrees of Virgo.
While Jupiter helped to
“inflate” values and prices, now Saturn will “deflate” values. This
process has already started and will continue through 2007 and into 2008.
Bankers have called the “crisis” that has hit investment banks like Bear
Sterns, and Morgan Stanley, among others, “a mistake” ~ as investment
banks “write-off” hundreds of millions and billions of dollars of debt
resulting from widespread, and failed corruption, fraud, and speculation in
the mortgage-lending industry.
Joel Bowman recently wrote, “In
matters of the heart, they say it is better to have loved and lost than to
have never loved at all. We’re not sure the same can be said for matters of
the wallet. After all, “money borrowed” does, at some point, demand a
dutiful transformation into the more painful form of “money returned”.
This is the crux of the financial fine print that got so many of those
sub-prime pushers and junkies into such trouble in the first place. Across the
US, foreclosure rates are at frightening levels, especially in “sunbelt
states” like Florida and California.
While Ben Bernake,
chairman of the Federal Reserve, says that “he is working on” not
repeating the mistakes made that led to the massive credit crunch that
resulted from the bursting of the mortgage-lending bubble, that won’t help
the people who are losing their homes.
“RealtyTrac, a group that maintains a national database on US real estate,
tells the grim tale. While 43 states experienced year-over-year increases in
foreclosure activity, just five states - California, Florida, Michigan, Ohio
and Georgia - accounted for more than half of the nation’s total foreclosure
Market watcher Bill Bonner
reports in September 2007 that, ~
“Countrywide known as
“Countryslide” in the New York Post has seen its share price fall 60% this
year. The stock fell 5% on Monday…following word that the firm needed a
bailout pronto. The company’s president, Mozilo Angelo, said the business
desperately needs cash to continue operations. Fifty mortgage lenders have
closed their doors so far…and more probably will before the correction is
The resulting crash of
the mortgage-lending business has led to a crisis in the money-markets in
Europe, and the destruction of the housing market in the United States, which
previously enjoyed nearly seven years of unprecedented growth in housing
starts, and sales.
The pressures resulting
from the widespread speculation in housing and the failure of central banks to
respond is part and parcel of the hidden roles of international bankers who
have caused the Panic of 2007, resulting huge earnings from some investment
banks, while others suffered huge losses.
In England, the “Panic
of 2007” led to a bank run as reported by David Callaway of Market Watch ~
came last Friday, and we all awoke to pictures of British savers lined up in
Depression-era, breadline formation to yank their funds out of Northern Rock,
after the British banking company said it needed to be bailed out by the Bank
Monday, people had begun withdrawing money from other British banks, and by
the time things calmed down the government had to step in and pledge to stand
behind all deposits at Northern Rock.
Northern Rock panic is just the latest turn of a global storm whose next
direction nobody can predict. Who would have thought it would hit E-Trade
Financial Corp., or HR & Block Inc., or the German Banking System?”
On Sept. 6, 2007
Callaway suggests the coming holiday season for global traders and their
families might be less than stellar this December ~
days after summer vacation ends might seem a bit early to talk about
Christmas, even for the most profit-hungry retailer. But the confluence of
events on Wall Street and in Toyland this week has already cast a Grinch-like
shadow over Whoville for this holiday season.
bad enough that the credit crisis, now a global problem, is threatening
thousands of financial and mortgage-related jobs between now and December, not
to mention the seven-figure bonuses of those poor souls who are left working
in the financial centers of New York, London, Tokyo and Hong Kong.
now that Mattel Inc., declared war on Barbie and her lead-eyed dog because of
unsafe Chinese manufacturing practices, Christmas is suddenly looking like a
bust for the kids as well as their condo-buying, champagne-swilling parents.
the scariest news, Virginia, is that the Federal Reserve Board is indicating
that this thing hasn't even begun to wind its way through the broader economy,
at least by my reading.
Fed's Beige Book economic report on the regions of the U.S. on Wednesday
showed that economic activity continued to expand in August across much of the
nation, although at a slower pace. Indeed, despite the headlines about the
credit crisis and the daily turmoil in the financial markets, stocks actually
ended the month higher.
say this is a sign that the sub-prime mortgage crisis is contained and that
even with a correction in housing prices the U.S. economy will continue to
march along like those lead-painted tin soldiers we all used to play with as
kids, blissfully unaware of toy recalls, or China for that matter.
the fact that the larger economy continued to grow last month is more of a
sign that for many the housing crunch is still simply an inconvenience to be
waited out rather than a national re-pricing of an asset class. If the Beige
Book is to be believed, we could be just at the beginning of the pain that
this bursting bubble might cause.
why stocks didn't react after it was released. No weakening economy means no
interest rate cut from the Fed -- something the markets have been expecting
for weeks now. At the very least, barring a disastrous report on August jobs
on Friday morning; it means the Fed might stay on hold at least until its next
meeting on Sept. 18. The Dow Jones Industrial Average closed down 143.39
points at 13,305.47.
scenario bodes poorly for the stock market in September, historically one of
the worst months for stocks, and October, historically the month for stock
market crashes. And while December is usually a good month for markets as
holiday buying sparks hopes for first-quarter profit, a consumer crunch at
that time could scuttle things for this year -- not to mention the 2008
to the National Bureau of Economic Research, the last time we had a recession
during an election year was in 1980, when Ronald Reagan trounced Jimmy Carter,
the incumbent. Obviously, it depends on the severity of the downturn, but
something tells me the presidential candidates are going to start talking a
lot more about the economy as the primaries approach at the turn of the year.
is no longer a U.S. problem, however. Foreign banks and sovereign buyers are
loaded with this mortgage-backed junk, and despite some clever head fakes from
the largest central banks, for the moment the markets are still frozen when it
comes to trading commercial debt.
Rudloff, chairman of London-based Barclays Capital, and one of the elder
statesmen of the European fixed income markets, was quoted on the front page
of the Financial Times on Wednesday as saying the global credit markets will
stay stuck until investors are capable of accepting "a new price
level" for the assets of many distressed banks and mortgage lenders.
It's the same understanding that homeowners
around the country now have as well -- even in Whoville. Only this time the
"roast beast" that Cindy Lou Who carves up on Christmas morning
might be the bull market.”
To see how investment
banks have made-out from the crisis, all one has to do is look at their
Third-Quarter Earnings Reports released Sept. 20, 2007 ~
NEW YORK (Reuters) - Two Wall
Street investment banks had dramatically different success in weathering
market turbulence triggered by a sub-prime mortgage meltdown, as results at
Goldman Sachs Group Inc (GS.N) easily exceeded expectations, while Bear
Stearns Cos Inc (BSC.N) fell far short.
Third-quarter profit at
Goldman, the largest securities firm by market value, soared 79 percent to
$2.85 billion, or $6.13 per share, from $1.59 billion, or $3.26 per share, a
year earlier, as bets against mortgages helped boost revenue from fixed-income
trading to a record.
Bear Stearns profit plunged
to a five-year low, sinking 61 percent to $171.3 million, or $1.16 per share,
from $438 million, or $3.02. Results were hurt by sub-prime mortgage
write-downs, an 88 percent slide in fixed-income trading revenue and $200
million of costs from the collapse of two of its hedge funds.
Bear Stearns' shares was
buffered by comments from the company's chief financial officer, Sam Molinaro,
who said on a conference call: "The worst is largely behind us."
Largely behind us? Not for
your average American family and businesses ~
number of foreclosure filings reported in the U.S. last month more than
doubled versus August 2006 and jumped 36 percent from July.
total of 243,947 foreclosure filings were reported in August 2007, up 115
percent from 113,300 in the same month a year ago
were 179,599 foreclosure filings reported in July.
foreclosure rate in August 2007 was one filing for every 510
The rapid deterioration could not
come at a worse time for British bank HSBC that had to set aside $10.5bn (£5.4bn)
to cover bad loans in the U.S.
The number of bank repossessions
jumped to 42,789 in August 2007, compared with 20,116 a year earlier,
according to RealtyTrac. In July 2007 there were 26,842 bank repossessions.
states of Nevada, California and Florida had the highest foreclosure rates in
the country in August 2007.
reported one foreclosure filing for every 165 households — more than three
times the national average. The state had 6,197 filings in August, an
increase of 21 percent from July and more than triple the year-ago figure.
foreclosure rate was one filing for every 224 households. The state reported
the most foreclosure filings of any single state with 57,875, up 48 percent
from July and an increase of more than 300 percent from August
had one foreclosure filing for every 243 households. In all, the state
reported 33,932 foreclosure filings, up 77 percent from July's total and more
than twice the year-ago total.
Ohio, Michigan, Arizona, Colorado, Texas
and Indiana rounded out the 10 states with the highest foreclosure
got a crisis," says Jeffrey Lubell, executive director of the Center for
Housing Policy, a Washington, D.C., research group, according to the Christian
Science Monitor. The proposed expansion of federal insurance for loans is
"a good start but is not aggressive enough."
he says, the rate cut offers reassurance but not a solution.
will get more credit flowing," he says. But "it doesn't ultimately
forestall the foreclosures that are going to happen."
housing-crunch relief, whether provided by politicians or the central bank,
raises difficult questions of how far officials should go toward a bailout of
private-sector lenders and borrowers who, by many accounts, acted unwisely.
the White House, and the Fed are all navigating that issue cautiously. The
Bush administration, for one, is wary of any moves that would make taxpayers
liable for a big housing rescue. But none of these parties is taking a
do-nothing approach. Several reasons stand out:
at-risk homeowners didn't realize the risks they were taking. Many others,
it's true, were buyer-investors, who knowingly took loans with risky terms.
But often mortgage brokers focused borrowers on the initial "teaser"
interest rate, or promised that borrowers could refinance later to avoid a
and borrowers are paying a price already. Foreclosure rates have risen to
record levels, and some mortgage companies have collapsed. This week the
largest home lender, Countrywide, said it has virtually exited the business of
making sub prime loans to people with poor credit histories.
risks to the economy have grown in recent weeks. Foreclosure is just one of
the forces affecting home prices. But economists at Goldman Sachs estimate
that the rise in foreclosures over the past year translates into a decline in
home prices of about 6 percent by next year. A continued decline in home
prices could affect consumer spending.
a decline also threatens to further expand the number of foreclosures. If home
prices are falling, more recent buyers go "under water." If a rate
reset pushes them into default, they can't pay off their loan by selling the
house. Congress is also mulling other moves, including letting two
government-created agencies, Fannie Mae and Freddie Mac, buy risky loans once
they're renegotiated, to keep borrowers in their homes. Another proposal is to
enable bankruptcy judges to adjust loan terms. Mr. Lubell says other steps
should include more money for nonprofit foreclosure counseling and the
creation of innovative mortgage products for homeowners at risk.
is reported that homebuilders throughout the United States are facing
significant challenges from oversupply, tighter lending standards,
foreclosures and lower housing prices. Home building companies are also
struggling against degrading book values as they are forced to write down the
values of unsold homes and land all over the country.
transits at this time in autumn 2007 continue to indicate a strongly negative
market as Saturn rises in the east at sunrise through the fall season months
leading to the holiday season in December.
By the time mid-December
2007 arrives, much of the damage of the Panic of 2007 will have been done. At
that time in December, world transits will translate into a series of global
transits that will “fix” the market crisis into a more prolonged state,
resulting in widespread anger at the those responsible with blame thrown at
international bankers, those involved in financial and mortgage fraud, and
politicians, who are now beginning to realize that the results of the Panic of
2007 will play out dramatically in 2008 ~ a major election year in the United
Those who are feeling the
pinch are advised to circle the wagons, and to protect their interests through
the autumn months of 2007, while planning for courses of action in 2008.
Transits ahead show that
despite the crushing effects of the credit crunch due to the bursting of the
mortgage-lending bubble and housing industry, that opportunities will abound
in 2008 to offset some of the damage. However, there is still more bad
economic news ahead during the fall of 2007.
It is important not to
allow the coming Christmas season feel like a depression; although it may
“seem” that way, it is as a result of the greed of others. The transit of
Mars in tropical Cancer (men at home) will cause some upsetting moments
because of the resulting downturn in the economy. The transit of Mars from the
end of September 2007 through to early May 2008, overall, indicates the need
to “readjust” and to “reassess” one’s career, location, and place in
This will be painful for
many who have not planned on the end of 2007 being this way, however, by the
time mid-December 2007 arrives, it will be apparent that important
life-changes are taking place for many millions of families who have lost, or
will be losing homes.
Handling anger, and
disappointment properly, while not allowing the emotions to cloud the judgment
is critical. This is because of the coming world changes in transits by
December 2007, and the new year of 2008, which will result in major changes
for millions upon millions of people throughout the world.
At this time of writing
(mid-September 2007) there is still time to prepare for these world transits.
The months of October, and November 2007 will be the most difficult ~ leading
to further changes, and upsets in the month of December, before the ingress of
Jupiter into tropical Capricorn and the translation of the Lunar Nodes from
mutable to fixed quality at the same time in mid-December 2007.
One of the results of the
Panic of 2007 will to make many people more politically-oriented, as sides are
taken, and candidates running for office will be closely scrutinized for their
policies ~ especially relating to the economy, and the war in Iraq.
Saturn’s transit near
the South Lunar Node over autumn 2007 and into winter 2008 strongly indicates
that the so-called “sub-prime” crisis will crystallize into a major call
for regulation throughout the economic climate of the United States.
It is strongly advised
for those seeking to navigate these challenging times in world transits, and
the resulting world events, to take it easy through the months leading to the
end of December 2007. Do the best one can by networking with others, sharing,
bartering, and planning for action in 2008.
required, and a new outlook on the future will be mandated. These are times to
grow stronger in spirit, to love one another, and to keep a close eye on those
whose only so-called “love” is corruption, materialistic greed and
Remember that those kind
of people have the worst of all possibilities coming to them in the future,
and that their lack of humanity, justice, understanding, and love will come
back to bite them in a manner that they have not considered.
Have faith in those
forces of love that are watching these individuals, and groups ~ because they
are being closely watched ~ and their names, and their crimes ~ the things
that their own hands have brought forth ~ are being written in a book that
cannot be destroyed.
OTHER ARTICLE BY THEODORE WHITE:
CHALLENGING TRANSITS OF AUTUMN 2007
How to Survive & Prosper
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