Financial crisis becoming entrenched

The US dollar and stock market have fallen into a renewed slump. Each new bit of incoming data and news appears to be slowly but surely wringing remaining vestiges of hope for an early recovery out of investor minds.

Recently, the Federal Reserve, the US central bank, boldly reduced its policy interest rates to the range of 0.0% to 0.25%. While the stock markets initially rallied on the news, their sense of relief was short lived and quickly gave way to renewed concerns about the economy and financial markets. In part, this is due to the realisation that the Fed has now run out of ammo; it cannot reduce interest rates any further. The development on the foreign exchange market has also, as expected, been unhelpful. With US interest rates now much lower than in Europe and elsewhere, money has flowed out of the USA and the dollar plunged in value against other currencies. In turn, the weak dollar is feeding into the concerns of international investors, who not only see their returns on US assets dwindling but also the value of their US assets declining. On top of that, bad news about the remaining US financial institutions, the three automakers and the deteriorating earnings outlook of major companies like GE has served to increase the concerns of investors. Today, the erosion of share prices accelerated. The volatility of financial markets and the souring outlook for the US economy is as predicted based on the SAMVA USA chart (Perpetual Union).

Predictions on financial stability
The Venus-Jupiter period is operating. As explained in the article The year ahead for the USA (December 31, 2007) this period places a major focus on financial stability. Further, in an article More financial market volatility in 2008 (February 2, 2008) the following was stated:

"December [2008]: transit L6 Jupiter enters Capricorn H7. While moving into a good house, the 7th house, the financial stability of the USA is expected to weaken as Jupiter is debilitated (has half strength only) in this sign."

Predictions concerning the US economy
In the article The banking crisis of 2008 and the SAMVA USA chart (March 17, 2008) the following was predicted for the economy.

"Looking forward we can note that transit Jupiter will enter its sign of debilitation in late 2008 and will a year later enter the 8th house. These placements are not helpful for financial stability. In other words, the outlook for the economy is not very good for the next few years."

Current astrological dynamics
What follows is an overview of the period and transit dynamics in the chart at the present time.

Transit 6th lord Jupiter is at 1° Capricorn and 7th house. In this sign Jupiter becomes debilitated and weak. As such its indications, such as financial stability, do not receive cosmic support. Jupiter also is a general indicator for financing and this area of the economy is hurting, too. Moreover, transit 2nd lord Sun, which rules wealth, the currency, the leader of the country and the state itself, is in Sagittarius and 6th house, which is ruled by Jupiter. In the 6th house, a planet becomes weak on account of bad placement. In other words, its indications tend to get caught up in controversy, conflict or financial instability. Given these placements it is no wonder that the government has become almost impotent to alter the course of events with regard to the stock market, the dollar, the functioning or viability of major firms in the economy and rising unemployment. Even a shoe is tossed at President Bush and all he can do is duck.

There is one difficult aspect at work, the aspect of natal 8th lord Saturn at 27° Scorpio and 5th house to transit Saturn at 27° Leo and 2nd house. This aspect explains the difficult time by working people, with unemployment rising and major lay-offs or work stoppages looming in the all-important the auto-industry. Along with the aspect of transit Jupiter to transit Saturn, the aspect of natal Saturn to transit Saturn explain the recent sharp drop in the oil price.

Finally, the planets Mars, Mercury and Venus have been afflicted or weak in transit recently, adding to the sense of pervaisive weakness in the US economy and financial markets. At such a time it is not surprising that the financial crisis is becoming entrenched - in fact it was predicted.