An Astrological Overview of the Global Economic Crisis
“Stockmarkets plunge as evidence emerges of worsening economic conditions. It is startling how quickly and savagely the global credit crunch is morphing into a full-blown economic crisis.”
- headline from The Economist 24 October 2008
In February 1988, at the Saturn-Uranus conjunction in the final degree of Sagittarius, the sign of financial speculation, various high-risk methods and practices began to take deeper root within the global financial markets and started replacing existing prudent approaches to investments which were backed by tangible assets.
Chief amongst the speculative practices were derivatives, financial instruments whose value is tied to the value of other investments such as futures, forwards, options, or swaps; and the securitization of mortgages wherein property ownership debt was sold to other investors rather than remaining on the balance sheets of lending institutions.
These foolish and high-risk financial practices, promulgated over the last twenty years by investment bankers born into the Pluto (compulsive) in Leo (gambling) generation, have now resulted in the institutionalization of a casino mentality within the global economy. American, Canadian, Australian, European and Asian financial markets are all equally under its sway.
This year, as Pluto transits the 30th degree of Sagittarius and conjoins the 1988 Saturn-Uranus conjunction degree, while concurrently Saturn and Uranus prepare to oppose in the heavens, a brutal financial reality has been laid bare: our global economy has been built on a house of cards over the last 20 years and now it has come tumbling down. With the opposition of Saturn and Uranus exposing just how pervasive is the problem, and with the ingress of Pluto into Capricorn, the party is over.
One observes that the first of the five Saturn-Uranus oppositions will perfect on Election Day, right as Pluto makes its third and final transit through the 1988 conjunction degree in 29 Sagittarius and the Sun transits the degree of Pluto in the 1988 mundane horoscope. Casting the 1988 Saturn-Uranus conjunction for Washington, D.C., one finds the 2008 Saturn-Uranus opposition occurring across the horizon of that horoscope.
From The Economist: “the origins of the credit crunch (and looming global recession) lie in America’s housing bust, which has resulted in huge losses for banks worldwide on securities backed by souring American mortgages. The crisis intensified because of the failure of an American bank, Lehman Brothers.”
America’s progressed Mars, ruler of the USA Sibly horoscope’s IC (ruling real estate), stationed retrograde in 2006 and can be seen as the astrological underpinning of ‘America’s housing bust’. This writer had predicted the reversal of the American real estate market as early as 2004, but was scoffed at by those ‘flipping condos’ for a $50,000 profit less than three months after originally buying the property.
The trigger for the ‘Nightmare on Wall Street’ occurred over the weekend of 13-14 September when one of America’s five largest investment banks, Lehman Brothers, filed for bankruptcy and another top investment bank, Merrill Lynch, sold itself to Bank of America right as it teetered on the edge of insolvency. At the Virgo-Pisces Full Moon on 15 September, the Dow Jones plunged over 500 points and began the present carnage on Wall Street that has now resulted in the loss of over two trillion dollars in stock market value. Key to this relentless and panicked sell-off of stocks was the station of Pluto in 28 Sagittarius, exactly conjunct the New York Stock Exchange chart’s progressed Sun.
NYSE progressed Uranus perfected a second volatile opposition with Pluto on 30 March 2008; the first aspect (direct) was in 1966 at the last Saturn-Uranus opposition. The NYSE is also having a progressed Jupiter-Pluto square this year, resulting in trillions of dollars of losses in stock market value.
The panic behind the sell-off of stocks in the market can be seen in the transit of Neptune over the NYSE Pluto. An additional factor for the pervasive fear paralyzing global financial markets are the three biseptiles now forming in the heavens between Saturn and Pluto. These aspects continue through July of 2009.
One can say that the five trines forming between Jupiter and Saturn in 2007-08, the last three of which occur in earth signs (Virgo-Capricorn), are producing a situation wherein any investments not backed by tangible assets are going down in flames. This present Grand Conjunction cycle, begun in May 2000 when the NASDAQ market tanked as the dot.com bubble burst, is the yardstick for how to measure the duration of the global economic recession that we are now entering. It is safe to say that the current financial crisis will last until the three Jupiter-Saturn oppositions form between May 2010 and March 2011, the last in 14˚ Aries-Libra and exactly at the next USA Saturn return.
The biggest concern that all should worry about in America is the 26 January 2009 Solar Eclipse in 06˚ Aquarius exactly conjunct the USA South Node. This, and the station of Pluto in 03˚ Capricorn opposing the USA Venus between 25 January and 18 June 2009, could result in irrational financial fears gripping the population and resulting in a run on the banks that will bring many financial institutions into insolvency and have them seized by the Office of Thrift Supervision and then placed into the receivership of the Federal Deposit Insurance Corporation. The insolvent Washington Mutual (assets of $328 billion) saw its customers withdraw $16.7 billion in deposits in just ten days.
© 2008 Robert P. Blaschke