Jupiter in the SAMVA USA chart and US monetary policy

[Guest guest]

Dear friends,

 

On December 11, 2007 the US central bank, the Federal Reserve, will meet to discuss its interest rate setting, whether they should reduce the Federal Funds rate (the policy rate). In recent days, high ranking Fed officials, including Mr. Bernanke, have hinted at a rate cut. Accordingly, the stock market has priced in a rate cut, and a modest rally taken place in the stock market this week (see accompanying news story from Bloomberg.com)

 

Why Monetary Policy is so important in the USA

The importance of monetary policy is seen in the placement of Jupiter in the SAMVA USA chart. It seems to have a significant bearing on US Monetary Policy due to its status as lord of the sixth house in the chart. The sixth house rules financial stability, which in turn is linked to the cost of debt in the country. A high or rising interest rate makes the debt more expensive, placing a strain financial stability. Likewise, a low or declining interest rate makes it easier to carry debt and thus helps those in debt.

 

Another point is that Jupiter is closely aspected by L1 Moon in the SAMVA USA chart. The Moon is a general indicator of government leadership (the cabinet), which suggests the importance of such decisions for the government and the country as a whole. Morevoer, Jupiter is widely conjunct L10 Mars in the chart, but Mars is a general indicator of the executive branch of government. This adds to the eminence of monetary policy, especially now that the 50 year rule implies that the influence of the mutal aspect of Jupiter and Mars is growing. The aspects of these powerful and important planets to Jupiter, along with the aspect of L2 Sun to H1 MEP, as well as the placement of weak L4 Venus, which rulse fixed assets, explain why the cost of debt and financial stability are so important in the country. The influence of L2 Sun on H7 MEP, which helps to explain

the power status of the country internationally, also helps explain why the influence of US monetary policy is so great to the international financial community as a whole.

 

What the transits in December imply

Finally, we must now consider the transit condition of Jupiter in the month of December 2007. As we have discussed before, transit Jupiter is now moving in the early degrees of its own MT sign, Sagittarius. This suggests its strength is returning. However, soon the Sun will begin to catch up with Jupiter, making it combust. This influence will beging to be felt around 10 December. At the same time, Jupiter will begin to feel the impact of transit Ketu in the early degrees of Leo H2. This suggests to me that the decision arrived at the monetary policy meeting of the Fed on December 11 will not pacify the market. Rather it is likely to be linked to some more volatility. This could likely be because the rate decline does not materialise as the market now expects. The predictable effect on the stock market would be that it would decline further. The fed may react to recent information suggesting the economy

is contiuing stronger than earlier thought as well as worry about the effect of lower interest rates on the value of the dollar. If the dollar drops more it could have implications not only for inflation in the country, but about the williningness of foreign investors to lend funds to the USA.

 

Additionally, other aspects suggest a more difficult turn of events. Transit L2 Sun and L3 Mercury will become conjunct natal L8 Saturn at 26° 47' Scorpio H5 while transit L4 Venus becomes transit conjunct natal Ketu at 17° 47' Libra H4. The Sun and Mercury will then enter Sagittarius H6 where they will become caught up in the mutal aspect of Jupiter at 6° Sagittarius H6 and Ketu at 6° Leo H2, which becomes exact on 18 December.

 

In other words, the financial markets will likely get a surprise to their disliking towards the middle of December and the volatile sentiments linger into the holidays.

 

Best wishes,

 

Thor

 

 

Bernanke clears way for Fed rate cut

 

 

 

 

 

 

 

 

 

By Krishna Guha in Washington and Daniel Pimlott in New York

Published: November 29 2007 16:16 | Last updated: November 30 2007 00:54

 

 

Ben Bernanke put the Federal Reserve on a path towards a December rate cut in a speech on Thursday night in which he said the relapse in financial markets had resulted in a “tightening in financial conditions” that had the potential to harm the real economy. The Fed chairman also said recent data on household spending had been “on the soft side” and warned that the combination of higher petrol prices, the weak housing market, tighter credit conditions and declines in stock prices seem likely to create some headwinds for the consumer in the months ahead. Mr Bernanke’s comments complete the repositioning of the US central bank begun a day earlier by his deputy, Don Kohn. Prior to that, hawkish comments by less-senior Fed officials had fuelled tension with the bond market, which was pricing in more rate cuts. Mr Bernanke said the Fed remains concerned about the risk to inflation from rising food, energy and import prices. In an apparent warning

to investors that a Fed rate cut on December 11 is not guaranteed, he said there was a lot of information still to come, including an important labour market report. But the thrust of his speech was that the Fed would cut rates providing three conditions are met: financial markets remain distressed, the risks to inflation do not increase and the remaining economic data do not come in stronger than expected. His comments came as new revised figures showed the US economy grew at its fastest rate in four years in the third quarter. An export surge fuelled by a weaker dollar and global growth more than offset the impact of the deepening slump in housing. Gross domestic product grew at 4.9 per cent in the quarter, almost twice the Federal Reserve’s estimate of the maximum sustainable rate for the US economy. However, a sharp rise in inventories reinforced fears of weak fourth-quarter growth. US Treasury bond yields fell sharply amid increased expectations

of interest rate cuts. The yield on the 10-year note fell 10bp to 3.94 per cent and on the two-year note 10.6bp to 3.04 per cent. Equity markets were volatile as the S & P 500 erased early gains to end fractionally up by 0.05 per cent. Prior to Mr Bernanke’s speech, futures markets were already pricing in a 25bp rate cut at the Fed’s meeting in December. The chance of a 50bp cut to 4 per cent was priced at 60 per cent, up from 47 per cent. Meanwhile, the White House released a bullish new set of economic forecasts, predicting the economy would grow at 2.7 per cent next year.The upward revision to growth came as fresh data on new home sales and house prices delivered yet more gloom. Torsten Slock, an economist at Deutsche Bank, said: “There are three sharks stalking the economy, the oil shark, the credit shark and the housing shark.”

 

Be a better pen pal. Text or chat with friends inside Mail. See how.

[Guest guest]

Dear friends,

 

Late last month I wrote about monetary policy in the USA in view of

the difficult transits around this time, notably the aspect of

transit Ketu in H2 to transit Jupiter in H6 (see below). I think

there is a good chance the Fed will NOT reduce interest rates as

most market participants have been expecting. Such an event would

disturb the financial market for some days, even weeks. Alternatively

some other adverse development will take place that disturbs the

market.

 

I would also like to note the transit of L2 Sun over natal L8 Saturn

in the SAMVA USA chart this week while L1 Moon will also be in H6 and

pass through the aspect of natal Rahu in H10. The other planets are

also not doing so well in transit:

- transit L3 Mercury is combust and also conjunt natal L8 Saturn.

- transit L10 Mars is badly placed in H12

- transit L4 Venus in Libra H4 is conjunct natal Ketu

- transit L8 Saturn in Leo H2 is aspected by Rahu in H10

 

Given all these adverse transits, the developments are expected to be

adverse for the USA, not just the financial market. However, it will

be especially interesting to follow the US currency, the dollar, for

the next few days while the Sun is conjunct L8 Saturn and Moon is in

H6 (Jupiter afflicts the Moon natally). The indications of L2 are

wealth and L1 are self. The royal planets are also key indicators of

the national currency. As they are adversely impacted by the planets

that afflict them natally, their indication are expected to not do so

well in the coming days.

 

Interestingly, today the news came that Iran has stopped accepting

dollars for oil, branding it an " unreliable currency " . This

is something Saddam Hussein tried to do before he was toppled. This

action by the Iranian government is not going to make the US

government very happy. However, there is little more that the US can

do, as the story also explains, having brought about onerous

international trade restrictions on Iran. We will see how the US

market fares for the remainder of the week, including the dollar. Up

until now, as predicted, things have been broadly improving.

 

Best wishes,

 

Thor

 

Oil Min: Iran Has Halted Oil Transactions In Dollars -AFP

TEHRAN (AFP)--Major crude producer Iran has completely stopped

carrying out its oil transactions in dollars, Oil Minister Gholam

Hossein Nozari said on Saturday, labeling the greenback

an " unreliable " currency. " At the moment selling oil in dollars has

been completely halted, in line with the policy of selling crude in

non-dollar currencies, " Nozari was quoted as saying by the ISNA news

agency. " The dollar is an unreliable currency, considering its

devaluation and the oil exporters' losses, " he added. The world's

fourth-largest oil exporter, Iran has massively reduced its

dependence on the dollar over the past year in the face of U.S.

pressures on its financial system. The U.S. has successfully

encouraged major European and Asian banks to cut their dealings with

Iran in a bid to make the Islamic republic give way on its

controversial nuclear program. Washington has also blacklisted major

Iranian banks for alleged support of terrorism and seeking nuclear

weapons, charges denied by Tehran. Iran has reduced its assets in

dollars held in foreign banks and urged OPEC to take collective

action to price oil in other currencies such as the euro, instead of

the U.S. currency which is used across the world at present. The

decline of the dollar, which has weakened considerably against the

euro and other currencies in the past 12 months, has affected the

revenues of OPEC members because most of them price and sell their

oil exports in the U.S. currency.

 

 

SAMVA , Cosmologer <cosmologer wrote:

>

> Dear friends,

>

> On December 11, 2007 the US central bank, the Federal Reserve, will

meet to discuss its interest rate setting, whether they should reduce

the Federal Funds rate (the policy rate). In recent days, high

ranking Fed officials, including Mr. Bernanke, have hinted at a rate

cut. Accordingly, the stock market has priced in a rate cut, and a

modest rally taken place in the stock market this week (see

accompanying news story from Bloomberg.com)

>

> Why Monetary Policy is so important in the USA

> The importance of monetary policy is seen in the placement of

Jupiter in the SAMVA USA chart. It seems to have a significant

bearing on US Monetary Policy due to its status as lord of the sixth

house in the chart. The sixth house rules financial stability, which

in turn is linked to the cost of debt in the country. A high or

rising interest rate makes the debt more expensive, placing a strain

financial stability. Likewise, a low or declining interest rate makes

it easier to carry debt and thus helps those in debt.

>

> Another point is that Jupiter is closely aspected by L1 Moon in the

SAMVA USA chart. The Moon is a general indicator of government

leadership (the cabinet), which suggests the importance of such

decisions for the government and the country as a whole. Morevoer,

Jupiter is widely conjunct L10 Mars in the chart, but Mars is a

general indicator of the executive branch of government. This adds to

the eminence of monetary policy, especially now that the 50 year rule

implies that the influence of the mutal aspect of Jupiter and Mars is

growing. The aspects of these powerful and important planets to

Jupiter, along with the aspect of L2 Sun to H1 MEP, as well as the

placement of weak L4 Venus, which rulse fixed assets, explain why the

cost of debt and financial stability are so important in the country.

The influence of L2 Sun on H7 MEP, which helps to explain the power

status of the country internationally, also helps explain why the

influence of US monetary

> policy is so great to the international financial community as a

whole.

>

> What the transits in December imply

> Finally, we must now consider the transit condition of Jupiter in

the month of December 2007. As we have discussed before, transit

Jupiter is now moving in the early degrees of its own MT sign,

Sagittarius. This suggests its strength is returning. However, soon

the Sun will begin to catch up with Jupiter, making it combust. This

influence will beging to be felt around 10 December. At the same

time, Jupiter will begin to feel the impact of transit Ketu in the

early degrees of Leo H2. This suggests to me that the decision

arrived at the monetary policy meeting of the Fed on December 11 will

not pacify the market. Rather it is likely to be linked to some more

volatility. This could likely be because the rate decline does not

materialise as the market now expects. The predictable effect on the

stock market would be that it would decline further. The fed may

react to recent information suggesting the economy is contiuing

stronger than earlier thought as well

> as worry about the effect of lower interest rates on the value of

the dollar. If the dollar drops more it could have implications not

only for inflation in the country, but about the williningness of

foreign investors to lend funds to the USA.

>

> Additionally, other aspects suggest a more difficult turn of

events. Transit L2 Sun and L3 Mercury will become conjunct natal L8

Saturn at 26° 47' Scorpio H5 while transit L4 Venus becomes transit

conjunct natal Ketu at 17° 47' Libra H4. The Sun and Mercury will

then enter Sagittarius H6 where they will become caught up in the

mutal aspect of Jupiter at 6° Sagittarius H6 and Ketu at 6° Leo H2,

which becomes exact on 18 December.

>

> In other words, the financial markets will likely get a surprise to

their disliking towards the middle of December and the volatile

sentiments linger into the holidays.

>

> Best wishes,

>

> Thor

>

> Bernanke clears way for Fed rate cut

> By Krishna Guha in Washington and Daniel Pimlott in New York

> Published: November 29 2007 16:16 | Last updated: November 30 2007

00:54

> Ben Bernanke put the Federal Reserve on a path towards a December

rate cut in a speech on Thursday night in which he said the relapse

in financial markets had resulted in a " tightening in financial

conditions " that had the potential to harm the real economy. The Fed

chairman also said recent data on household spending had been " on the

soft side " and warned that the combination of higher petrol prices,

the weak housing market, tighter credit conditions and declines in

stock prices seem likely to create some headwinds for the consumer in

the months ahead. Mr Bernanke's comments complete the repositioning

of the US central bank begun a day earlier by his deputy, Don Kohn.

Prior to that, hawkish comments by less-senior Fed officials had

fuelled tension with the bond market, which was pricing in more rate

cuts. Mr Bernanke said the Fed remains concerned about the risk to

inflation from rising food, energy and import prices. In an apparent

warning to

> investors that a Fed rate cut on December 11 is not guaranteed, he

said there was a lot of information still to come, including an

important labour market report. But the thrust of his speech was that

the Fed would cut rates providing three conditions are met: financial

markets remain distressed, the risks to inflation do not increase and

the remaining economic data do not come in stronger than expected.

His comments came as new revised figures showed the US economy grew

at its fastest rate in four years in the third quarter. An export

surge fuelled by a weaker dollar and global growth more than offset

the impact of the deepening slump in housing. Gross domestic product

grew at 4.9 per cent in the quarter, almost twice the Federal

Reserve's estimate of the maximum sustainable rate for the US

economy. However, a sharp rise in inventories reinforced fears of

weak fourth-quarter growth. US Treasury bond yields fell sharply amid

increased expectations of

> interest rate cuts. The yield on the 10-year note fell 10bp to

3.94 per cent and on the two-year note 10.6bp to 3.04 per cent.

Equity markets were volatile as the S & P 500 erased early gains to end

fractionally up by 0.05 per cent. Prior to Mr Bernanke's speech,

futures markets were already pricing in a 25bp rate cut at the Fed's

meeting in December. The chance of a 50bp cut to 4 per cent was

priced at 60 per cent, up from 47 per cent. Meanwhile, the White

House released a bullish new set of economic forecasts, predicting

the economy would grow at 2.7 per cent next year.The upward revision

to growth came as fresh data on new home sales and house prices

delivered yet more gloom. Torsten Slock, an economist at Deutsche

Bank, said: " There are three sharks stalking the economy, the oil

shark, the credit shark and the housing shark. "

>

>

>

____________________

______________

> Be a better pen pal.

> Text or chat with friends inside Mail. See how.

http://overview.mail./

>

[Guest guest]

Dear friends,

 

The Fed reduced interests rates by a small margin or 25 basis points,

to 4,25%.

 

With the transits turning quite adverse in terms of the SAMVA USA

chart, it strikes me that financial market participants will react

to this move as insufficient or that other adverse news will disturb

the stock market, which will be volatile in coming days. The transit

aspect of Jupiter and Ketu becomes exact on December 18.

 

We´ll soon see.

 

Best wishes,

 

Thor

 

Release December 11, 2007

For immediate release

 

The Federal Open Market Committee decided today to lower its target

for the federal funds rate 25 basis points to 4-1/4 percent.

 

Incoming information suggests that economic growth is slowing,

reflecting the intensification of the housing correction and some

softening in business and consumer spending. Moreover, strains in

financial markets have increased in recent weeks. Today's action,

combined with the policy actions taken earlier, should help promote

moderate growth over time.

 

Readings on core inflation have improved modestly this year, but

elevated energy and commodity prices, among other factors, may put

upward pressure on inflation. In this context, the Committee judges

that some inflation risks remain, and it will continue to monitor

inflation developments carefully.

 

Recent developments, including the deterioration in financial market

conditions, have increased the uncertainty surrounding the outlook

for economic growth and inflation. The Committee will continue to

assess the effects of financial and other developments on economic

prospects and will act as needed to foster price stability and

sustainable economic growth.

 

Voting for the FOMC monetary policy action were: Ben S. Bernanke,

Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans;

Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S.

Mishkin; William Poole; and Kevin M. Warsh. Voting against was Eric

S. Rosengren, who preferred to lower the target for the federal funds

rate by 50 basis points at this meeting.

 

In a related action, the Board of Governors unanimously approved a 25-

basis-point decrease in the discount rate to 4-3/4 percent. In

taking this action, the Board approved the requests submitted by the

Boards of Directors of the Federal Reserve Banks of New York,

Philadelphia, Cleveland, Richmond, Atlanta, Chicago, and St. Louis.

 

 

SAMVA , " cosmologer " <cosmologer wrote:

>

> Dear friends,

>

> Late last month I wrote about monetary policy in the USA in view of

> the difficult transits around this time, notably the aspect of

> transit Ketu in H2 to transit Jupiter in H6 (see below). I think

> there is a good chance the Fed will NOT reduce interest rates as

> most market participants have been expecting. Such an event would

> disturb the financial market for some days, even weeks.

Alternatively

> some other adverse development will take place that disturbs the

> market.

>

> I would also like to note the transit of L2 Sun over natal L8

Saturn

> in the SAMVA USA chart this week while L1 Moon will also be in H6

and

> pass through the aspect of natal Rahu in H10. The other planets are

> also not doing so well in transit:

> - transit L3 Mercury is combust and also conjunt natal L8 Saturn.

> - transit L10 Mars is badly placed in H12

> - transit L4 Venus in Libra H4 is conjunct natal Ketu

> - transit L8 Saturn in Leo H2 is aspected by Rahu in H10

>

> Given all these adverse transits, the developments are expected to

be

> adverse for the USA, not just the financial market. However, it

will

> be especially interesting to follow the US currency, the dollar,

for

> the next few days while the Sun is conjunct L8 Saturn and Moon is

in

> H6 (Jupiter afflicts the Moon natally). The indications of L2 are

> wealth and L1 are self. The royal planets are also key indicators

of

> the national currency. As they are adversely impacted by the

planets

> that afflict them natally, their indication are expected to not do

so

> well in the coming days.

>

> Interestingly, today the news came that Iran has stopped accepting

> dollars for oil, branding it an " unreliable currency " . This

> is something Saddam Hussein tried to do before he was toppled. This

> action by the Iranian government is not going to make the US

> government very happy. However, there is little more that the US

can

> do, as the story also explains, having brought about onerous

> international trade restrictions on Iran. We will see how the US

> market fares for the remainder of the week, including the dollar.

Up

> until now, as predicted, things have been broadly improving.

>

> Best wishes,

>

> Thor

>

> Oil Min: Iran Has Halted Oil Transactions In Dollars -AFP

> TEHRAN (AFP)--Major crude producer Iran has completely stopped

> carrying out its oil transactions in dollars, Oil Minister Gholam

> Hossein Nozari said on Saturday, labeling the greenback

> an " unreliable " currency. " At the moment selling oil in dollars has

> been completely halted, in line with the policy of selling crude in

> non-dollar currencies, " Nozari was quoted as saying by the ISNA

news

> agency. " The dollar is an unreliable currency, considering its

> devaluation and the oil exporters' losses, " he added. The world's

> fourth-largest oil exporter, Iran has massively reduced its

> dependence on the dollar over the past year in the face of U.S.

> pressures on its financial system. The U.S. has successfully

> encouraged major European and Asian banks to cut their dealings

with

> Iran in a bid to make the Islamic republic give way on its

> controversial nuclear program. Washington has also blacklisted

major

> Iranian banks for alleged support of terrorism and seeking nuclear

> weapons, charges denied by Tehran. Iran has reduced its assets in

> dollars held in foreign banks and urged OPEC to take collective

> action to price oil in other currencies such as the euro, instead

of

> the U.S. currency which is used across the world at present. The

> decline of the dollar, which has weakened considerably against the

> euro and other currencies in the past 12 months, has affected the

> revenues of OPEC members because most of them price and sell their

> oil exports in the U.S. currency.

>

>

> SAMVA , Cosmologer <cosmologer@> wrote:

> >

> > Dear friends,

> >

> > On December 11, 2007 the US central bank, the Federal Reserve,

will

> meet to discuss its interest rate setting, whether they should

reduce

> the Federal Funds rate (the policy rate). In recent days, high

> ranking Fed officials, including Mr. Bernanke, have hinted at a

rate

> cut. Accordingly, the stock market has priced in a rate cut, and a

> modest rally taken place in the stock market this week (see

> accompanying news story from Bloomberg.com)

> >

> > Why Monetary Policy is so important in the USA

> > The importance of monetary policy is seen in the placement of

> Jupiter in the SAMVA USA chart. It seems to have a significant

> bearing on US Monetary Policy due to its status as lord of the

sixth

> house in the chart. The sixth house rules financial stability,

which

> in turn is linked to the cost of debt in the country. A high or

> rising interest rate makes the debt more expensive, placing a

strain

> financial stability. Likewise, a low or declining interest rate

makes

> it easier to carry debt and thus helps those in debt.

> >

> > Another point is that Jupiter is closely aspected by L1 Moon in

the

> SAMVA USA chart. The Moon is a general indicator of government

> leadership (the cabinet), which suggests the importance of such

> decisions for the government and the country as a whole. Morevoer,

> Jupiter is widely conjunct L10 Mars in the chart, but Mars is a

> general indicator of the executive branch of government. This adds

to

> the eminence of monetary policy, especially now that the 50 year

rule

> implies that the influence of the mutal aspect of Jupiter and Mars

is

> growing. The aspects of these powerful and important planets to

> Jupiter, along with the aspect of L2 Sun to H1 MEP, as well as the

> placement of weak L4 Venus, which rulse fixed assets, explain why

the

> cost of debt and financial stability are so important in the

country.

> The influence of L2 Sun on H7 MEP, which helps to explain the power

> status of the country internationally, also helps explain why the

> influence of US monetary

> > policy is so great to the international financial community as a

> whole.

> >

> > What the transits in December imply

> > Finally, we must now consider the transit condition of Jupiter in

> the month of December 2007. As we have discussed before, transit

> Jupiter is now moving in the early degrees of its own MT sign,

> Sagittarius. This suggests its strength is returning. However, soon

> the Sun will begin to catch up with Jupiter, making it combust.

This

> influence will beging to be felt around 10 December. At the same

> time, Jupiter will begin to feel the impact of transit Ketu in the

> early degrees of Leo H2. This suggests to me that the decision

> arrived at the monetary policy meeting of the Fed on December 11

will

> not pacify the market. Rather it is likely to be linked to some

more

> volatility. This could likely be because the rate decline does not

> materialise as the market now expects. The predictable effect on

the

> stock market would be that it would decline further. The fed may

> react to recent information suggesting the economy is contiuing

> stronger than earlier thought as well

> > as worry about the effect of lower interest rates on the value

of

> the dollar. If the dollar drops more it could have implications not

> only for inflation in the country, but about the williningness of

> foreign investors to lend funds to the USA.

> >

> > Additionally, other aspects suggest a more difficult turn of

> events. Transit L2 Sun and L3 Mercury will become conjunct natal L8

> Saturn at 26° 47' Scorpio H5 while transit L4 Venus becomes transit

> conjunct natal Ketu at 17° 47' Libra H4. The Sun and Mercury will

> then enter Sagittarius H6 where they will become caught up in the

> mutal aspect of Jupiter at 6° Sagittarius H6 and Ketu at 6° Leo H2,

> which becomes exact on 18 December.

> >

> > In other words, the financial markets will likely get a surprise

to

> their disliking towards the middle of December and the volatile

> sentiments linger into the holidays.

> >

> > Best wishes,

> >

> > Thor

> >

> > Bernanke clears way for Fed rate cut

> > By Krishna Guha in Washington and Daniel Pimlott in New York

> > Published: November 29 2007 16:16 | Last updated: November 30

2007

> 00:54

> > Ben Bernanke put the Federal Reserve on a path towards a December

> rate cut in a speech on Thursday night in which he said the relapse

> in financial markets had resulted in a " tightening in financial

> conditions " that had the potential to harm the real economy. The

Fed

> chairman also said recent data on household spending had been " on

the

> soft side " and warned that the combination of higher petrol prices,

> the weak housing market, tighter credit conditions and declines in

> stock prices seem likely to create some headwinds for the consumer

in

> the months ahead. Mr Bernanke's comments complete the repositioning

> of the US central bank begun a day earlier by his deputy, Don Kohn.

> Prior to that, hawkish comments by less-senior Fed officials had

> fuelled tension with the bond market, which was pricing in more

rate

> cuts. Mr Bernanke said the Fed remains concerned about the risk to

> inflation from rising food, energy and import prices. In an

apparent

> warning to

> > investors that a Fed rate cut on December 11 is not guaranteed,

he

> said there was a lot of information still to come, including an

> important labour market report. But the thrust of his speech was

that

> the Fed would cut rates providing three conditions are met:

financial

> markets remain distressed, the risks to inflation do not increase

and

> the remaining economic data do not come in stronger than expected.

> His comments came as new revised figures showed the US economy grew

> at its fastest rate in four years in the third quarter. An export

> surge fuelled by a weaker dollar and global growth more than offset

> the impact of the deepening slump in housing. Gross domestic

product

> grew at 4.9 per cent in the quarter, almost twice the Federal

> Reserve's estimate of the maximum sustainable rate for the US

> economy. However, a sharp rise in inventories reinforced fears of

> weak fourth-quarter growth. US Treasury bond yields fell sharply

amid

> increased expectations of

> > interest rate cuts. The yield on the 10-year note fell 10bp to

> 3.94 per cent and on the two-year note 10.6bp to 3.04 per cent.

> Equity markets were volatile as the S & P 500 erased early gains to

end

> fractionally up by 0.05 per cent. Prior to Mr Bernanke's speech,

> futures markets were already pricing in a 25bp rate cut at the

Fed's

> meeting in December. The chance of a 50bp cut to 4 per cent was

> priced at 60 per cent, up from 47 per cent. Meanwhile, the White

> House released a bullish new set of economic forecasts, predicting

> the economy would grow at 2.7 per cent next year.The upward

revision

> to growth came as fresh data on new home sales and house prices

> delivered yet more gloom. Torsten Slock, an economist at Deutsche

> Bank, said: " There are three sharks stalking the economy, the oil

> shark, the credit shark and the housing shark. "

> >

> >

> >

>

____________________

> ______________

> > Be a better pen pal.

> > Text or chat with friends inside Mail. See how.

> http://overview.mail./

> >

>

[Guest guest]

Dear friends,

 

The Dow has dropped 240 points or 1,75% following the rate decision

announced by the Fed this afternoon. It seems the market is generally

reacting to the 25 basis point reduction as having been insufficient

(see news item below) Some banking/financial stocks are dropping much

more than that, like Goldman Sachs, Bear Sterns and Lehman Bros, who

are down by 5% - 6% in the past hour of trading.

 

In my prediction I didn´t foresee this middle outcome, that the Fed

would reduce the interest rate but by such a small amount that the

market would become disapointed anyway. In any event, the stock

market is certainly behaving as expected, reacting poorly to the

decision.

 

Best wishes,

 

Thor

 

U.S. Stocks Fall After Fed Cuts Benchmark Rate by Quarter Point

By Eric Martin

 

Dec. 11 (Bloomberg) -- U.S. stocks dropped the most in two weeks as

investors speculated the Federal Reserve's quarter- point interest-

rate cut will fail to prevent a recession.

 

Bank of America Corp. and Citigroup Inc. led financial shares to the

biggest drop in the Standard & Poor's 500 Index and bonds rallied

after the Fed said the housing slump intensified. Washington Mutual

Inc., the largest U.S. savings and loan, declined the most in a month

after saying it plans to write down the value of its home-lending

unit. Freddie Mac, the second-biggest mortgage-finance company, fell

for a third day after forecasting a wider loss than analysts had

estimated.

 

The S & P 500 lost 23.52, or 1.6 percent, to 1,492.44 as of 2:41 p.m.

in New York. The Dow Jones Industrial Average retreated 200.86, or

1.5 percent, to 13,526.17. The Nasdaq Composite Index decreased

39.31, or 1.5 percent, to 2,679.64. Almost six stocks declined for

every one that rose on the New York Stock Exchange.

 

``They're thinking that the Fed doesn't get it,'' said Jeffrey

Kleintop, who helps oversee about $163 billion as chief market

strategist at LPL Financial Services in Boston. Investors are

concerned ``these little baby steps are not going to be sufficient to

avoid a recession.''

 

 

 

SAMVA , " cosmologer " <cosmologer wrote:

>

> Dear friends,

>

> The Fed reduced interests rates by a small margin or 25 basis

points,

> to 4,25%.

>

> With the transits turning quite adverse in terms of the SAMVA USA

> chart, it strikes me that financial market participants will react

> to this move as insufficient or that other adverse news will

disturb

> the stock market, which will be volatile in coming days. The

transit

> aspect of Jupiter and Ketu becomes exact on December 18.

>

> We´ll soon see.

>

> Best wishes,

>

> Thor

>

> Release December 11, 2007

> For immediate release

>

> The Federal Open Market Committee decided today to lower its target

> for the federal funds rate 25 basis points to 4-1/4 percent.

>

> Incoming information suggests that economic growth is slowing,

> reflecting the intensification of the housing correction and some

> softening in business and consumer spending. Moreover, strains in

> financial markets have increased in recent weeks. Today's action,

> combined with the policy actions taken earlier, should help promote

> moderate growth over time.

>

> Readings on core inflation have improved modestly this year, but

> elevated energy and commodity prices, among other factors, may put

> upward pressure on inflation. In this context, the Committee

judges

> that some inflation risks remain, and it will continue to monitor

> inflation developments carefully.

>

> Recent developments, including the deterioration in financial

market

> conditions, have increased the uncertainty surrounding the outlook

> for economic growth and inflation. The Committee will continue to

> assess the effects of financial and other developments on economic

> prospects and will act as needed to foster price stability and

> sustainable economic growth.

>

> Voting for the FOMC monetary policy action were: Ben S. Bernanke,

> Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans;

> Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Frederic S.

> Mishkin; William Poole; and Kevin M. Warsh. Voting against was

Eric

> S. Rosengren, who preferred to lower the target for the federal

funds

> rate by 50 basis points at this meeting.

>

> In a related action, the Board of Governors unanimously approved a

25-

> basis-point decrease in the discount rate to 4-3/4 percent. In

> taking this action, the Board approved the requests submitted by

the

> Boards of Directors of the Federal Reserve Banks of New York,

> Philadelphia, Cleveland, Richmond, Atlanta, Chicago, and St. Louis.

>

>

> SAMVA , " cosmologer " <cosmologer@> wrote:

> >

> > Dear friends,

> >

> > Late last month I wrote about monetary policy in the USA in view

of

> > the difficult transits around this time, notably the aspect of

> > transit Ketu in H2 to transit Jupiter in H6 (see below). I think

> > there is a good chance the Fed will NOT reduce interest rates as

> > most market participants have been expecting. Such an event would

> > disturb the financial market for some days, even weeks.

> Alternatively

> > some other adverse development will take place that disturbs the

> > market.

> >

> > I would also like to note the transit of L2 Sun over natal L8

> Saturn

> > in the SAMVA USA chart this week while L1 Moon will also be in H6

> and

> > pass through the aspect of natal Rahu in H10. The other planets

are

> > also not doing so well in transit:

> > - transit L3 Mercury is combust and also conjunt natal L8 Saturn.

> > - transit L10 Mars is badly placed in H12

> > - transit L4 Venus in Libra H4 is conjunct natal Ketu

> > - transit L8 Saturn in Leo H2 is aspected by Rahu in H10

> >

> > Given all these adverse transits, the developments are expected

to

> be

> > adverse for the USA, not just the financial market. However, it

> will

> > be especially interesting to follow the US currency, the dollar,

> for

> > the next few days while the Sun is conjunct L8 Saturn and Moon is

> in

> > H6 (Jupiter afflicts the Moon natally). The indications of L2 are

> > wealth and L1 are self. The royal planets are also key indicators

> of

> > the national currency. As they are adversely impacted by the

> planets

> > that afflict them natally, their indication are expected to not

do

> so

> > well in the coming days.

> >

> > Interestingly, today the news came that Iran has stopped

accepting

> > dollars for oil, branding it an " unreliable currency " . This

> > is something Saddam Hussein tried to do before he was toppled.

This

> > action by the Iranian government is not going to make the US

> > government very happy. However, there is little more that the US

> can

> > do, as the story also explains, having brought about onerous

> > international trade restrictions on Iran. We will see how the US

> > market fares for the remainder of the week, including the dollar.

> Up

> > until now, as predicted, things have been broadly improving.

> >

> > Best wishes,

> >

> > Thor

> >

> > Oil Min: Iran Has Halted Oil Transactions In Dollars -AFP

> > TEHRAN (AFP)--Major crude producer Iran has completely stopped

> > carrying out its oil transactions in dollars, Oil Minister Gholam

> > Hossein Nozari said on Saturday, labeling the greenback

> > an " unreliable " currency. " At the moment selling oil in dollars

has

> > been completely halted, in line with the policy of selling crude

in

> > non-dollar currencies, " Nozari was quoted as saying by the ISNA

> news

> > agency. " The dollar is an unreliable currency, considering its

> > devaluation and the oil exporters' losses, " he added. The world's

> > fourth-largest oil exporter, Iran has massively reduced its

> > dependence on the dollar over the past year in the face of U.S.

> > pressures on its financial system. The U.S. has successfully

> > encouraged major European and Asian banks to cut their dealings

> with

> > Iran in a bid to make the Islamic republic give way on its

> > controversial nuclear program. Washington has also blacklisted

> major

> > Iranian banks for alleged support of terrorism and seeking

nuclear

> > weapons, charges denied by Tehran. Iran has reduced its assets in

> > dollars held in foreign banks and urged OPEC to take collective

> > action to price oil in other currencies such as the euro, instead

> of

> > the U.S. currency which is used across the world at present. The

> > decline of the dollar, which has weakened considerably against

the

> > euro and other currencies in the past 12 months, has affected the

> > revenues of OPEC members because most of them price and sell

their

> > oil exports in the U.S. currency.

> >

> >

> > SAMVA , Cosmologer <cosmologer@> wrote:

> > >

> > > Dear friends,

> > >

> > > On December 11, 2007 the US central bank, the Federal Reserve,

> will

> > meet to discuss its interest rate setting, whether they should

> reduce

> > the Federal Funds rate (the policy rate). In recent days, high

> > ranking Fed officials, including Mr. Bernanke, have hinted at a

> rate

> > cut. Accordingly, the stock market has priced in a rate cut, and

a

> > modest rally taken place in the stock market this week (see

> > accompanying news story from Bloomberg.com)

> > >

> > > Why Monetary Policy is so important in the USA

> > > The importance of monetary policy is seen in the placement of

> > Jupiter in the SAMVA USA chart. It seems to have a significant

> > bearing on US Monetary Policy due to its status as lord of the

> sixth

> > house in the chart. The sixth house rules financial stability,

> which

> > in turn is linked to the cost of debt in the country. A high or

> > rising interest rate makes the debt more expensive, placing a

> strain

> > financial stability. Likewise, a low or declining interest rate

> makes

> > it easier to carry debt and thus helps those in debt.

> > >

> > > Another point is that Jupiter is closely aspected by L1 Moon in

> the

> > SAMVA USA chart. The Moon is a general indicator of government

> > leadership (the cabinet), which suggests the importance of such

> > decisions for the government and the country as a whole.

Morevoer,

> > Jupiter is widely conjunct L10 Mars in the chart, but Mars is a

> > general indicator of the executive branch of government. This

adds

> to

> > the eminence of monetary policy, especially now that the 50 year

> rule

> > implies that the influence of the mutal aspect of Jupiter and

Mars

> is

> > growing. The aspects of these powerful and important planets to

> > Jupiter, along with the aspect of L2 Sun to H1 MEP, as well as

the

> > placement of weak L4 Venus, which rulse fixed assets, explain why

> the

> > cost of debt and financial stability are so important in the

> country.

> > The influence of L2 Sun on H7 MEP, which helps to explain the

power

> > status of the country internationally, also helps explain why the

> > influence of US monetary

> > > policy is so great to the international financial community as

a

> > whole.

> > >

> > > What the transits in December imply

> > > Finally, we must now consider the transit condition of Jupiter

in

> > the month of December 2007. As we have discussed before, transit

> > Jupiter is now moving in the early degrees of its own MT sign,

> > Sagittarius. This suggests its strength is returning. However,

soon

> > the Sun will begin to catch up with Jupiter, making it combust.

> This

> > influence will beging to be felt around 10 December. At the same

> > time, Jupiter will begin to feel the impact of transit Ketu in

the

> > early degrees of Leo H2. This suggests to me that the decision

> > arrived at the monetary policy meeting of the Fed on December 11

> will

> > not pacify the market. Rather it is likely to be linked to some

> more

> > volatility. This could likely be because the rate decline does

not

> > materialise as the market now expects. The predictable effect on

> the

> > stock market would be that it would decline further. The fed may

> > react to recent information suggesting the economy is contiuing

> > stronger than earlier thought as well

> > > as worry about the effect of lower interest rates on the value

> of

> > the dollar. If the dollar drops more it could have implications

not

> > only for inflation in the country, but about the williningness of

> > foreign investors to lend funds to the USA.

> > >

> > > Additionally, other aspects suggest a more difficult turn of

> > events. Transit L2 Sun and L3 Mercury will become conjunct natal

L8

> > Saturn at 26° 47' Scorpio H5 while transit L4 Venus becomes

transit

> > conjunct natal Ketu at 17° 47' Libra H4. The Sun and Mercury will

> > then enter Sagittarius H6 where they will become caught up in the

> > mutal aspect of Jupiter at 6° Sagittarius H6 and Ketu at 6° Leo

H2,

> > which becomes exact on 18 December.

> > >

> > > In other words, the financial markets will likely get a

surprise

> to

> > their disliking towards the middle of December and the volatile

> > sentiments linger into the holidays.

> > >

> > > Best wishes,

> > >

> > > Thor

> > >

> > > Bernanke clears way for Fed rate cut

> > > By Krishna Guha in Washington and Daniel Pimlott in New York

> > > Published: November 29 2007 16:16 | Last updated: November 30

> 2007

> > 00:54

> > > Ben Bernanke put the Federal Reserve on a path towards a

December

> > rate cut in a speech on Thursday night in which he said the

relapse

> > in financial markets had resulted in a " tightening in financial

> > conditions " that had the potential to harm the real economy. The

> Fed

> > chairman also said recent data on household spending had been " on

> the

> > soft side " and warned that the combination of higher petrol

prices,

> > the weak housing market, tighter credit conditions and declines

in

> > stock prices seem likely to create some headwinds for the

consumer

> in

> > the months ahead. Mr Bernanke's comments complete the

repositioning

> > of the US central bank begun a day earlier by his deputy, Don

Kohn.

> > Prior to that, hawkish comments by less-senior Fed officials had

> > fuelled tension with the bond market, which was pricing in more

> rate

> > cuts. Mr Bernanke said the Fed remains concerned about the risk

to

> > inflation from rising food, energy and import prices. In an

> apparent

> > warning to

> > > investors that a Fed rate cut on December 11 is not

guaranteed,

> he

> > said there was a lot of information still to come, including an

> > important labour market report. But the thrust of his speech was

> that

> > the Fed would cut rates providing three conditions are met:

> financial

> > markets remain distressed, the risks to inflation do not increase

> and

> > the remaining economic data do not come in stronger than

expected.

> > His comments came as new revised figures showed the US economy

grew

> > at its fastest rate in four years in the third quarter. An export

> > surge fuelled by a weaker dollar and global growth more than

offset

> > the impact of the deepening slump in housing. Gross domestic

> product

> > grew at 4.9 per cent in the quarter, almost twice the Federal

> > Reserve's estimate of the maximum sustainable rate for the US

> > economy. However, a sharp rise in inventories reinforced fears of

> > weak fourth-quarter growth. US Treasury bond yields fell sharply

> amid

> > increased expectations of

> > > interest rate cuts. The yield on the 10-year note fell 10bp to

> > 3.94 per cent and on the two-year note 10.6bp to 3.04 per cent.

> > Equity markets were volatile as the S & P 500 erased early gains to

> end

> > fractionally up by 0.05 per cent. Prior to Mr Bernanke's speech,

> > futures markets were already pricing in a 25bp rate cut at the

> Fed's

> > meeting in December. The chance of a 50bp cut to 4 per cent was

> > priced at 60 per cent, up from 47 per cent. Meanwhile, the White

> > House released a bullish new set of economic forecasts,

predicting

> > the economy would grow at 2.7 per cent next year.The upward

> revision

> > to growth came as fresh data on new home sales and house prices

> > delivered yet more gloom. Torsten Slock, an economist at Deutsche

> > Bank, said: " There are three sharks stalking the economy, the oil

> > shark, the credit shark and the housing shark. "

> > >

> > >

> > >

> >

>

____________________

> > ______________

> > > Be a better pen pal.

> > > Text or chat with friends inside Mail. See how.

> > http://overview.mail./

> > >

> >

>