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News > Mundane Astrology  > DJIA Drops Nearly 900 Points Nov. 19 - 20, 2008

DJIA Drops Nearly 900 Points Nov. 19 - 20, 2008

DJIA Drops Nearly 900 Points Nov. 19 - 20, 2008 | Mundane Astrology
by Mark Lerner

Thursday Night, Nov. 20, 2008: The Second Wave Crash in the economy -- that I predicted in my September 18 financial astrology article in the Top Story section -- has come to pass, especially with the DJIA losing another nearly 900 points during the last two trading sessions. Tomorrow brings the third and final Jupiter-Saturn trine in earth signs during 2008 as well as the monthly Moon-Saturn union in Virgo.

Doom and gloom vibrations are certainly still in the financial atmosphere as the three main USA auto companies pleaded for a giant bailout in Washington, D.C. this week and as banking titan Citigroup has seen its stock price plummet following its announcement of over 50,000 employee layoffs in the coming weeks.

Will Friday November 21 -- with the Sun at the infamous 30-degree Scorpio zodiacal placement -- see more Black Hole type energy in our national fiscal soap opera? Or will the remaining bulls that are still "playing the market" try to drive the DJIA up again to regain recent losses?

Stay tuned to this web channel for more late-breaking astrology news.

Dateline: Tuesday October 14, 2008, but Updated Monday Oct. 27 and Tuesday Oct. 28: Yesterday, the DJIA soared 937 points (an all-time high in points), but volume was not that high, bond markets were closed, and the jury was out about whether this would be a Johnny-one-note rise (to regain recent losses) or the beginning of a true bear market rally. See Wed. Oct. 15, Mon. Oct. 20, Wed. Oct. 22, Mon. Oct. 27 and Tue. Oct. 28 updates near close of this article.

[Note: See two special financial features in our Top Story area for a variety of charts and very important background information on the lead-up to the recent financial crash-panic and the harrowing days while it was happening in its greatest intensity. Also -- take a look at my special feature on America going off the gold standard on August 15, 1971 as the lead story in the News and Newsmakers section.]

Today -- under a Full Moon united with the most distant planet in our solar system (Eris) and with the Moon in Aries making its monthly return to its placement in the NYSE horoscope from May 17, 1792 -- the DJIA dashed out of the starting gate (over 300 points higher), but then settled lower to end the day down 77 points leaving the major American index at 9310.99.

What was somewhat surprising was that this lack of temporary bullish power in the DJIA occurred (a) following a 14% rise in the Nikkei (Japan's main stock market) in early Tuesday trading and (b) after the twin announcements this morning by President Bush and U.S. Treasury Secretary Paulson that we are going to follow the lead of Prime Minister Gordon Brown of the UK and take direct equity positions (with preferred stocks and warrants, etc) in 9 major U.S. banks (as well as many others) to the tune of $250 billion in cash injections.

However, while Prime Minister Brown was bold and clear when he initiated his policy last Wednesday and while European governments were preparing to support their banks to around $2+ trillion, we were still the Johnny-come-lately to all these credit unfreezing plans and our $250 billion may be inadequate for the overall task.

After all, many crucial questions remain.

(a) Isn't this so-called capital injection of cash into banks really the same thing that is known as nationalization in many other countries? Of course, our way around this concept is that we are only doing this temporarily and in the hope that the government (really the U.S. taxpayers) can make some kind of return on these loans to banks and then withdraw from owning preferred shares in the banks down the road a bit. Nevertheless, this gigantic and radical move (a government owning shares in a private bank) is one of the hallmark features of socialist governments and we should be honest about what it is.

(b) Aren't we now rewarding all the same bank firms and bankers-investors-business managers who got us into this financial mess (of tens of trillions of dollars -- or is it hundreds of trillions of dollars? -- in unclearly-valued mortgage-backed-securities, CDOs, SIVs, credit default swaps, etc) in the first place?

While a main goal of injecting $250 billion in cash into these troubled financial institutions is laudable -- to unfreeze credit offered by the banks and to unfreeze inter-bank lending -- what monitoring devices are in place to make sure these banks will really start a strong wave of lending rather than use the billions in cash to once again invest that money unwisely or come up with new, fraudulent and illegal schemes to multiply that money?

(c) This leads to another very crucial question and let me state the words of CEO Lynn Tilton of Patriarch Partners, LLC (writing a full-page ad in today's Business Section of The New York Times): "Until the depth of losses at banks can be quantified, there exists no mechanism to measure the magnitude of Fed funds necessary to establish capital bases sufficient to loosen credit."

Isn't this why Treasury Secretary Paulson sounded concerned and worried this morning when he warned the banks he was infusing with billions in cash "not to hoard, but to deploy the money"?

Why would he say this? Personally, I would have never thought that the banks getting this royal treatment would actually not make available new waves of credit to the public. However, it could very well be true that because the "Weapons of Mass Financial Destruction" (term first used by Warren Buffet to describe all the toxic debts in the tens and hundreds of trillions of dollars out there) have no known value, these mega-banks and other banks receiving billions of dollars might choose to sit on that money while they scramble to white-wash their balance sheets or do whatever is necessary to rid themselves of the toxicity of having a nightmarish quantity of debt on their accounting books.

(d) How is it possible that European governments are offering about $2+ trillion to their banks while we are offering "only" $250 billion (one-tenth of what Europe is offering) when the overall European economy is fairly equivalent to our American economy? There is something wrong or fishy here.

While it is true that using $250 billion from the Bailout money authorized and approved by Congress and signed by President Bush means there is still another $450 billion remaining that can be used to buy up bad debt from banks and potentially turn those debts into assets in a couple of years, Henry Paulson and Ben Bernanke are the same two guys who originally went to Congress around a month ago with an urgent 3-page proposal to be given $700 billion with no oversight by Congress for the first 6 months! Eventually, that 3-page, unclearly-thought-out document turned into an over 440-page Congressional bill mainly because the original proposal was so vague, risky and ill-conceived in nature.

(e) What about the enormous inflationary movement these giant bailouts will create in the months and years to come? You can't keep the printing presses at the U.S. treasury and at treasury departments all over the world going at 160-mph 24/7 and accelerating for days and weeks on end to supposedly solve this financial crisis and not wind up with some kind of hyper-inflationary spiral that is off the charts.

An important article appeared today on the MarketWatch website that quoted key people at Merrill Lynch suggesting that all this inflation will bring gold to at least $1500 an ounce and oil back up to $150 a barrel perhaps next year. Of course, gold bugs have been waiting for a steep new rise in the price of an ounce of gold ever since March 17, 2008 when gold soared to $134 an ounce and then declined following the Federal Reserve's shocking bailout of the investment firm of Bear Stearns during a tumultuous weekend in the middle of March.

Not only is the U.S. dollar susceptible to a great future downturn due to inflation, but other currencies (like the Pound Sterling, Euro and Yen) could plummet as well as the extraordinary amount of paper currencies flood banks and world markets.

You will see many financial talking heads on television trying to make a case that we are in a deflationary monetary cycle, but that's not true. What has happened is that we have had speculative bubbles in the housing market, the oil market and the commodities market and their collapses have brought the prices of homes, oil-gasoline and commodities downward to much more reasonable and sensible levels. That's not deflation -- that's living within our means and paying prices that are more normal and rational.

In the meantime, we will see higher prices coming soon for home heating oil this winter and -- I can guarantee you this -- if Barack Obama wins the presidential election, prices at the gas pumps will go up substantially in November-December because oil companies don't want him to be president and will be fearful that he will try to introduce legislation to enact windfall profits taxation against them.

And if oil prices go up again a lot -- and what mechanism has been created to stop a new speculative bubble happening in oil? -- then trucking and airplane transportation costs will rise accordingly and food prices will rise or soar.

As I have reported in my other financial stories in the past few weeks, Jupiter and Neptune will meet three times next year in Aquarius. This kind of Jupiter-Neptune alliance can always represent a Big (Jupiter is the largest planet) inflationary wave (Neptune rules inflation and waves-rhythms-cycles that are large-scale and usually invisible and hard-to-decipher).

Jupiter and Neptune met together in early Sagittarius twice before and once just after President Nixon took America off the gold standard (August 15, 1971). And America was suffering through a very bad patch of inflation due to the enormous costs involved in running the Vietnam War. Now we are plagued with enormous costs -- for so many years -- in running the Iraq and Afghanistan Wars.

Once we hit the severe recession and bear market of 1973-1974, Saturn squared Pluto in the sky from early Cancer to early Libra. Three 90-degree, frictional alignments took place during September and October 1973, and May 1974.

As we look into the future to see if a bear market can be sustained for several years, we see that November 2009, January and August 2010 will bring the same type of square between Saturn and Pluto which occurred in 1973-74 and that could coincide with some of the darker and more disturbing days of a new, future bear market of unparalleled strength because Pluto will then be opposing America's Venus and Jupiter -- something that has never happened before in our history as a republic.

In closing for now, be aware that Mercury (a chief ruling planet of business-trade in general, communications, transportation, and market indices) is virtually motionless at 8 degrees of Libra for the next couple of days and will officially shift from reverse to direct at 1:07PM PDT tomorrow (Wednesday October 15, 2008).

The Sun makes its annual union with the NYSE Jupiter (signifying a big event, major news story or large movement in the DJIA) as the exchange closes on Oct. 15 while that solar placement also precisely ignites the Mercury station retrograde placement at 23 Libra from September 24!

The transiting Moon in Taurus unites with the NYSE Venus on Oct. 15 and the NYSE Sun by late Thursday Oct. 16 after trading hours are over in NYC.

In general, all of these alignments and cycles together appear to represent the potential for a new rally by the DJIA except for the question as to whether Mercury motionless keeps the DJIA from moving very much at all.

Update Wed. Oct. 15: It is almost at the close of trading on the NYSE and it is clear that the only rally of this week (so far) was Monday's rise of 937 points. And that "rally" was really more of an under-the-radar-screen desperate grab by a small percentage of the investment community to make back lost money.

Even though the Sun is crossing over the NYSE Jupiter today, as I explained a few paragraphs above this solar illumination is also precisely (no orb!) striking Mercury's station point in the zodiac (23 degrees) from September 24.

This unusual Sun-Jupiter hook-up (representing something BIG -- in this case a gigantic loss in the DJIA) -- along with today's Mercury shift from retrograde to direct in just a few minutes (1:07PM PDT) is dragging down the NYSE.

Another few reasons for today's plummeting DJIA are: (a) Mortgage rates are going up rather than down as banks are more cautious about lending out money; (b) The 1.2% drop in retail sales from September -- almost double what was anticipated -- revealing a slowing economy; (c) Ben Bernanke -- the Fed Chairman -- giving another negative report on the long-term financial problems ahead. Remember that his natal Sun-Jupiter polarity at 21+ Sagittarius-Gemini is exactly igniting America's Mars (the red planet = to losses and debts in financial astrology); (d) The realization is now sinking in about the lengthy economic recession arriving in the months ahead; (e) Renewed worries that the $700 billion bailout won't nearly be enough even while the U.S. Treasury is hinting at $1.5 trillion that will be used to back three years of major bank debt and $500 billion more to secure non-interest bearing bank accounts (usually opened by small businesses in order to meet payroll costs).

Some commentators on CNBC about one hour ago were saying that it's ridiculous to give billions of dollars right now to banks like Wells Fargo (doing rather well compared to many others and which did not want bailout money from the U.S. Treasury) while smaller banks around the nation are not receiving enough to help in our smaller communities. Not enough capital in smaller regional banks hurts people in small towns and many small business owners who don't invest in or trust larger, big-city banks.

There is also enormous anger within the public about banking firms and bankers receiving a ton of money when these firms and their executives were the engineers of the financial fraud and crisis that has just brought down the stock market -- here and abroad.

Many people also don't believe the $250 billion injection of cash into banks (as reported by U.S. Treasury Secretary Paulson on Tuesday) will wind up "trickling down" and becoming available as credit to regular folks. Thus, there is much skepticism about giving so much money to the perpetrators of the financial crime in the first place.

Another point here is that we have not yet reached the real floor-bottom of the bear market. Instead of the DJIA soaring this past Monday -- due primarily to very anxious people desperate to push up the DJIA to make back some money -- it probably would have been much better for the DJIA to have continued its downward movement in order to reach a floor-bottom foundation.

Right now, the DJIA has lost 733.08 for the day -- bringing the DJIA back down to 8577.91.

While tomorrow brings a continuation of Taurus Moon -- and the NYSE has a Taurus Sun (usually -- in regular circumstances -- implying a bullish momentum) -- if you read my September 18 financial feature in the Top Stories section, you will remind yourself of the likelihood of a deeper crash move during the second half of October. You should go over that important article asap -- so that you can see how we are now in a kind of resonant wave crash in the second half of October 2008 that is an astrological transiting time-echo from the Great Stock Market Crash of October 24 - 29, 1929.

Update Monday Oct. 20: With transiting Jupiter making an awkward, off-kilter 150-degree to Uranus in the NYSE chart from May 17, 1792 (exact on Sunday Oct. 19) and the transiting Sun making its annual crossing over Neptune in the NYSE chart today, the odds are strong that surprises, shock waves and topsy-turvy conditions will continue striking the DJIA and global financial markets. There's plenty of deception, confusion and nebulosity present today as well (the shadow side of Neptune) -- so don't believe everything you hear and see. The monetary rumor mill may be on overdrive right now.

By the end of this week, both Chiron (Oct. 24) and Pallas (Oct. 25) will make stations -- with Chiron turning direct in Aquarius while Pallas is turning retrograde in Gemini. The end-of-the-business-week Chiron station can send worldwide investors into another twilight zone of deep uncertainty.

Between now and then, I will watch what's going on and report back when fairly dynamic shifts and changes are going on. In the meantime, please continue to read my two special features on the financial crisis in the Top Stories area of the website.

Update Wednesday Night Oct. 22: After rising 200+ points on Monday, the DJIA reversed itself yesterday by an equivalent amount and then dropped another 514 points today. This occurred after a gloomy trading day in Asia, and the DJIA stands at 8519.21 -- still seeking a floor or bottom to this bear market.

However, investors are now apparently reacting to the overall, national and international bad economic long-term news rather than to the panic-selling of the previous couple of weeks. In addition, the Sun has just shifted into Scorpio this evening and this brings us toward the last 7 trading days in October -- a time-period 79 years ago which led to the Great Stock Market Crash of 1929 and the start of a world-wide depression.

Hopefully, with knowledge, wisdom and hindsight supporting our collective financial structures and foundations, we won't have anything like what occurred nearly 8 full decades ago. Nevertheless, my Top Story feature -- dated Sept. 18 -- clearly shows the potential of what can occur as we move from the end of this week into next week (when the Sun, Mars and Mercury all simultaneously return to their basic zodiacal placements from the Oct. 24 - 29, 1929 Stock Market Crash charts).

The bursting of three bubbles -- housing (the biggest by far and connected to the hundreds of trillions of dollars of fraudulent "Weapons of Mass Financial Destruction"), commodities and oil -- has become the unholy trinity which made the world's economic house of cards collapse before our stunned eyes over the last month or so. But the handwriting had been on the wall at least 2 and 1/2 years ago when I first wrote my extensive, fact-filled article about the potential for a massive banking and stock market crash, and laid out the astrological reasons why.

Beyond the nearly simultaneous stations of Chiron and Pallas this Friday and Saturday, and next Tuesday's powerful Scorpio New Moon (all helping to trigger the 1929 financial debacle all over again in some form now), slowly moving Saturn is heading for its first rendezvous in 29+ years with the NYSE's natal Mars (18+ Virgo) during the Halloween weekend of Oct. 31 - Nov. 2.

Can a Saturn crossing of the NYSE Mars possibly be bullish, upbeat and a cause for joy? That is extremely doubtful. To make matters more skittish, worrisome and unpredictable, Saturn makes its first of five oppositions over the next two years to Uranus in the sky on November 4 (Election Day). And -- if you examine an ephemeris closely -- you will see that transiting Uranus in Pisces will stay within 2 minutes of arc of an opposition to the NYSE Mars from mid-November to mid-December -- an alignment that can signify more explosive news, shock waves, losses and debts across the board.

Therefore, as the DJIA seeks a floor-bottom from which to eventually rally down the road, not only do the next 7 trading days look disturbing, but the weeks afterward appear equally contentious and bearish.

Many people have taken their money out of stocks and with good reason. Even though there have been days with a rising DJIA (over 900 points on Columbus Day when a large percentage of investors were not focused on the stock market), the fact that hundreds of trillions of dollars of fraudulent paper derivatives-agreements-debts-bets-schemes (whatever you want to call them) are still out there causing financial radioactive fallout around the globe is having this nasty, disastrous effect on financial barometers world-wide.

Gold, silver and platinum have all been stung -- mostly because hedge funds are dumping huge investments in these commodities (although gold and silver are primarily currencies) and millions of people who ran for cover into gold as a safe-haven a couple of weeks ago are selling frantically because they need to pay overdue bills.

But if you focus just on gold, you find that (a) banks are hoarding it in gigantic quantities; (b) mints are either way behind schedule in making gold bullion coins available or stopping their production of them entirely; (c) thousands of coin shops world-wide are reporting the absence of gold and silver bullion coins.

Thus, there is an awareness by "the powers that be" (the SuperRich, Plutocrats, Illuminati, etc) that gold will eventually be the "last man standing" in the realm of currency salvation. This is why gold bugs like Jim Sinclair still hold to their belief that an ounce of gold will rise to $1200 and eventually $1650 (within the next 2+ years). He may be behind schedule in his prediction about gold right now, but once the hyper-inflationary actions taken by the Federal Reserve and other Western central banks are recognized for what they are in total, then gold and silver will be rising in price once again.

With the price of an ounce of gold hovering close to $725 now and an ounce of silver down around $9.25, we are nearing one of the most enormous buying opportunities in these two precious metals in a very long time. But unless you are ready to be very patient, it is extremely hard to obtain gold and silver bullion coins. Of course, you can still invest in ETFs (Exchange Traded Funds) or invest in mining stocks -- although many of these have taken a beating recently as well.

Asian markets are again being pummeled overnight in Tokyo and Hong Kong, so it will be up to the NYSE and DJIA to provide some measure of stability as Thursday Oct. 23 gets underway here in America. On the other hand, if the first full day of Solar Scorpio brings another drop in the DJIA, who knows whether we will start looking for a floor-bottom in the 7000-range fairly soon.

Right now -- 9:50PM PDT on Wed. Oct. 22 -- the DJIA Futures are up 134 points. This overnight "forecasting tool" usually can give the savvy investor a fairly decent sense of where the NYSE will open the next morning. The big question is whether this possible rally and rise can be sustained throughout the trading session tomorrow in New York City as the transiting Moon shifts from fiery, fixed and regal Leo to earthy, mutable and anxiety-prone Virgo. [Note: The Moon made this same switch from Oct. 26 - 28, 1929 when America began to realize that the NYSE was crashing.]

Be aware that OPEC is preparing for an emergency meeting this Friday (the day of a Moon-Saturn union in the sky) when that key oil organization will probably announce a scaling back of oil production (in order to prop up the falling price of a barrel of crude oil). This would be totally in keeping with the monthly conjunction of the Moon and Saturn (limits; restrictions) and OPEC's actions can then re-trigger more bearish sentiment on Wall Street.

Update Monday Oct. 27: As I explained in my special feature -- dated Sept. 18 -- in the Top Story section about the Stock Market Crash this October (resonating with the Great Stock Market Crash of October 1929), so much of what I anticipated has exactly come to pass.

What happened earlier in October -- with the DJIA going down a couple of thousand points -- has now reached another major downturn today as the DJIA dropped by 203.18 points to close at 8175.77. This is nearly 6000 points below the high it reached over 14,100 back a little over a year ago.

Today was the day that Mars in Scorpio made its return to where it was during the Oct. 28 - 29, 1929 phase of the Great Stock Market Crash of that time.

I had stated in that special feature from September 18 that we have never experienced -- in the past 79 years -- simultaneous Sun, Mars and Mercury Returns as the solar orb makes its annual return each year to the Great Stock Market Crash zodiacal placement of 5+ Scorpio. Tomorrow -- Tuesday October 28 -- we are in the extreme "dark of the Moon" cycle during stock trading hours until the Scorpio New Moon occurs at 7:15PM EDT.

While the Federal Reserve is planning some kind of Fed Funds interest rate lowering tomorrow -- that usually encourages the purchase of stocks -- the DJIA may have already factored in what will probably be a half-point decrease in the main interest rate that the Federal Reserve controls regarding banking lending rates.

The Asian and European markets overnight (Sunday night into Monday morning) were dismally down again, and if you go back to this past Friday October 24 -- the actual anniversary of the start of the Great Stock Market Crash of 1929 -- that was an extremely fearful opening for the DJIA because the futures index was down over 500 points before the NYSE opened.

All of this fits completely into what I predicted would happen during the middle of September. No matter what goes on tomorrow, we have transiting Saturn about to cross over the NYSE Mars in Virgo by next weekend while transiting Uranus will oppose the NYSE Mars (within 2 minutes of arc) for nearly a month's duration (between mid-November and mid-December). Mars connects to losses and debts in financial astrology. And there is going to be a financial summit in Washington, D.C. on Saturday Nov. 15 with the leaders of the G20 (major world industrial nations) gathering in the hopes of tackling the global financial meltdown of the last two months.

I have laid everything out for you in the two major articles now showing in the Top Stories section, plus what is listed toward the beginning of the News and Newsmakers section, the past stories I have written over many months and last two years, as well as this entire feature. We may have YEARS! to go before the DJIA actually hits a true floor-bottom based on Pluto entering Capricorn during Thanksgiving Week for a 16-year cycle and eventually opposing the USA Venus and Jupiter placements from 2009 to 2011. In addition, there will be five Saturn-Uranus polarities in the sky and several Saturn-Pluto squares and Uranus-Pluto squares in the sky that are going to rock the national and global financial realms during the next 6 - 7 years.

Update Tuesday Oct. 28: Today's 889.35 point rise by the DJIA may have revealed a temporary floor to the NYSE's main trading index. Investors have been looking for this bottom to the DJIA for several weeks and yesterday's close now functions in that manner.

The DJIA close yesterday -- 8175.77 -- may wind up being the temporary low for the time being. The most recent crashing of the DJIA -- down over 500 points on Oct. 24 and Oct. 27 -- made stocks very attractive to so many buyers who have been itching to make some of their losses back.

During the two Great Stock Market Crashes (October 1929 and 1987), we have had the same solar-lunar dark of the Moon cycle happen as the DJIA collapsed downward in its crash trajectory. Yesterday -- Monday Oct. 27 -- fulfilled many of the crash markers I had set up in the September 18 article in our Top Stories section.

The biggest question for the rest of this week is whether today's rally can be sustained or if transiting Saturn's approach to the NYSE Mars position (exactly next weekend) will drag the DJIA down again toward the end of this week.

Keep tuned to this web channel for late-breaking astrological stories.

Copyright 2008 by Great Bear Enterprises, Ltd. and Mark Lerner. All rights reserved.

[Mark Lerner publishes Earth Aquarius News. Reach him by writing to: MARKL@MARKLERNERASTROLOGY.COM ]

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