FINANCIAL FORECAST

The stock market forecast for 2008 was right on the "lost" money. The 2008 recession is the worst economic downturn since the Great Depression. The credit/mortgage crisis has triggered a worldwide depression. As the financial crisis has spread, the government's commitments have grown into the trillions of dollars. The government has spent $1.4 trillion since the end of November 2008. It has guaranteed almost $8 trillion in investments, deposits, and loans. That figure does not include $755 billion in currency swaps with central banks in other countries. The government has been proactive by being an insurer, an investor, and as a banker in order to stimulate the economy. Barack Obama's economic stimulus plan will add up to a trillion dollars more to the money already earmarked. Unprecedented manuevers in an unprecedented year.

Barack Obama made history by becoming the first black president. He will, no doubt, make an even bigger name for himself by tackling the economic mess, two unresolved wars, and a world increasingly unreliant on the U.S. Shortly, I will address the challenges facing the United States in 2009 and how President Obama will guide the nation. First, let us take a look at how long this recession is likely to last. Forecasting the economy involves 7 categories of influence.

The high point of the market and the economy was October 12, 2007. It has been mostly downhill since then and prospects for a 1930s style depression are very real. (1) Sunspots indicate the highest bull markets and the lowest bear ones. 2008 was a year of sunspot minimum so a lowest bear market is indicated. The last sunspot minimum was 1997 and there was a minimum in 1933 too. The most telling factor concerning sunspots is when they first move above an average of 50 per month. From 1871-1964 this predictor marked the PEAK of the market - with a sudden crash occuring immediately thereafter. In July 1966, however, the "Above 50 Signal" reversed. Instead of marking market highs and the beginning of a bear market, the signal indicated market LOWS. This is not going to come as good news since the National Oceanic Atmospheric Administration estimates don't show a rise above 50 until June 2010. NOAA estimates are frequently adjusted so this date is likely to change somewhat. Sunspots started to show up in the double digits beginning Jan. 9, 2009. But it still will be a long time before they rise above 50 on average per month. Expect the worst of this depression in 2009 and early 2010.

(2) The Saturn-Uranus zodiacal aspect of late 2008-2010 warns of a financial crisis. The Jupiter-Neptune cycle is primarily an inflation indicator but 4 out of the last 5 conjunctions led to a financial crisis. The next conjunction will take place in 2009. Jupiter-Uranus indicates a low in 2009 but a rise in 2010, followed by crisis in 2013-2015. Jupiter-Neptune points to crisis in 2009. Jupiter-Pluto also points down until mid-2010. Only one aspect, Jupiter-Saturn indicates an up market in 2009.

(3) Saturn-Neptune is primarily a deflation cycle that shows modest deflation in 2009 with major deflation in 2015-2016!

(4) When there are an above average number of eclipses in one year (six or seven) the market tends to be disrupted. There are 6 eclipses in 2009!

(5) The major market indicator of Mars-Jupiter-Saturn aspects (see my book EARTH CHANGES) correctly indicated a correction near August 2007 that centering around December 2007. The next Mars-Jupiter-Saturn aspect is in January 2009. The recession will be severe and new threats will emerge at this time.

(6) Dry weather is also an indication of a bear market. 2007 was the third year of drier weather (see Data link). 2007, in fact, turned out to be drier than the average precipitation - a dire warning of the recession that manifested. The good news is that precipitation was UP in 2008. This augurs well for an economic recovery in 2009 or 2010.

(7) Lastly, there are cycles in the U.S. chart that indicate recessions and panics throughout our history. As predicted last year, the current recession (2008) is likely to be severe enough to trigger a world depression. The greatest economic downturns tend to be when sunspots are low as they are now, during dry weather trends as we have been having, and when certain slow cycles (21-year, 41-year, and 62-year) are formed in the U.S. natal chart. All of these conditions were met in 2008. In addition, Pluto is in opposition to the U.S. Venus (money) three times in 2009. This could indicate good economic times but Uranus crosses the Descendent twice, the second time in September just as Saturn (financial loss and restriction) crosses the Ascendent. These are clear astrological signs that the recession will continue through 2009.

Transiting cycles to the U.S. horoscope are promising in November and December 2009. But 2010 is a wild card since Uranus crosses the Descendent for the third time in February. This is a destabilizing cycle due to the uncertainties and fragilities of trading nations. Signs are more favorable in May when Jupiter crossed the Descendent for the first of three times. May-October 2010 the economy will seek to balance itself. The U.S. Saturn-return (Dec. 2010, Mar. 2011, Aug. 2011) will play upon transiting Pluto opposite the U.S. Jupiter (money). These cycles together indicate financial frugality, structure, and stability. I am not talking about robust growth but, rather, a stable and well regulated economy.

You can read more about the near and far-term economic forecast under Articles: "Inflation Warning and the War in Iraq."

Footnote: The U.S. economy has been in a "superboom" since 1982. The stock market has suffered only two recessions, in 1990-91 and in 2001, with the total months for these downturns being 16 months. In the previous 25 years, the economy experienced six downturns for a painful total of 67 months. The current depression will be long and hard, but when it ends growth will resume for a short time. The period near 2015 is particularly troubling. A thorough analysis of this period is necessary as a debt collapse is then possible.