(23 March 2020)
Checks and balances, yes. Effective government, not so much. US
politics has once again revealed its dysfunctional side amid the
coronavirus crisis as the Senate has failed for a second time to pass
an aid package. On Monday, Mitch McConnell's Republicans (pictured
here) and Chuck Schumer's Democrats could not find a compromise to pass
the aid package which would provide assistance to individual Americans
and corporations who are suffering financially from this unprecedented
shutdown of economic life. This legislative failure caused stock
markets to extend their historic decline, despite the Fed promising
unlimited loans and asset purchases before the market opened. Today's decline was evidenced through two simultaneous malefic combinations. The Sun and Mercury aligned with Rahu, the North Lunar Node, while Mars conjoined Pluto in the first degree of sidereal Capricorn. Both are bad influences on collective sentiment, and together they provided enough negativity to take stocks to new lows in this huge February-March decline that has seen stocks fall by more than 30%.
The main components to the decline are still active. As I noted back in January, the conjunction of Saturn and Pluto had a very ominous quality which was made more more dangerous since it occurred in the first degree of Capricorn. As a rule, sign changes involving any malefic planets are usually magnified in their impact.
To be sure, January only marked the beginning of the coronavirus pandemic in China while most stock markets outside Asia managed to stay buoyant until February. To be honest, I was surprised when US stocks rallied higher in early February after a brief dip in late January. However, the situation worsened as Saturn conjoined its planetary node at 4 Capricorn with Pluto still very nearby in late February and early March. In retrospect, the Uranus-Rahu alignment likely also played a role in the decline, possibly in terms of its speed and suddenness.
Financial markets are likely to remain volatile for a bit longer as Mars will conjoin Saturn early next week. Some additional downside is therefore quite possible at that time. However, we should note that the rest of this week could see some upside as bullish Jupiter (29 Sagittarius) conjoins Pluto (0 Capricorn). Pluto often amplifies the planets it is associated with so a large gain is quite possible in the coming days. Also we can see that Venus will form a favourable 120 degree angle with Jupiter-Pluto later this week so that should also translate into some gains.
In other words, it seems likely that the Senate will finally get its act together and pass this bill. What happens with the virus is another matter altogether and I'm afraid I don't have any quick answers. Even if the case numbers and death continue to grow, stocks are likely to bounce anyway in the hope that the economy can recover eventually. Just when that recovery may occur is unclear, however. I hope I can provide some insight on that question in the near future.
In the meantime, let's all stay safe and help each other try to make the best of this strange situation we all find ourselves in.
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