I watched Alan Greenspan’s interview with Jon Stewart this morning. If you really want to know how fragile our financial system is, . The interesting thing from an astrological viewpoint was Greenspan’s admitting that the financial markets are all based on perception:
Greenspan: No, what a sound money system does is to stabilize the elements in it and reduce the uncertainty that people confront, and when people confront uncertainty they withdraw and it reduces economic activity…
Stewart: So it’s all about perception then. It’s about making people believe the system is sound. If the stock market is high, people feel confident in spending, and if it lowers, they feel less confident?
Greenspan: Well…uh…I think you have to realize, there are certain aspects of human nature, which move exactly the way you defined it. The problem is, periodically we all go a little bit euphoric until we are assuming with confidence that everything is terrific, there will be no problems, nothing will ever happen, and then it dawns on us- NO!
Stewart: And then it goes the other way.
Stewart: Huge Fear.
Greenspan: I was telling my colleagues the other day… I’d been dealing with these big mathematical models for forecasting the economy, and I’m looking at what’s going on the last few weeks and I say, “Y’know, if I could figure out a way to determine whether or not people are more fearful, or changing to euphoric… I don’t need any of this other stuff. I could forecast the economy better than any way I know. The trouble is, we can’t figure that out. I’ve been in the forecasting business for 50 years, and I’m no better than I ever was, and nobody else is either.”
Planetary cycles give us a way to forecast general trends, even though it is impossible to pick stocks using astrology as we’ve discussed many times in this column. Still, we know that Pluto in Sagittarius has ruled over the biggest stock market expansion ever, and that with Saturn in Virgo we are going into a more conservative mode. We know that when Pluto enters Capricorn the payment for all of this hilarity will become due and there is likely to be more fear that will cause a market contraction. These are things we’ve always known but it was interesting to hear it coming out of Greenspan’s mouth!