Interesting that we’re hearing the feds are going to take over mortgage giants Fannie Mae and Freddie Mac on the eve of Jupiter going direct in Capricorn. Jupiter is expansion and Capricorn rules the financial establishment.
The lingo Treasury Secretary Henry Paulson is using is “conservatorship,” but in reality the mortgage outfits are being nationalized — by a Republican Administration.
As many financial commentators have noted, these stopgap measures to prop up the U.S. financial system are merely postponing the day of reckoning. The Fannie/Freddie bailout is going to benefit the mostly institutional holders of its bonds and mortgage-backed securities, but owners of its common shares are still at risk.
If you’re looking for more detail on the bailout from a Wall Street source, here’s a link to my favorite money maven Barry Ritholtz.
One of my first posts when I started writing this blog on Mar. 17 made the link between Jupiter in Capricorn and the efforts of the U.S. government to avert a financial crisis by rescuing Bear Stearns.
Back then, Pluto was making its test-drive in Cap. Now, it’s back in Sagittarius and going direct. Hold on to your hats! This fall’s financial roller-coaster ride is just beginning!