Wednesday 16 July 2008

The most important story in Scotland

And it's not Glasgow East.

Jeff from SNP Tactical Voting gets it:

RB Afraid, RB Very Afraid

Less than a month ago I blogged about the worrying state of RBS' share price. I was worried about a share price of £2.30, especially when shares were trading at £7 only a year ago.

Well, in less than a month, that £2.30 is now down to a very, very troubling £1.70.

Last night the Royal closed at 167.70, down 7.06% for the day. HBOS was down 4.41%.

Scotland's economy is very dependent on financial services. And the uniquely centralised nature of the UK makes the situation even more precarious.

Jeff writes:

Royal Bank of China, coming to your high street soon. Mark my words....
I wouldn't be surprised at all, and such an outcome would be disastrous for Edinburgh and Scotland as a whole. Power, influence and the top jobs follow the headquarters.

But an RBS takeover isn't the worst prospect facing us right now. What should really worry us is the survival of the entire banking system itself. And it's not like we havnae been telt. Is it?

In conclusion, here's a movie from (near) Hollywood.

1 comment:

David Farrer said...

Comments from previous template:

David Farrer
If you invested at around noon on Wednesday you could now buy New Zealand! 
Yes, I saw that. They just can't help themselves, can they? 
Let's hope so.

18 July 2008, 17:49:12 GMT+01:00
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RBS will be absolutely fine, and on a 5 year view looks like an absolute steal. £16 billion in cash from rights issue and assets sales, with another £7 billion to come? Not to mention the synergy effect of the ABN Amro takeover about to kick in. Expect at least a five fold return...

18 July 2008, 12:16:40 GMT+01:00
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Unrelated, but thought you might like to see this; 
How desperate are they to hold onto Glasgow East?!

16 July 2008, 11:11:14 GMT+01:00
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john b
I suspect these guys are closer to the truth - a bit of jittery paranoia, followed by business as usual...

16 July 2008, 10:46:40 GMT+01:00
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Trading at £1.55 and it's not even 10am. 
Seriously, I'm torn between ploughing my life savings into these shares or running away to New Zealand.

16 July 2008, 09:50:14 GMT+01:00