Thursday, January 22, 2009
Will somebody tell this horrible person to stop writing sensible articles!
There are still people clinging to the absurd notion that RBS shares have been falling again because the ban on short selling was removed. Figures released show that no short positons were opened against RBS in the first three days after the lifting of the ban, yet the shares plunged downwards. The reason RBS shares have plunged again is primarily the company’s release of estimated figures for 2008. These showed an estimated loss of £8 billion, coupled with “impairment charges” (losses or write offs to anyone else) of £15-20billion! In other words the City forecast I have been using here for sometime of around £28billion of total losses gave people a good guide to the magnitude of their problems.