As I suspected, bank shares kept falling today, RBS down another 39%, HBOS down another 38%.
The MPC should be announcing their interest rate decision tomorrow. Australia cut their rates by 1% this morning, and the general feeling is that our rates will also get cut.
If rates get cut, that should generate some good news in the market.
So I’ve bet a grand on RBS going up tomorrow. I got in at 98p per share, a ridiculously cheap price. Standard and Poor’s may have cut their rating on RBS, but I don’t think they are going bust any time soon (he says with fingers crossed!). HBOS will also probably jump up too but there is talk of the Lloyds merger hitting the buffers if they renegotiate the price, so it’s a bit risky.
This feels like gambling in a Vegas casino – you know you are going to be taken for a ride but you still do it!
But what a ride!
Tomorrow should be fun. 🙂