Royal Bank of Scotland Lecture

FaTB

Apologies if its been posted before, but I thought it was a bit of an "eye opener"

At first I thought it looked a bit suspect, but I've taken this link straight from the RBS website.

I'm still a little confused as to why a LENDER would be so honest about the state of the property market.

The last line is the most telling for me, and should be taken seriously by anybody thinking of buying property at the moment, especially if its an "investment" and not a home.

Last line of the conclusion says

"Now is the time to reduce your exposure to property, not increase it"

Just click on the link on the webpage.

http://www.rbs.com/media03.asp?id=MEDIA_CENTRE/RBS_AND_THE_ECONOMY/ANNUAL_ECONOMIC_LECTURE#Lecture_2006

F_T_Buyer

Information like that would never be released to the media, that is intended for investors and those who hold their huge wealth with the bank.

The media machine is spoon fed information from the like of banks, and that information is very carefully selected and portrayed in a light that supports growth in their business, i.e. growth in lending, i.e. debt!

The property market is at a stage now where it is very near the top, it could go on longer, but people are catching on to how they have been conned.

It's like kids playing on the railway line, a few people are going out of their way, screaming/telling them to get off, when they do say something they reply with "a train hasn't come yet..."

BobProperty

It makes an interesting read, doesn't it? The one thing that struck me was he was talking about 38% and 50% falls, which, if I remember right, are Fibonacci numbers aren't they? Any Retracement Theorists out there?

FaTB

BobProperty wrote:

It makes an interesting read, doesn't it? The one thing that struck me was he was talking about 38% and 50% falls, which, if I remember right, are Fibonacci numbers aren't they? Any Retracement Theorists out there?

Huh ??? I haven't got a clue what your talking about.:rotfl:


But yes it is a very interesting read, if your willing to put aside a few minutes.

F_T_Buyer

To be honest, it's obvious what's going to happen. Looking at society's problems.

The issue I have, is after looking at HPC and GHPC, I feel the warnings are falling on deaf ears. Maybe this is why newbie's threads get so many replies.

Cardinal-Red

BobProperty wrote:

It makes an interesting read, doesn't it? The one thing that struck me was he was talking about 38% and 50% falls, which, if I remember right, are Fibonacci numbers aren't they? Any Retracement Theorists out there?

Nope not Fibonacci numbers... but if they were, expect a Dan Brown novel out by the end of the year...

mrs_deadline

FaTB wrote:

I'm still a little confused as to why a LENDER would be so honest about the state of the property market.

Thanks for posting FaTB, an interesting read indeed. I'd see it as a message from an economist to governments/regulators rather than a lender's view, but good on the RBS for spreading the word.

Most worrying line for me: Key is the US which "barring accidents" looks OK for a while longer... Could there be a better example of an accident waiting to happen?