More historic images coming out of California of screwed savers camped outside fraudster Michael Perry's IndyMac bank branches - c/o the OC Register

I hope Michael Perry remembers these images after his arrest and conviction, as he rots away for the rest of his life in jail.

Rampant mortgage fraud perpetuated by Michael Perry and the management and employees of IndyMac caused this mess.

And now it's time for the arrests to start.

Now.

SPECIAL FLASH FROM THE UK: THERE HAVE BEEN LINES OUTSIDE NORTHERN ROCK BANKS ALL OVER THE COUNTRY, RUN ON BANKS IS AMAZING TO SEE IN PERSON

Never in my life did I think I'd witness a real run on the banks. But that's exactly what's happening here in England today and is still going on tonight. PANIC is in the air, the BBC is running non-stop coverage, the papers are ablaze, and it's like a virus has just gotten loose.

There are still people queuing outside of Northern Rock locations all around the country right now. The media is reporting that branches will stay open as long as queues are still forming. Panic is everywhere, all the papers leading headlines were about the panic, creating more panic, and a classic bank run is underway.

In England, savers are only protected for 100% of the first £2000 and 90% of the next £33000 - and that's it, after that, if an English bank fails, the saver loses EVERYTHING. Thus the queues and panic. And calls by people on TV right now to "remain calm" and "don't be irrational".

A Special HousingPANIC message to Northern Rock savers: Get your money out of there tonight if you still can. And for UK homedebtors - your housing Ponzi Scheme is over. The UK housing and credit bubble have burst. Get out now, get out fast, and thank us later.

Northern Rock customers queue for cash as crisis hits high street

The credit crisis spilled onto Britain's high streets today as worried Northern Rock customers queued up to withdraw their savings.

Their fears were prompted by the revelation this morning that Britain's fifth-biggest mortgage lender had to ask the Bank of England for emergency financial assistance.

OK, now some people are going overboard. But damn it's funny. Here's Countrywide's "Mozilo Monster" youtube video

Are you ready for the storm?

Again and again, and you'll know why soon enough, I'll repeat this mantra from the HP bible - Manias, Panics and Crashes:

· The final phase is a self-feeding panic, where the bubble bursts. People of wealth and credit scramble to unload whatever they have bought at greater and greater losses, and cash becomes king.

And so here we go... should be quite the ride this week, pre-Fed. Buckle up.

Banks face 10-day debt timebomb

Britain's biggest banks could be forced to cough up as much as £70bn over the next 10 days, as the credit crisis that has seized the global financial system sparks a fresh wave of chaos.

Fears of this impending call on bank credit lines are the true reason that lending between banks has ground to a halt, according to senior money market sources.

"Banks are hoarding cash," said David Brickman, the head of European credit strategy at Lehman Brothers. "We think the reason for that is the commercial paper markets. There was $100bn of commercial paper issued by European institutions that was scheduled to roll over in August, much of which struggled to do so.

HousingPANIC's "Angelo Mozilo Stupid Quote of the Day"

``It was impossible to anticipate the credit crisis we've seen on a worldwide basis"

- Countrywide's Angelo Mozilo, after dumping $425,000,000 of CFC shares, either lying, or who must not have had access to HP, Contrarian Chronicles, Peter Schiff, Robert Shiller, The Economist or hundreds of other sources who predicted EXACTLY what we're seeing today.

(Yes, I'm short CFC, and thanks to an HP'er for the new Mozilo get-up!)

Vulture Financing Alert: Countrywide pays BofA 7.25% until they can pay no more. Then Bof A gets to help wind-up and dissolve Countrywide

Pretty nifty move by BofA, taking over a cash-desperate CFC for $2 Billion with zero risk if they hedged. They're probably betting that once Countrywide's assets are sold off, or this competitor goes away, they'll do OK. Or if they were even smarter, they bought a ton of CFC put options yesterday at the open. Yes, I'm short CFC.

From MarketTicker:

Under the terms of the Convertible Preferred Securities, set forth on the Certificate of Designations of 7.25% Series B Non-Voting Convertible Preferred Stock of Countrywide Financial Corporation (the “Certificate of Designations”), holders are entitled to cash dividends, payable quarterly, at the rate per annum of7.25% of the Liquidation Preference per share of $100,000.

The initial amount of dividends payable on each share of the preferred stock outstanding for each full dividend period will be $1,812.50. Dividends are cumulative and if dividends are not paid for six quarters, holders of the preferred stock are entitled to designate two directors to the Company’s Board of Directors until dividends have been paid for two consecutive quarters.

With respect to dividends and distributions upon the liquidation, winding-up or dissolution of the Company, the Convertible Preferred Securities rank in priority senior to the Company’s common stock and to each other class of capital stock or series of preferred stock (where the terms of the stock do not expressly provide that it ranks senior to or on parity with the preferred stock) and on parity with any additional Convertible Preferred Securities and any other class of capital stock or series of preferred stock.

Convertible Preferred Securities each have a Conversion Price of $18.00, which may be adjusted upon the occurrence of certain events."