A real run on banks -- yesterday and today


I never thought I'd live to see this, other than in history books, in a developed Western country.

The UK's Black Rock bank went into receivership, with the Bank of England rushing to bail it out after its toxic mortgage portfolio of overvalued mortgages came crashing down.

The UK housing bubble is so severe that it makes the Bay Area look tepid. In my old neighbourhood in South London, council flats that sold for 30,000 pounds sterling 10 years ago were selling for over 300,000 last year.

Well, that's all deflating rapidly. And the collapse of the British banking system has begin.

Check out the articles -- and especially the photographs -- from London's Daily Telegraph. It's like 1929 all over again.