1.) the U.S. fiscal year ENDS on Sept. 30th and a NEW one starts on Oct. 1st. and
2.) The Basel-II deadline for U.S. banks to be “Basel-II compliant,” originally
Sept. 1st, must surely come due on Oct. 1st, 2008.

Basel-II compliant banks in Europe and elsewhere will be forbidden to do business
with non-compliant banks in the U.S., effectively bringing the non-compliant banks
down.

http://en.wikipedia.org/wiki/Basel_II>

Apparently a 90-day extension was given for U.S. banks to get their books in order.
That extension expires on Sept. 30th so by Oct. 1st U.S. banks MUST be compliant
or they CAN’T DO BUSINESS WITH COMPLIANT (more honest) BANKS.

I would guess that the REAL REASON for the sudden big PANIC and RUSH has to do with these deadlines. Nothing else makes sense. And the blaming of “bad mortgages”
for the whole mess is totally disingenuous.

If this is on the money, the next few days should prove, at least, interesting.

No one will be investing in Australia for a while because there are bugger all institutions able to invest anywhere until this whole thing shakes out.