To bring up the old adage "What's good for GM is good for the country", well, that is the way I have viewed GS. GS is the new GM since the decline of manu. It wouldn't be good for GS to fail. GS is the epitome of what we do in this country, manufacture "financial instruments" using a pencil and paper.
1) MS will be the second-to-last domino standing. 2) GS wil be the last domino standing. 3) After it falls, that will mark the "final bottom", just like the Bank Holiday in 1933. We'll see. 4) IBKR will merge with a foreign currency bucket shop.
I cannot imagine GS going under. I think their internal prop trading will make money off this volatility...maybe enough to survive.
MER deal wasn't exactly a firesale....they recieved 50% premium. sure, they dumped their mortgage derivatives at 22c per dollar.