They are not going bankrupt because of their subprime losses, even
according to the ratings agencies that just cut them.  They are losing
so much money on rumors that they had no liquidity, rumors that
fulfilled themselves.  What do we do if they make their earnings
Monday?

Also, I agree with most of the rest of your post...but it's my
opinion, and those of the CEO, and those of ALL 3 ratings agencies
that cut them, that they are being rumored out of business.

They bounce easily 50% of the way back up  if they make earnings for
the simple reason that they will gain back the confidence they've lost
to liquidity rumors.  Man, I hope someone starts rumors about JPM or
GS so I can buy a ton of that cheap too!