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Dr. Nouriel Roubini, also known as “Dr. Doom” for foreseeing the financial crash of 2008, said the Goldman Sachs may be the next financial entity to collapse.

Roubini says that more financial firms could follow the lead of MF Global and names a few more candidates: Morgan Stanley, Jefferies and Barclays. Leverage is still a significant problem for these financial firms.

Goldman Sachs is one of the largest financial services companies in the world.  According to Alessio Rastani, “Goldman Sachs rules the world”.

The current focus of market is on European banks, and their high exposure to European sovereign debt. But US firms aren’t doing significantly better. Some banks are doing financial “tricks” to improve their numbers.

For example, if their bonds are sold off, they can write it as a profit as they can theoretically buy off their debt cheaply. This is totally legal, but it doesn’t mean that these banks are sound…

Here’s more on global leverage of banks.