I will donate $1000 to the DNC now if someone explains how G-S caused Lehman to fail.

[JackRiddler]

54. "If home values had kept going up" is an insane statement.

Home values were pumped up aggressively by the subprime vultures flogging unaffordable scam loans to millions of suckers who would have never received them prior to 1999. The environment in which participation in this became compelling and from Lehman's viewpoint necessary was created by the Glass-Steagal repeal, that allowed the deposit banks to get into the game. Inevitably the last buyer would be found and the peak was going to be reached. It's like you're wishing for more planets, or rivers of ice cream. Furthermore if Lehman had failed under the Glass-Steagal rules it wouldn't have mattered. An investment bank goes down, tough shit, but it doesn't affect all the deposit banks who have been allowed to move into the investment banking market.

Either you're an idiot or worse: Larry Summers.