Part 8/10:
The collapse of Lehman Brothers ultimately revealed deep-seated weaknesses within the financial system, most notably the catastrophic risk of excessive leverage and unchecked speculation. The consensus among experts has been that the firm’s downfall stemmed from a toxic blend of greed and hubris, engrossed in an era of easy credit and rising asset values. Investment banks like Lehman dared to believe in a form of financial wizardry that had cured fundamental risks, leading to monumental miscalculations and ultimately, ruin.