Was the collapse of Lehman Brothers a colossal failure of common sense?

I just finished Lawrence McDonald’s book which offers an insider’s look into the final years of Lehman Brothers, which was the fourth largest investment bank in the US before declaring bankruptcy on September 15, 2008.

Which actions led to its demise? Or was it just the ignorant CEO Richard Fuld who seemed to have run the company like a kingdom? Were declining ethics equally responsible for Lehman’s collapse? Is Treasury Secretary Henry Paulson to blame?

Lehman’s last chance came when George Walker IV, cousin of President Bush, calls the White House on September 14, 2008. The President, however, refuses to take the call, and bankruptcy ensues. See also

http://www.huffingtonpost.com/lawrence-g-mcdonald/paulsons-decision-cost-le_b_291723.html

What are your thoughts?

McDonald’s book sent a chill down my spine. Sheer, utter stupidity triggering a severe global recession. What in the world went wrong?