Problem #10: Simple Algebra

Given x = 1 and y = 1, we have
	x = y
Multiplying each side by x
	x2 = xy
Subtracting y2 from each side
	x2 - y2 = xy - y2
Factoring each side
	(x + y)(x - y) = y (x - y)
Dividing out the common term ((x - y) we have
	x + y = y
Substituting the given values
	1 + 1 = 1
Or
	    2 = 1
What is wrong with this proof?
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