2012 Financial End Game

Though this loss is considerable, the impact on the decrease in stock
market capitalization from July 2007 until November 2008 alone was
calculated to have been $26,400 billion which was one hundred times
greater than the loss on the subprime market in the United States
where the crisis actually began.
Two questions have to be asked. How was it possible for the
subprime crisis in the United States to occur and how was it possible
for such a relatively limited and localized crisis to have been able to
cause a crisis of such magnitude to world earnings?