How could the US credit crisis pass over to the rest of the world?

Please use as many details as possible.


I really want to know how the US credit crisis was able to affect the rest of the world.





Thank you!|||The US crisis wasn't even the biggest crisis in the world. Iceland made promises to millions of people and was not able to deliver on the promises. They were the worst.


England and English banks invested way too much money in Iceland banks because they believed the promises. That money disappeared. England (and Scotland and Ireland) is 2nd worst.


The USA made loans to people who had no ability to pay back the loans. That was not smart. But it often happens in times when everything seems wonderful and there is a "euphoria" in the business world. Every investment seems to be a winner. But at some time the borrowers have to pay back the money. We are in that "stage" now and it is not pleasant.