Do you really think that the American mortgage problem created the world financial crisis? Please elaborate. ?
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No, I think the housing bubble created it. The housing bubble and poor financial regulation and oversight. The bad mortgages were a symptom of the housing bubble, which was far more than in the US alone, in fact I hear the housing bubble was worse in UK and Spain than it was in the US. The housing bubble had to burst eventually, and when it did, it took the mortgage industry down too. Now add to that the poor regulation of the mortgage derivatives market, where these mortgages were securitized and sold all over the world, with inflated housing prices as the collateral, and you can see how the financial institutions made bad decisions because the government had to protect the downside, and the upside was all profit. A recipe made in the government institutions to get risky investments made by financial companies.
The mortgage crisis was the trigger for the falling of big companies who took great risks without thinking forward.
Leverage was the biggest problem and now we see the results.