One of the heavily cited reasons around here is the Community Reinvestment Act. I don't doubt that as a cause, government meddling will usually come to no good. But did Germany have it's own version? Did they have a housing bubble? Banks are failing in Britain, as well, that must be related.
It seems likely to me that the same forces causing our problems could be found to be at work in Germany & Britain, as well. What are they? Anyone?
AFAIK they have been trading the same subprime US packages as everyone else. A bad loan goes around the world.