Subprime Crisis

How has subprime crises in USA erupted a volcano in remaining world?
Basically subprime crises act as a chain reaction resulting in a bigger blast every time its effect is felt on the member of the chain. So as the loans were defaulted in the US by the firms and households, this chain of continuous defaults resulted in increasing number of properties in the hands of banks and as these were handed more and more to these banks the value depreciated in huge values as compared to previously stated values when the private players were banking upon their huge earnings to cash these properties. So continuous withholdings of these assets from households/firms to banks sparked an unwanted downfall in the liquidity in the current state of the market. By liquidity, i mean the cash flows reduced as the mortgaging by the banks increased to innumerable numbers causing a huge fall in the liquid form f money that is cash or bank deposits fell causing a tremendous amount of effect in the current picture of the market situation. Such setbacks acted as a fuel to fire in the whole world economy as major banks set up in USA failed with subprime crises. With many local banks and financial institution banking upon these banks failed and hence resulted in a big phase of recession. This worse phase of recession is felt throughout the whole economy in every single country and the situation can’t be taken under control till the time government interferes with the matter on hand.
Now this government interference can be taken as a phase of development transition of capitalism into socialism phase .Socialism is the ultimate phase of Development .This is mainly because of the fact as world globalises the only force in hand is government interference whenever the world economy suffers from crises . And hence socialism.
So this subprime crisis can mark a possible transition of development phase from Capitalism to Socialism.