I read a blog today that had this video included in it:

I never really pondered it they way this video suggests we ponder that question.  Since listening/viewing this video I have to agree, the question isn't "Why does God allow bad things to happen?" but "How can God, in His Holiness and Righteousness, allow me to continue to live?" 

The answer is found in His Word.  He loved each of us enough that He was willing to allow His only begotten son, Jesus, to die on the cross for our sins.  How many of us love someone enough to die for their wrong doings?