Economist Mark Zandi is a clear primer on how and why the crisis occurred. Zandi is chief economist and cofounder of Moody's Economy.com. "Financial Shock": A 360 Degreee Look at the Subprime Mortgage Implosion, and How to Avoid the Next Financial Crisis. 270 pp.$24.99. My comment: Implosion leads to explosion to other nations due to global impact with repercussion in the days to come.
Kevin Phillips, the author of "Bad Money"- Reckless Finance, Failed Politics, And the Global Crisis of American Capitalism. Viking. 239 pp. $25.95. He is alarmed by the increasing gap in wealth between the richest Americans and the rest of the population. Other analysts see this trend coming from political choices, the unplanned chaos of global markets and individual avarice. Phillips, author of American Dynasty and American Theocracy, spies the shadowy hand of the financial elite pulling the strings. According to him, since the 1980s, Wall Streeet and its Washington allies have set out to tie the US economy to the money sector and let manufacturing companies and factory workers fall by the wayside.
It is up to the readers to agree or disagree with such views. I would envision closer cooperation and collaboration of economic activities of USA and China for mutual benefit in terms of globalization of two nations on both sides of the Pacific in the 21st century.
Francis Shieh a.k.a. Xie Shihao,a lifelong student of comparative economics and a blogger interested in Sino-American Economics. September 11, 2008 at 6.35 a.m.