"The Subprime Solution" by Robert J. Shiller 2008 et al

The author is a professor of economics at Yale University and the book is published by Press.princeton.edu $16.95

Prof. Shiller blames the irrational exuberance as our economic culture and drove the economy's two most recent bubble in stocks in the 1990s and in housing between 2000 and 2007.

The bubbles led to the dangerous overextension of credit now resulting in foreclosures, bankruptcies, and write-offs, as well as inter-connected global credit crunch.

His first mentor, the late Prof. F. Modigliani taught him about social purpose in economics. I sent the same rationale of Socio-Economics to www.blogger.com to that effect.

The crisis has set in motion fundamental societal changes that affect our consumer habits, our values, our relatedness to each other. Consequently,the social fabric and rugged individualism as our psyches has been more evident as I have noted as well.

Mistakes of former FED chairman Alan Greenspan was pointed out by Professor John K. Galbraith in "Keys to Economic Understanding" in 1976 with his insightful vision.

On page 63, emerging nation like China has captured the imagination of speculators in the markets of gold and other metals. On Page 82, the city of Dongtan with no conventional cars, is being built on the island just off the coast of Shanghai by Britith firm to be completed in 2050 in anticipation of half a million residents.

"Foreign Affairs" magazine May and June 2009 issue with the cover of "The China Challenge" without in-depth studies of Chinese culture. It is a political focus from researchers at Council of Foreign Relations. Perhaps the authors should stress Sino-American Economics to realize the desiderata of two nations in the 21st century.

Francis Shieh aka Xie Shihao with keen interest of positive and constructive economic relations of USA and China in the days to come.

Sunday,April 26, 2009 at 1.32 p.m.