The subprime mortgage crisis has already wreaked havoc on the lives of millions of people and now it threatens to derail the us economy and economies around the world much of this crisis comes from the irrational exuberance that drove the economys two most recent bubbles in stocks in the 1990s and in housing between 2000 and 2007. The subprime mortgage crisis has already wreaked havoc on the lives of millions of people and now it threatens to derail the us economy and economies around the world much of this crisis comes from the irrational exuberance that drove the economys two most recent bubbles in stocks in the 1990s and in housing between 2000 . In the longer term the subprime solution will require leaders to revamp the financial framework by deploying an ambitious package of initiatives to inhibit the formation of bubbles and limit risks including better financial information simplified legal contracts and regulations expanded markets for managing risks home equity insurance policies income linked home loans and new measures to protect consumers against hidden inflationary effects. Thus the global financial crisis mentioned in the title is not completely or adequately explained the words credit default swap do not appear shiller the arthur okun professor of economics at yale concentrates on the housing bubble and the mass psychol this little book went to press in 2008 but before the whole financial system almost . The subprime mortgage crisis has already wreaked havoc on the lives of millions of people and now it threatens to derail the us economy and economies around the world in this trenchant book best selling economist robert shiller reveals the origins of this crisis and puts forward bold measures to solve it he calls for an aggressive response a restructuring of the institutional foundations