Do you read french? I find that english only speakers miss out on a lot of high level theoretical discussion on economics, due to some sort of.... bias?... a cultural thing in favor of excessive self-reliance? something... which means that non-english speakers are willing to entertain more "crazy" ideas than english speaking when it comes to economical theory.
Jacques Sapir is a french economist who has thought a lot about the theoretical basis of modern neo-classical theory and has made some powerful attacks on it. Unfortunately, a cursory glance through Amazon doesn't yield any book in english. If you can read french I recommend:
Les trous noirs de la science économique. Essai sur l'impossibilité de penser le temps et l'argent.
(The Black Holes of Economic Theory: Essay on the Impossibility of Thinking through Money and time)
Les Economistes contre la démocratie : Pouvoir, mondialisation et démocratie
(Economists against Democracy: Power, globalization and democracy).
His arguments are many and complex, but essentially he rails against the un-demonstrated status of "economic neo classical theory" as a scientific evidence or as in some way embodying some sort of "natural law" in the same sense that thermodynamics, for example, is a law. From here he draws an exceptionally strong argument about the legitimacy of economic theories as applied to politics, and tries to demonstrate that economic arrangements and rules derive their legitimacy from society and people (unless, like Schmidt, you are willing to apply the need for some sort of transcendent origin to those laws (ie. God). He is essentially attacking the fact that the economy is more and more being taken away from the province of politics, whereas he states that nations should in fact be free to arrange their economic organization as a democratic decision.
Here's his take on the subprime mess:
http://www.paecon.net/PAEReview/issue46/Sapir46.pdfFor a very good set of arguments against neo-classical theory, albeit from a libertarian point of view, but very intelligently argued, you should read Nasim Taleb's The Black Swan, and even better his earlier Fooled by Randomness (although you need both to get all the stuff). His books are great because they also provide most of the bibliography that demonstrates with experiments, that people CANNOT behave like the agents of neo-classical theory. They take irrational decisions, cannot judge odds, have hardwired biases and so on.