This article focuses on the ongoing financial crisis, the worst since the Great Depression, which has led to a global economic recession, mainly resulting from the loss of confidence in financial markets and constraints on the flow of credit. As a result of the financial turmoil, the global economy faces high unemployment, depletion of private savings, bankruptcy of thousands of companies, and shortage of state funding for the provision of social service. Moreover, the experiences of the past two years have demonstrated that in many cases the activities of supervisory bodies are ineffective, incoherent and non-transparent. Both policymakers and economists are looking for answers to the twin questions: who is responsible for the crisis and what should be done to address the problem? It is hardly comforting that many experts had warned about the looming turmoil. Unfortunately, because their predictions were not fulfilled immediately nobody took them seriously.