How did we get into this deep financial crisis? Why Europe is different? Is it enough with an increase in the capital requirements of banks? Are incentives of everybody in the financial system aligned with the common good? Are policies aiming at the right target? What should be done to mitigate the effects of this crisis? And to prevent the next one? To this and to many other questions, we try to answer in this book, written in a didactic way which also those with no economic background can understand and follow.