The paper presented strives to offer a closer look at the mechanics of the global financial crisis (GFC). Often, the debate tends to skip detailes of the crisis events and jump directly to recommendations. I believe, that if one does not try to understand, what happened and who is who in the unfortunate chain of events, we will not be able to draw correct overcoming plans. The negligence of the need to reform the financial system creates a specific aggravation for the small post-transition economies of the East. While, a lively debate about the reform goes in the developed economies, the EEC just follow the trend, deal with the symptoms, and wait for the storm to pass out. The paper reviels the main stream economics perception for the crisis, its causes and the actions needed to be taken. Then, it offers a critical revision of that perceptions and offers a competing picture. The more details are being revealed, the more clear it becomes, that the most needed change of the financial system is not part of it. It tends to be a change of the economic paradigm, responsible for the shortcomings of the financial regulation. The paper finds out, than the belief in the automatic functioning of the market, imposed by the neoclassical paradigm, led to decisions of leaving unregulated or, even of removing the existing regulation in vast areas of trade in financial instruments. Another conclusion is, that, it is the paradigm to be blamed for abandoning of economic analysis of the risk and replacing it with a mathematical exercises. The major outcome of presented analysis into the mechanics of GFC, is the claim for change of the dominant economic paradigm .