Financial crisis have been happening for a long time now with little empirical studies investigating the real causes of these crisis and providing viable remedies. We provide empirical evidence of a three-stage cyclical pattern in an economy, following our investigation of the financial crisis of the past, where a gradual deterioration of financial structures occur that leads the economy into recession: The 'sustained economic activity' stage, characterised by the 'booming economic activity' stage. Unsolicited actions of many of the financial markets' players operate during both of these stages to push the economy into a 'booming economic activity'; the next stage is the formation of a 'bubble' and gradual enlargement of this credit 'bubble' in the sector; in the next stage this bubble ruptures and results in the financial crises in that sector. The economy thus experiences a big confidence shock and failure of financial institutions. The study makes policy recommendations to financial markets players and regulators.

Business schools produce leaders who command 'power' and 'governmentality', as per Foucault's theoretical conceptualisations, to institutionalise routines and social practices in contemporary organisations. These leaders must uphold ethics in their business decisions; however, this has not been reflected in many instances, as recurring financial crises have depicted over time. Efforts to address the issue and reach its root cause have failed to deliver concrete results so far, which necessitates an objective probe into today's business education. This conceptual-cum-analytical paper proposes an alternate, indirect approach to effectively tackle the issue. We suggest two remedies: first, transformative teaching and learning activities that inculcate ethical values into students should be implemented at the grass root level - primary and secondary schools, that feed into business schools with future business leaders; second, a conducive corporate governance environment within business organisations that supports ethical decisions and nurtures ethical behaviour needs to be developed - arguably the first being the prerequisite for the second.