Show Trials: Why They are Not the Solution

Flying back to London I was astonished by the level of vitriol pouring from the majority of publications towards the leaders of banks, particularly HBOS and RBS. It has now become commonplace to try and point fingers at easy targets -- "it was them, it was them!" -- a bit like kids do in the playground.

However, while some may take comfort in sticking the boot in to high ranking executives, whether on Wall Street or in banking more generally, we would do well to remember that the broader problems of the real economy are more complex and not so susceptible to ready-made packages of show trials.

The consistent pursuit of a credit-based solution to the credit economy that we have is a very good example how our entire understanding of the problems we face lag well behind with the so called "solutions" that seem to be on the table with the Stimulus plans on both sides of the Atlantic.

The key transformation in recent years in western society is how we have gone from a production based economy where things are made by people to a credit based society - and what the implications are of this. A real and serious economic and political discussion needs to be had - rather than attempting merely to ameliorate or offset it by emergency cash injections - that seek simply to re-introduce a credit-based society.

Of course, it is far easier to castigate and vent at the "fat cats", the inconsiderate, selfish, greedy individuals - although as with the scapegoats of the markets in previous periods it does little to furnish us with real insight in to the underlying dynamics of what caused the problems, how and why - and rather seeks to provide a quick-fast feel-good explanation that really leaves the broader and more challening issues go unconsidered - and unchecked.