The Turner Review
- a regulatory response to the banking crisis - has just been published. It is a highly technical and densely written 120 page analysis which needs to be gone through carefully. Anyone lacking the necessary background knowledge will be unable to grasp much of the detail.
All we can say about it is to point out yet again that the primary cause was a credit-fuelled land price bubble. These will
always happen unless that is addressed, for example, by land value
taxation - collection of the annual rental value of land for use as the
principal source of public revenue. Such boom-busts based on land
speculation with borrowed money have been occuring since the beginning
of capitalism around 1800, at intervals of about 18 years. Which is
just long enough for the defence mechanisms to be dismantled before the
A very long term view must be taken.