Whilst the problems of Iceland's Landesbanki* are in the news once again, it is the problem of land banking - see en.wikipedia.org/wiki/Land_Banking - which I want to focus on here.
Land speculation is as much a challenge for regulators - if not more so - than other forms of financial speculation.
It is time for regulatory authorities in the UK, and elsewhere, to get to grips with the negative contribution of speculative land banking to dysfunctional property markets.
Until there is a proper understanding of this, housing issues of the kind referred to in my previous post cannot be resolved.
At the present time, UK government policies continue to encourage excessive speculation, and, therefore, exacerbate the very problems they seek to tackle.
See also my blog @ http://smartlimits2growth.wordpress.com/
* Landesbanki now own West Ham Football Club
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