You can't have a free market in land. There are too many constraints such as planning permissions and the fact that the supply is fixed overall. Therefore to h

You can't have a free market in land. There are too many constraints such as planning permissions and the fact that the supply is fixed overall. Therefore to have a free market in credit with these constraints it's inevitable that it will be used for speculation. We should have land value tax to win back our right to exist instead of credit fueled full land enclosure. It's an unmitigated disaster - the defining issue of our times. Credit is near infinite as thanks to fractional reserve banking banks can create as much of it as demand requires. They are not constrained by savings. Most bank lending is against land, it's how money is being printed. How has the market adapted when we are working 25 times 2 years for the same pile of bricks our parents worked for 15 years for? It's simply the banks taking more of a share of your labour. You get nothing else back. There is no point in being more productive. It will feed through into land prices as disposable income (briefly) increases and then land prices go up and we are back where we started. This is how banks capture all productivity. Read http://www.amazon.com/Progress-Poverty-Industrial-Depressions-Increase/dp/0911312587 http://www.amazon.com/Progress-Poverty-Industrial-Depression... ps in the UK house sizes are falling, in part because of smaller families / divorces but mostly because of land price ramping