As sharemarkets crash around the world, the wrong people are being bailed out. Lower interest rates, infrastructure projects and money for the AIG’s of the world will only prop up land prices. Infact, policy makers couldn’t do any worse if they tried.
We actually need land prices to fall back to long term averages. About half what they are in Australia today. However, as Fred Harrison explains above, the wealth gap will only expand under the present policies.