WHY HOUSEHOLD DEBT REGULARLY BECOMES IMPOSSIBLE

Karl Case and Robert Shiller have done an excellent job sampling existing real house prices in US cities to present a compelling story.

Gavin Putland and I have put ALL of Australia’s real estate sales (residential, commercial/industrial and rural) over GDP to paint a similar picture of bursting real estate bubbles since 1972. [The Kavanagh-Putland Index]

These repetitive bubbles could be ended–and economies vastly stimulated–if countries captured more of the economic rent of their land instead of taxes. Too easy!