As reported in the FT last month:
“Central bankers have given up on fixing global finance”
“The world is doomed to an endless cycle of bubble, financial crisis and currency collapse. Get used to it. At least, that is what the world’s central bankers – who gathered in all their wonky majesty last week for the Federal Reserve Bank of Kansas City’s annual conference in Jackson Hole, Wyoming – seem to expect.
All their discussion of the international financial system was marked by a fatalist acceptance of the status quo. Despite the success of unconventional monetary policy and recent big upgrades to financial regulation, we still have no way to tackle imbalances in the global economy, and that means new crises in the future.”
I have no way of knowing how accurate those reported comments are, nor indeed what happened there, but I pay attention to the comment in particular; ” we still have no way to tackle imbalances in the global economy… “
See how they just have no idea how the economy actually works. When the econommic rent is enclosed, we MUST get a real estate cycle. The cycle can be eradicated quite simply with the application of policies that would collect this rent as public revenue. The real estate cycle is first and foremost an economic rent issue, NOT a financial one.