In this article, I argue that there exists a dangerous positive feedback loop between land value, embodied in house prices, and the banking system which lies at the heart of modern economies. In response, policies are required to capture more land value for the public good, perhaps through alternative forms of taxation or the creation of public land banks, to help minimise speculative investment in an effort to reduce rising inequality. Different types of banks focused on business lending may also be required. The UK and German economies are compared to shed light on alternative policies. Andrew Haldane, the Bank of England’s free-thinking Chief Economist, characterised the relationship between modern banks and the state as a ‘doom loop’. Once banks …