Monday, June 20, 2011

To bubble ore not to bubble, ...

"The value of art, as the old saying goes, is only what the next person is willing to pay for it. A maxim that is eerily similar to the definition of a financial bubble."
Art News Worldwide

"The value of its sales (contemporary art: note) in China increased by 983 per cent in one year (2005-06). In Russia they rose 2,365 per cent in five years (2000-05), while its stock market increased by “only” about 300 per cent."
Prospectmagazine, 20 12 2008

"Bubbles are driven by the behavior of a perennially optimistic market participants (the fools) who buy overvalued assets in anticipation of selling it to other speculators (the greater fools) at a much higher price."

The contemporary art market can not be compared with others, in my opinion, because of the lack of transparancy. Where is the energy coming from?

Nouriel Roubini on Twitter



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