Record art sales, no problems here

http://www.unz.com/isteve/billionaires-and-art/

In just two weeks this month in New York, the auction houses Sotheby’s and Christie’s sold over $2 billion in art, a record for major New York fall auctions. …

The lofty sums stunned even longtime art market watchers. “It’s phenomenal,” said Michael Moses, a founder of the Mei Moses Fine Art Index, a widely followed measure of art prices, and a retired professor at the New York University Stern School of Business. “At the Christie’s postmodern and contemporary sale, the average compound return was 20 percent annualized. That’s amazing.” …

This month’s record sales left some dealers and collectors talking about irrational exuberance and a potential bubble, especially in the soaring contemporary-art market. But Evan Beard, who leads Deloitte’s art and finance practice in the United States, said he didn’t agree. “If you were seeing second-rate works selling for huge values, then you’d say there’s dumb money out there,” he said.

lol laughing rdj tony stark heehee haha

“But the works selling for these high multiples are important works that art historians have deemed innovative and have had influence. People want to own original works of genius.”

…He noted that it was contemporary and postwar works that had shown the biggest gains. “The single most surprising change in the art market is the relative increase in the value of recent art,” said David Galenson, a professor of economics at the University of Chicago who has done groundbreaking research into valuations in the art market.

More money than sense. New Money. A fool and his money are soon parted, etc.

While some art historians, curators and dealers bemoan the emergence of fine art as just another economic asset class, “art and money have always been joined by an umbilical cord of gold,” Professor Galenson said. “The Renaissance ideal has gone the way of the dodo bird. I say, Get over it. Steven Cohen doesn’t make any pretense of being an art history major. Maybe he’s the Andy Warhol of collectors.”

I love this suit and everything about this demeanour

In a recent survey of art professionals by Deloitte, 76 percent said collectors viewed art, at least in part, as an investment — up from 53 percent two years ago. And 72 percent said their clients’ primary reason for buying art was related to the “social and networking scene” and the status associated with buying art, compared with 59 percent in 2012.

emotion, great reason behind investment decisions

Given the money involved, it probably shouldn’t be surprising that bankers are treating art like any other asset class, which, in turn, is helping drive up prices and create a more liquid market. More banks are lending against art as collateral. Some are even starting to create collateralized debt obligations with art as the underlying asset — much as bankers packaged subprime mortgages before the financial crisis.

As the commenter says, This will end well.

The soaring prices are being driven by market forces rather than any aesthetic or artistic awakening, Professor Galenson said. “Aesthetics have nothing to do with it.”

No shit.

Commenter: That was the conclusion of Tom Wolfe’s “The Painted Word” in 1975, that the real creative artists weren’t the guys holding the paintbrushes, but the critics holding the pens who explained why you were supposed to care about one guy and not about another guy.

^ And that is why it is doomed. Downward spiral.

“A lot of contemporary art is aggressively ugly,” Professor Galenson said. “That doesn’t matter in terms of its value.”

It bloody will.

Commenter: We live in a world of 7 billion people so there are 7,000 individuals with one-in-a-million artistic talent. There are a lot of very talented artists out there right now making a decent living selling beautiful art to millionaires.

First part is true, second is not. That is the problem.

C: So maybe that helps explain the mystery of why billionaires are so much more enthusiastic about contemporary painting these days than non-billionaires: because the paintings are just embodied metaphors for buying and selling. And billionaires love buying and selling. Buying and selling has been very very good to them.

A product without value.

The Myth of Modern Art Markets

TLDR: The majority of people hate the style. Justly.

http://drawingacademy.com/contemporary-art-bubble?awt_l=9WmjM&awt_m=3vdcDndjTdpSnqq

Until the 15th century, fine art had sacral and utilitarian purpose. No artist was producing paintings for the pure aim of being admired as a subject itself. The church was the main and only client able to afford marvelous masterpieces intended to glorify the commissioner and religious faith. It was a status quo up to the time when Italian bankers and republic rulers came into play. With new money came a new agenda for fine art. No longer was art to be sacral, it was liberated to fulfill another meaning – to become an object of admiration, the measure of status.

Fine artists obliged with readiness. Before that, no artwork was created because an artist wanted to simply express himself, all works were commissioned and the client had his say on what and how to paint.

The Renaissance brought something new to the art marketplace. Sacral art turned into fine art. It became an object that could be valued accordingly to the fine artist’s talent. The value of the artwork stopped being measured by its size, amount of and price of art materials, and time spent by the artist.

The art became a commodity fetishism, it was idolized as the object itself, it was worshiped for the ‘power’ people assigned to it. Art workshops, run by professional fine artists, with the help of numerous apprentices, started to produce artworks that could be purchased not only by kings and church officials, but also by the middle class.

who ruin literally everything pure

The demand of those private citizens shaped the fine art market for the next 500 years. Art styles came and went, fashion was being changed from generation to generation by new consumers, but art managed to stay civilized and fulfill its primary purpose – to be a beautiful object that deserved to be admired, loved and worshiped.

There has been always progress in fine art. New generations of fine artists were coming and competing for the attention of clients. Those who were brave enough to reject old styles and create new ones left many ‘isms’ in the history of modern art: impressionist, cubism, modernism, supermatism, and so on. Seeking awareness by any means and making bold and revolutionary statements, brought many artists into the spotlight of the media. Somehow traditional art skills started to be replaced with creativity.

talent is equal, an overturned chair is equal to the Mona Lisa

After the Second World War, art had entered its contemporary phase. The market ideology was masterminded and financially fueled by those whose intention it was to use contemporary art as Cold War undercover propaganda weapon. Billions of dollars were invested into the promotion of contemporary art. Multiple private foundations became subsidized, funded and ruled by one governor – The Central Intelligence Agency of the United States federal government.

confirmed

These foundations were and still are actively advocating and pushing contemporary art to the public. The main objective of this activity is to destroy traditional ideals of fine art and superimpose new values and morals of life. The main strategy of achieving this goal is brainwashing the public via mass media and cultural events.

If they say long enough that a piece of garbage is art, then gradually people will start believing it. If someone buys that garbage for an insane sum of money, then it becomes officially confirmed as the greatest art ever created.

The price of artwork was no longer linked to the talents or skills an artist displayed. The price was created by inflated demand, fueled by PR and marketing efforts invested in the promotion of a particular artist. The contemporary art marketplace had shifted the focus of attention from a particular masterpiece to an artist’s name. The painting, drawing or sculpture itself becomes less important as the name of its creator….

cultural QE, reducing the value of real art

Contemporary artists in Europe were deprived of conventional fine art education – the vast majority of art students graduate having no classical drawing skills, whatsoever. Today, there is only handful of fine artists around Europe, who’ve developed their skills to the level equal or greater than a mediocre fine artist of the Renaissance.

a single tear michael fassbender crying

In fact, a new saying has developed: “He is not a contemporary artist, he can draw.”

There is a reason why new artists cannot draw. Their teachers have graduated a decade ago; they are not able to teach what they have not learned from their teachers who graduated two decades ago. Instead, they lecture how to be creative.

I cannot cover any more of this wonderful article, it’s too distressing.

South Africa on the brink of recession

http://www.telegraph.co.uk/finance/financialcrisis/10859255/Brics-malaise-deepens-as-South-Africa-nears-recession.html

What if the perception is true or proven? huh?And this has been predicted for a while too. http://www.forbes.com/sites/jessecolombo/2014/03/19/a-guide-to-south-africas-economic-bubble-and-coming-crisis/