… of the art market. What were you thinking of, you dirty wee puppy? I’ll deal with you later. No, according to a University of Luxembourg study, the international art market is in a “mania phase” and the bubble is going to pop any time soon, leading to a “severe correction”. Countdown starting right now to an art exhibition called either Severe Correction or Mania Phase.
The “zombie formalist” artists (i.e. makers of art as an asset class, devoid of narrative, representation, politics, ideology, etc.) and their handlers are partly to blame, but as the gentleman who created the term rightly says, and as I have also said in a various ways over the past few years about a hundred bloody times: “Since the entire market is entirely irrational, it can’t be rationally interpreted.”
Nonetheless, it’s in the nature of financial bubbles that any talk of the bubble bursting often brings about the very same pop feared by beneficiaries of the bubble, which probably wouldn’t happen if nobody was talking about the bubble bursting… and so forth until your head bursts too.
The Guardian article also contains this nugget:
“Levin said the bubble was inflating in part due to the prevalence of high-end money laundering being done through art, and how the two have come to affect one another. Buy art in one country and pop it in the private jet, the theory goes, and by morning you’ve moved $100m between tax jurisdictions.”
Again, QED. Exactly what I’ve said on this blog and at various talks and conferences on numerous occasions, sometimes to self-righteous splutters of indignation or shocked disbelief. On this blog we know some people who might “pop” art between tax jurisdictions or run art galleries to launder their dirty money, don’t we readers?