EC The Bubble In Modern Art

Modern Art Goes Bananas As the Money Supply Inflates

 

We don’t want to discuss the artistic merits of modern art, except to say that we are not averse to it at all. In other words, we personally like quite a bit of modern art, regardless of the field. Paintings, sculptures, literature, music, we find stuff that speaks to us everywhere. Of course we are not completely uncritical, we merely want to point out that art doesn’t end sometime in the 19^th century for us. We even like quite a bit of that modern ‘classical’ scratchy music that is on the receiving end of much contempt elsewhere. As it were, de gustibus non est disputandum.

 

 

Jeff Koons – ‘Balloon Dog (Orange)’

 

 

However,  we differ with many supporters of such art insofar that we do not believe it should be in any way subsidized by the State. We also believe the habit of sometimes forcing concert goers to listen to, say, Helmut Lachenmann’s works by sandwiching them between pieces by Mozart and Beethoven is a slightly questionable practice – even though we like itpersonally. We are well aware though that most Mozart fans are probably only clapping perfunctorily when confronted with something like this.

However, our focus here is actually on how the money supply inflation of recent years has been mirrored in the prices paid for modern art, which are becoming ever more absurd. A first wave of record prices was paid in the 2003-2008 bubble, but these records have been shattered over the past few years, especially in sculpture. A few examples are shown below.

 

The First Bubble Wave (2005-2008)

If you are a sculptor, you’re a real winner if your name is Alberto Giacometti. Regardless of the phase of the giant bubble we are in, your works will fetch record prices.

 

 

‘Grande femme debout II’, by Alberto Giacometti – sold for $27.4 million in 2008