A broken art market

Art and the art markets. You might think they have little in common with each other.

How modern art serves the rich
Then, on October 18, 1973, in front of a slew of television cameras and a packed salesroom at the auction house Sotheby Parke Bernet, they put 50 works from their collection up for sale, ultimately netting $2.2 million—an unheard of sum for contemporary American art. More spectacular was the disparity between what the Sculls had initially paid, in some cases only a few years prior to the sale, and the prices they commanded at auction: A painting by Cy Twombly, originally purchased for $750, went for $40,000; Jasper Johns’s Double White Map, bought in 1965 for around $10,000, sold for $240,000. Robert Rauschenberg, who had sold his 1958 work Thaw to the Sculls for $900 and now saw it bring in $85,000, infamously confronted Robert Scull after the sale, shoving the collector and accusing him of exploiting artists’ labor. In a scathing essay published the following month in New York magazine, titled “Profit Without Honor,” the critic Barbara Rose described the sale as the moment “when the art world collapsed.”

Of course things didn’t stop there. And as the scale of the sums involved grow,s the art markets feel more like a form of performance art themselves.

$450 Million Leonardo da Vinci Becomes Most Expensive Artwork of All Time
After a $286 million bid from de Poortere, Rotter warbled out a $300 million counter, tying the price that billionaire hedge fund manager Ken Griffin reportedly paid for Willem de Kooning’s Interchange (1955) in 2015, the most expensive art transaction ever publicly reported until Christie’s Wednesday sale.

“Let’s see if that’s done it,” the auctioneer chimed.

De Poortere’s client was not finished, continuing up and up in mostly two- and three-million-dollar increments, until the price hit $370 million. The sum would have been more than enough to take home every other lot offered at Christie’s on Wednesday night. For the very next bid, Rotter called out $400 million, and that was the end. The room clapped, gasped, and laughed, the way one does when seeing something simultaneously historic, unbelievable, and more than a little crazy.

Theatre, where even its own advertising is wanting to be considered art, complete with the obligatory Instagram account.

Droga5’s Sublime Ad for Christie’s Captures the Power of a Leonardo Painting Without Even Showing It
Sometimes, not showing an artwork can be as powerful as showing it. This was true in Grey London’s story-rich campaign for the Tate Modern back in 2015. And it’s especially true of Droga5’s lovely, almost transcendental new spot for auction house Christie’s—which promotes the upcoming sale of a long-lost Leonardo da Vinci painting by not showing it at all.

Instead, the spot focuses on people’s reactions to the painting. And they are fascinating to watch.

[…]

This postmodern turning-the-tables idea comes full circle through the extension of the campaign into Instagram. While so many museum-goers are now Instagramming the artwork they see, the Salvator Mundi is Instagramming the people who come to see it.

Photos of the visitors have been documented on Instagram @thelastdavinci. Each portrait is captioned with the first name of the visitor and the time of their visit, which Droga5 says is “a format reminiscent of a biblical scripture citation.”

Here’s a perspective on art buying I hadn’t considered before.

What baseball taught me about the art market
Can we provide similar, easy-to-access data for the art market, and would that bring new buyers and sellers into play? It’s said that art buyers are often driven by emotion. Whether or not that’s true, we should also welcome the engagement of participants who would like data to lessen the risk of their emotional decisions. Some worry that more data in art will devolve art into something akin to an asset class, swarmed by bankers. However, I believe art buyers will continue to be guided by what they love and which art resonates with them deeply, and that data insights will only help to strengthen their engagement and confidence when buying or selling.

Wanting to get involved in the art markets but struggling to raise the millions of dollars needed? There’s an app for that.

Can Sedition create a marketplace for digital limited edition art?
The platform aims to encourage people who might not be able to afford these artists’ original pieces to become collectors of digital editions which they can access via their mobiles, tablets, PCs and connected TVs. With each purchase comes a certificate of authenticity, which — crucially — entitles the owner to resell the works at a later date if they so wish.

And yes, you can include me in that.

You think your work life balance is tough?

You start off expecting to be amused by the ridiculously overburdened bike, but end up saddened by that overburdened mum.

A migrant worker’s daily circus-like balancing act is a surreal reflection of China’s economy
As China shifted from a small-farm economy to an industrial powerhouse over the past generation, there’s been an enormous demographic shift, with some 282 million migrant labourers splitting their time between cities and their rural homes. For Wo Guo Jie, who makes her living in Shanghai collecting styrofoam boxes from markets and reselling them to a seafood wholesale market, this transformation has meant spending as many as three years at a time away from her family farm, where her children sometimes barely recognise her when she returns.

Capita? As in SIMS Capita?

Here’s one of several articles about Capita’s profit warning announced today:

Capita shares plunge 35% after outsourcing giant announces shock profit warning and rights issue
New chief executive Jonathan Lewis, who took up the role on 1 December, said “significant change” was needed to get Capita back on track. He said an “immediate priority” was to strengthen the group’s balance sheet, with plans to raise as much as £700m in a rights issue, as well as slashing costs after finding “significant scope” for savings and aims to sell off unprofitable businesses.

Some have the shares dropping by as much as 45%, but this headline caught my eye:

Capita collapse could create bigger headache than Carillion’s demise
A potential collapse of Capita could create an even more of a headache for the public sector than Carillion since it is the biggest supplier of local government services in the UK, according to Tussell data. “If Capita were to fail the ensuing political fallout would make Carillion look like a tea party,” said Michael Hewson, chief market analyst at CMC Markets.

Too big to fail, surely?

Getting lost trying to follow the money

I tried to explain to my better half what Bitcoin and the blockchain were all about. My explanation was muddled, to say the least. Here are some articles that I need to re-read, if any of it’s going to sink in.

Bitcoin and cryptocurrencies – what digital money really means for our future
[T]his speculative bubble could end with a crash so severe that it destroys faith in the entire sector, driving the investors out, bankrupting the miners who’ve spent thousands or millions on single-purpose hardware that requires a high bitcoin price to turn a profit, and leaving cryptocurrencies as a technological dead-end alongside cold fusion and jetpacks. But maybe things will continue as they have done for the past five years. Cryptocurrencies’ actual use stays stable, mostly illegal, largely underground, and completely disconnected from a market price that fluctuates wildly based on the whims of a class of financial speculators with little link to the ground truth. Instability, it turns out, is an oddly stable and predictable state of affairs.

Kodak, the blockchain and cryptocurrency: how Kodak is tapping into technology
Kodak’s platform takes the whole photography and imaging industry to a new level with the features of distributed ledger technology like encryption, decentralization, immutability, transparency, and security being utilized to create a digital ledger of ‘ownership rights’ for photographers. The digital ledger will secure the work of photographers by registering work and then allowing them to license the same for use (buy/sell) within the platform. KODAKCoin will be the currency to operate on the platform and will allow participating photographers, both professional and amateur, to receive payment for licensed work almost instantly via Smart Contracts.
economics technology photography

Bitcoin’s energy usage is huge – we can’t afford to ignore it
The economic outcome of all of this is laid bare in a Credit Suisse briefing note published on Tuesday: the network as a whole will reinvest almost all the bitcoin paid out as mining rewards back into its electricity consumption. (Credit Suisse’s ballpark figure assumes that 80% of the expenses of bitcoin miners are spent on electricity).

Blockchain’s broken promises
Boosters of blockchain technology compare its early days to the early days of the Internet. But whereas the Internet quickly gave rise to email, the World Wide Web, and millions of commercial ventures, blockchain’s only application – cryptocurrencies such as Bitcoin – does not even fulfill its stated purpose.

Tackling loneliness

Steps from the government, as well as research from the Co-op Group.

May appoints minister to tackle loneliness issues raised by Jo Cox
“I want to confront this challenge for our society and for all of us to take action to address the loneliness endured by the elderly, by carers, by those who have lost loved ones – people who have no one to talk to or share their thoughts and experiences with.” May paid tribute to Cox’s work, saying she hoped the initiative would aim “to see that, in Jo’s memory, we bring an end to the acceptance of loneliness for good”.

Loneliness is harming our society. Your kindness is the best cure
The commission will be outlining its thinking at the end of the year with requests for government and business. But we’ll also be explaining how we all have a role to play. Jo knew this. She said that tackling loneliness is “something many of us could easily help with – whether looking in on a neighbour, visiting an elderly relative or making that call or visit we’ve been promising to a friend”.

What loneliness costs UK employers
Our latest research shows 4 key ways that loneliness is a financial cost to employers. 1. Sickness absence associated with ill health effects of loneliness costs £20 million. 2. Lost working days caring for someone suffering from the ill health effects of loneliness costs £220 million. 3. Reduced productivity costs related to lower wellbeing from loneliness are £665 million. 4. Costs associated with increased voluntary staff ‘turnover’ are £1.62 billion.

A link-baity article about universities and drug gangs

A thought-provoking read, in the style of Freakonomics, about pay structures and working conditions within higher education. The similarities to drug gangs catches the eye, of course, but it’s interesting to read how this compares across countries.

How Academia resembles a drug gang
Academic systems rely on the existence of a supply of “outsiders” ready to forgo wages and employment security in exchange for the prospect of uncertain security, prestige, freedom and reasonably high salaries that tenured positions entail. Drawing on data from the US, Germany and the UK, Alexandre Afonso looks at how the academic job market is structured in many respects like a drug gang, with an expanding mass of outsiders and a shrinking core of insiders.

Your lifestyle has already been designed

“But the 8-hour workday is too profitable for big business, not because of the amount of work people get done in eight hours (the average office worker gets less than three hours of actual work done in 8 hours) but because it makes for such a purchase-happy public. Keeping free time scarce means people pay a lot more for convenience, gratification, and any other relief they can buy. It keeps them watching television, and its commercials. It keeps them unambitious outside of work.”

http://www.raptitude.com/2010/07/your-lifestyle-has-already-been-designed/