An economic bubble is trade in high volumes at prices that are considerably above the intrinsic value of the product or service in question. In other words an economic bubble is the exchange of products or assets at inflated prices. Some of the more notorious economic bubbles in recent years have been in assorted property markets – with crashes in the value of property occurring from 2005 onwards in various markets around the world. The US property bubble in particular – and the sub-prime mortgages tied to it – sparked the current financial crisis and could also be said to have burst the banking and financial industries bubble.
Fearing that stocks and bonds are too volatile some investors have diversified into collectibles that range from old master paintings to expensive wines by way of rare coins and stamps. In a capitalist economy there is no safe investment – speculative investment works on the basis that what goes up must come down. Blue-chip art is currently over-valued and will deflate at some point – the question is simply when…
And while you’re at it don’t forget to check – www.stewarthomesociety.org – you know it makes (no) sense!
Comments
Comment by Danny Pockets on 2012-08-25 23:47:13 +0000
the collapse of thee art market is the beginning surely?
Comment by mistertrippy on 2012-08-26 00:25:37 +0000
I think so – the difficulty is the very small club of super rich involved…. the runs take longer to start on relatively smaller markets…
Comment by Danny Pockets on 2012-08-26 00:45:09 +0000
oh well, we’ll just get going without them, they won’t notice anyway….
Comment by Lucy Johnson on 2012-08-26 04:05:30 +0000
The whole thing is tacky as hell. That is all I have to say at the moment. But thanks for another interesting post.
Comment by Michael Roth on 2012-08-26 16:16:46 +0000
Unfortunately, my bubble burst years ago.
Comment by Kenneth Davidson on 2012-08-26 17:54:52 +0000
fucking shoreditch
Comment by David Moss on 2012-08-26 19:46:11 +0000
Fucking Shoreditch by Thee Art Markets.
Comment by Kes Forrester on 2012-08-26 20:01:17 +0000
?’La Belle End’ would be a good name for an art gallery.
Comment by Kenneth Davidson on 2012-08-26 21:26:13 +0000
blue note capitalism
Comment by Douglas Park on 2012-08-26 22:26:43 +0000
what if bursting bubbles / collapsing etc becomes a sector / industry / investment / bet fodder?
Comment by Kenneth Davidson on 2012-08-26 23:06:27 +0000
that is known as “risk management”, hedge funding & 5th generation insurance. fucking blue note capitalism
Comment by David Moss on 2012-08-26 23:26:44 +0000
and all the project spaces re bubble back into pie and mash shops
Comment by Danny Pockets on 2012-08-26 23:44:55 +0000
aha! as they say round my way; “It’s all a terrible circle.”
Comment by Kenneth Davidson on 2012-08-27 00:00:34 +0000
festival of five pound capitalism
Comment by mistertrippy on 2012-08-27 19:09:29 +0000
Will that be taking place at Poundland after the effects of stagflation from the current recession really kick in?
Comment by Willie Small on 2012-08-27 21:33:32 +0000
Stick to bubble and squeak – the only risk is you bursting yourself if you eat way too much of it!
Comment by Charles Thompson on 2012-08-27 23:09:16 +0000
You’re having a bubble bath… art is priceless so you can’t beat that price till it hurts!
Comment by The Man in the Iron Mask on 2012-08-28 12:03:09 +0000
What’s in your bubble bath that it hurts so – razor blades?… But let us get out the razor blades, hammers and flame-throwers and use them to good purpose – against Art. Yes, the capitalist market has given art a pompous capital letter. You thought God was dead? No, he/she/it has been resurrected as a painting/rotting shark/demirep’s bed. Search and Destroy. Kill a ‘creative’, burst the bubble of religiosity. All hail a second wave of iconoclasm to match the 16c first wave when Protestant headbangers smashed the religious fetish objects of the Catholic Church. [Yes, I know: I can’t count waves as there was some image-breaking action in Byzantium.]… Do not fear the death of art because it’s of no consequence like God – who Lautreamont likened to a pubic hair floating in a chamber-pot under the bed of a Parisian prostitute.
Comment by mistertrippy on 2012-08-28 17:21:46 +0000
Or as Black Mask/UAWM put it back in the sixties – “Art is dead baby, burn the museums….”
Comment by Chus Martinez on 2012-08-28 17:53:05 +0000
Art is sanctioned pornography!