Why would someone winning the jackpot cause someone living down the street to go bankrupt a year or two later? The economists argued that people who feel they are poorer than their peers may spend more in a conspicuous fashion, financing their purchases with debt. But that debt will need to be repaid, potentially leading to financial difficulties and even bankruptcy.
Category: Economics
Why Not Just Print More Money?
The best alternative, Turner thinks, is his radical proposal—creating money and handing it out to entities that can spend it. He readily concedes that it wouldn’t matter much whether the newly minted money was forwarded to households in the form of bank credits, or used to finance tax cuts, or spent on building new roads and bridges. The key point is that the government would be stimulating the economy without issuing any new debt. It wouldn’t be accentuating the problem of debt overhang, or creating the conditions for yet another boom-and-bust cycle.
David Zwirner’s Art Empire
Follow-up on Bouvier’s portrait, here’s David Zwirner’s :
By one-thirty, there was no sign of the American collector. Braka and Ortuzar huddled, and Ortuzar said, “I’m on it.” At one-fifty-two, the American appeared and resumed scrutinizing the painting. “Look at him sweating,” Zwirner whispered. After a while, he gave the collector a now-or-never gesture. The man borrowed a chair, sat down, and stared at the Richter for a while, chin in hand. Braka stood ten feet behind him. Soon the American got into what appeared to be a heated discussion with Schouwink. Ortuzar approached Braka, and Braka, with a pained smile, nodded and walked away. Zwirner joined the collector and Schouwink. He spoke emphatically to each of them, slapping the knuckles of one hand against the palm of the other. Everything is negotiable. At two-fourteen, the collector shook Zwirner’s hand and bent to kiss Schouwink’s. The Richter was his, and Zwirner had earned three hundred thousand dollars, enough to cover more than half the cost of the gallery’s booth in Basel.
The Art-World Insider Who Went Too Far
The relationship between art dealer and collector is particular and charged. The dealer is mentor and salesman. He informs his client’s desires while subjecting himself to them at the same time. The collector has money, but he is also vulnerable. Relationships start, prosper, and fail for any number of reasons. It is not always obvious where power lies. Over time, each one can convince himself that he has created the other.
Bowie: The Man Who Sold Royalties and Brought Music to Bonds
Sure, this might be the last thing to come up when remembering Bowie, but hey—that’s genius :
The man behind “The Man Who Sold the World” was the first recording artist to go to Wall Street to tap the future earnings of his music, paving the way for a thriving market for esoteric securities backed by everything from racehorse stud rights to commercial washing machines.
David Bowie, who died from cancer at age 69 on Sunday, sold $55 million of bonds in 1997 that were tied to future royalties from hits including “Ziggy Stardust,” “Space Oddity” and “Changes.” Following his example were singers James Brown and Rod Stewart and the heavy-metal band Iron Maiden. Securities backed by royalties allow artists to raise money without selling the rights to their work or waiting years for payments to trickle in.
“Bowie’s bonds were as groundbreaking as his music,” said Rob Ford, a London-based money manager at TwentyFour Asset Management, which oversees 5.3 billion pounds ($7.7 billion). “Not only were they followed by a number of other artists, but they set the template for deals backed by a whole range of assets.”
And to conclude :
Bowie “changed the way people think about art and commerce,” Pullman said.
See you on Mars.
Abnormal Capitalist 