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If Pierre's paintings are being exchanged regularly by a bunch of hedge fund guys for $20 million each, isn't $20 million the market price of a different, arbit
by duado 8y ago
If Pierre's paintings are being exchanged regularly by a bunch of hedge fund guys for $20 million each, isn't $20 million the market price of a different, arbitrary, painting from Pierre?
It isn't really a problem for other assets because they don't have the museum donation market that's key to the scheme working. You can't find a charity who is looking for superyacht donations.
- eeZah7Ux 8y ago> isn't $20 million the market price Not at all: to have a "market" you need buyers, sellers and goods to be fungible. In your example buyers and sellers are only 0.000001% of humanity: other people cannot afford to play this game. Also the goods are unique. Brand new paintings would not be sold by the author him/herself at that price 99% of the time. They skyrocket in value only when sold between billionaires. https://en.wikipedia.org/wiki/Market_(economics) https://en.wikipedia.org/wiki/Market_(economics)