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comment by kleinbl00
kleinbl00  ·  4828 days ago  ·  link  ·    ·  parent  ·  post: 10 Most Expensive Artworks Ever Sold
Economists have all sorts of wonderful phrases. The one I like for this is "unhinged from fundamentals."

This lovely phrase is usually used whenever a stock is trading at some irrational level that no sensible person can explain. To say that, for example, Facebook is "unhinged from fundamentals" means "there's no fucking way Facebook has an actual market value ten times as high as Google."

Note that people still trade on things that are "unhinged from fundamentals." They just acknowledge that the market is now displaying "irrational exhuberance" (thanks, Greenspan) and that no matter how many annual reports you read, you will not be able to accurately predict value because "accuracy" has become passe.

There are two prevailing sentiments about modern art. Doesn't matter who you ask, doesn't matter where you ask. Anyone, from lay person to expert, will tell you two things:

1) it's expensive

2) it sucks

These two sentiments are mutually exclusive. There will be a correction. I don't know what form it will take, but it will take form.