Here’s a great snippet on the “behind-the-scenes” of the art world. It is really amazing to see all of the ultra-rich finances come to light these days. There was so much leverage and the value of collateral is seemingly so fickle!

As art exploded in price, both banks and owners wanted to tap into the value. Paintings were used in the same way as people used their homes–as giant ATMs spitting out cash as long as the market went up.

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But there are two problems with art: it’s highly cyclical and it can disappear–suddenly.

Art Loans Get Ugly. via Wealth Bulletin

PS – The author of the article wrote RICHISTAN, a book about the lives of the wealthy. Our company/website,  estatejobs.com, is mentioned in one of the chapters!