2 results found.
2 results found.
the week in review
May 25-May 29, 2020
a look back at this week’s essays…
Art Collecting: Learn While You Earn*
5 Reasons to Invest in Art: Investing in museum-quality art will make you richer financially… owning it will give you a richer life.
Click here to read more.
What We (Should) Want for Our Children
When my children were infants, I wanted only one thing for them….
Click here to read more.
How to Get Better at What You Do Best
The greatest challenges we face in life are obstacles that reside inside of us. When it comes to mastering a skill, the greatest challenge is not the work and time involved in acquiring it but the desire to be a master before you become one.
Click here to read more.
* fractious (5/25/20)
* serendipitous (5/27/20)
* reproach (5/29/20)
* “The only time life allows for _____is the present. Right now. In this very moment.” – Michael Masterson (5/25/20)
* “Of all nature’s gifts to the human race, what is sweeter to a man than _____?” – Marcus Tulius Cicero (5/27/20)
* “If you accept your _____ you go beyond them.” – Brendan Behan (5/29/20)
* The X in X-rays stands for electromagnetic. (5/25/20)
* Camp David was built as a retreat for President Dwight D. Eisenhower. (5/27/20)
* Every year, the Washington Post holds a contest in which readers are asked to supply alternative meanings for common words. (5/29/20)
recommended links from this week’s blog
* “Freedom Isn’t Free” – a powerful speech by President Ronald Reagan. I don’t know enough about Reagan’s career to have a strong opinion about it, but I can think of only two other presidents in my lifetime that were as good as he was at speechifying: Kennedy and Clinton. To watch the speech – which includes Reagan’s dramatic reading of “A Soldier’s Pledge” – click here.
* “New Tennis Rules” Here
* “More Than Money: The Good Life Parable” – In this short film about a well-known fable, a fisherman teaches a young businessman about life after the young man uses his MBA knowledge to explain how the fisherman could be more successful. Here
* A TED Talk by George Monbiot – lots of interesting facts about how nature works. Here
* This is wrestling…Here
I liked your essays on the Corona Economy, as you called it, especially your explanation of how the Treasury and the Federal Reserve work. For years, I’ve heard the term “printing money” and always assumed that the Treasury really printed new dollars. Now I understand how it works – how both the Treasury and also the Fed can create fake dollars out of thin air and still manage to balance their books.
One thing I didn’t understand: You mentioned that there was a difference between what the Fed did to bail out the economy after the real estate crash of 2008 and what it is doing now. What is that difference?
I put the same question to Tom Dyson when I was researching those essays. Here’s what he said:
“The difference between original QE and ‘monetizing the debt’ is in the intention behind it… its intended purpose. Mechanically, they’re identical.
“The QE they did 2008-2014 was to goose the stock market and give a tail wind to the banks. They did it voluntarily. It was somewhat of an experimental new idea put forth by Ben Bernanke.
“The QE they are doing now is out of necessity. They must do it because if they don’t the government won’t be able to finance itself and it will go broke.
“It’s a subtle distinction and one that I’m sure would be lost on most mainstream economists. Most mainstream economists probably wouldn’t even entertain the idea that the US government is insolvent if not for the Fed’s money printing.”
Tom said it is a subtle distinction, but he was being polite. It is a very important distinction and one that, after you “get it,” explains a lot.
One of the arguments against the 2008-2014 QE bailout was that it was going to be inflationary. (Increasing the money supply by a trillion dollars should, in theory, make prices rise because you have more dollars competing for the same number of goods and services.) That didn’t happen. I wondered why. Now I understand.
The larger economy didn’t inflate because almost all of those extra dollars went to the financial sector, as Tom pointed out. The financial sector did inflate. Hugely. Stock prices shot up and made Wall Street (its brokers, bankers, insurance agents, their lawyers, accountants, and shrinks, etc.) very rich. And that tidal wave of newly “printed” dollars flowed into the businesses that catered to Wall Street: luxury cars, fine art, expensive real estate, etc. But the rest of the country? Main Street? They got poorer.
Now that I understand it, it’s difficult to see it as some sort of brave fiscal “experiment.” It’s hard for me to believe that the effect of it would not have been apparent to everyone behind it (all those Wall Street insiders) that so nobly volunteered their time to conjure up and direct the bailout.
But the current QE is different. It is different not only because it’s necessary rather than optional, but also because the lion’s share of it went to the American public through stimulus checks and the PPP program. So will the next $3 trillion.
That probably will cause inflation in the general economy because most of those dollars won’t be spent on stocks and bonds but on food and clothing and other basic commodities. Those are the things that will become more expensive, which means that the productive classes – the people that pay taxes – will be paying off the government’s crazy borrowing by paying more for just about everything they buy.
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For a look back at the stock market, click here.
Art Collecting: Learn While You Earn*
“The only time life allows for happiness is the present. Right now. In this very moment.” – Michael Masterson
Investing in museum-quality art will make you richer financially as the years pass, but owning that art will give you a richer experience of life every time you look at it.
Like literature, art can make statements and tell stories. Like music, it can stir up strong emotions. And like dance, it can elevate your notion of beauty.
This is the softer side of art collecting – and this is why I like it so much.
I won’t try to convince you of it now, but I believe that the three best ways to enjoy life are through loving, working, and learning.
To enjoy the people you spend time with, you must love them. Loving them – not being loved by them – is what provides the real pleasure.
To enjoy what you do in life, you must find work that is meaningful to you or you must find meaning in the work you do. Then you must work long and hard at it with purpose.
And to enjoy the things in your life, you must acquire things that are meaningful to you or find meaning in the things you have. Then you must devote your time to learning about them and from them.
It is that last secret to enjoying life that we will be exploring here.
Art can describe things…
One type of art that I love looking at is what I call, for a lack of a better term, descriptive art. By that I mean images that describe events and situations in vivid detail. I learn from that sort of art by studying the details and trying to put them together to arrive at an understanding of what is actually going on.
For example, I love the work of the early Dutch painter Hieronymus Bosch. I like the imagery in his murals and triptychs. I particularly like his grotesque depictions of hell, showing the many ways sinners will be tortured for eternity. (To see one of my favorites, do a Google search for Hell 2 by Bosch.)
I love looking at 15th-, 16th-, and 17th-century Flemish paintings of everyday life, as well. Van Eyck… Brueghel… Rubens… give me a window into a different time, a world that no longer exists. I like to see what the people are doing, how they are dressed, and the tools they work with. (For a few examples of what I’m talking about, do a Google search for Magdalen Reading by Rogier van der Weyden, The Moneylender and His Wife by Quentin Matsys, and Hélène Fourment in a Fur Cloak by Pieter Paul Rubens.)
Art can tell a story…
Do you remember how, when you were very young, you could read a story over and over without any decrease in the pleasure it gave you? That’s how I feel when I look at the work of figurative painters like Andrew Wyeth.
I call this narrative art (again, my term) because it tells a story. And like literary fiction, I don’t like every narrative painting I see. But when I do like one, I am able to get never-ending pleasure from it. Each time I look at it, I slip into a reverie that feels both fresh and nostalgic.
For me, the best narrative art is not explicit in its storytelling. There is a story there, but it is not obvious. Its value for me lies, interestingly, in its lack of detail – the opposite of what pleases me about descriptive art.
When narrative art has too much detail about the story, my pleasure wanes the more I look at it. Thus, though I like Norman Rockwell, I can’t get the lasting pleasure from looking at his work that I get from a painting by Andrew Wyeth.
Art can make a statement…
For as long as art has existed, it has been used to make social, political, artistic, and even personal statements. I think of this as rhetorical art because its purpose is to persuade. Examples that pop to mind are Eugène Delacroix’s Liberty Leading the People, Francisco Goya’s The Third of May 1808, Pablo Picasso’s Guernica, George Grosz’s Grey Day, Frida Kahlo’s Diego and I, and Ai Weiwei’s Law of the Journey.
Then there are the genres: the nationalist poster art of WWI , the patriotic illustrations of Norman Rockwell and his imitators, WPA art, the Mexican muralists, the Chinese communist posters, the Chinese anticommunist realists, the American graffiti artists, etc.
In terms of medium, style, and expression, they run the gamut. But their purpose was the same: to promote an idea, ideology, or view of the world in a didactic way. Their work was meant to inform and enlighten, not to inspire or please.
And yet, many of them were masterfully done and have entered into the heights of the most sought after art.
I am fascinated by poster art but I don’t collect it. I do invest in the modern Mexican muralists and many WPA artists. The best pieces are out of my range. Those I visit in museums. I do not enjoy them for their messaging. I dislike overt messaging in every realm of art. What I like, usually, is the bold imagery and the colors. Yes, they are making statements. But if you enjoy the art, as I do, you can ignore those statements.
Art can stir up useful feelings…
In my collection of paintings and sculptures, there are a fair number that move me in ways that I can’t quite understand. Most of them are either abstract or impressionist, not realistic depictions of dramatic events or scenes. But the emotions they provoke are strong and consistent. One painting may stimulate a vague nostalgia. Another painting may prompt a bright feeling of hope or optimism. Yet a third painting may evoke a feeling of dread. I don’t know why.
I do know that I tend to look at these paintings on purpose – not accidentally. On another day, I might pass by an impressionist view of a silhouette of a black boat in a green lake against a yellow sky, but today I stop to look at it because I know, subconsciously, that I need a dose of the feeling it always gives me.
I might look at a small sculpture that I own by Henry Moore when I need the stimulus to be more serious about my work, or look up a photo of a sculpture by Umberto Boccioni when I need an aesthetic injection of emotional strength.
I’m quite sure that most people that rarely look at art would think that what I’m saying here is absurd or fabricated. But I’m equally sure that people that look at art regularly know exactly what I mean.
There are drugs that can probably do the same thing. But I prefer art.
Art is accessible…
As I said in the first installment of this series, you can get the emotional benefits of art without spending a nickel. Art is everywhere. Not just in museums but in restaurants and retail stores and public parks and even in the homes of your friends.
Art is also accessible in terms of education. You don’t need a college degree to benefit from it. The street sweeper in Florence, Italy, has the same capacity as the CEO of Ferrari to enjoy Michelangelo’s David. The laborer cutting grass on the Florida millionaire’s estate has the same capacity as the estate owner to admire the Fernando Botero sculpture sitting in that very garden.
Wealth, in fact, can actually be a hindrance to the enjoyment of art. I know more than a handful of wealthy people who buy art and pretend to enjoy it. They believe it gives them prestige. They fill their homes with “limited editions” from well-known artists, such as Salvador Dali and Marc Chagall. To that same end, they fill their garages with Porsches and Lamborghinis. I sometimes wonder if – aside from showing off their trophy pieces to visitors – they ever even look at them.
Having a college degree (even a graduate degree in art history) might help you talk impressively about art. It might provide you with the vocabulary to describe the technical aspects of a piece or explain its historical context. But it doesn’t give you an advantage when it comes to really seeing art or enjoying it in a personal way.
And you certainly don’t need a college degree to invest in it.
In the next installment of this series, I’ll tell you why my art collection has appreciated as much as it has. It’s the primary reason so many ordinary, amateur art lovers have acquired amazing, multimillion-dollar collections.
For now, I’ll leave you with this:
Five Good Reasons to Invest in Art
* This series of essays gives you an advance look at a new book that I’m working on, based on my experiences over the past 40+ years as a collector and investor in fine art.
This essay and others are available for syndication.
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