For the past year, I have been predicting (wrongly) that the art market will correct. It defied the financial odds in part because the crisis hadn’t reached the super-rich and because a fresh wave of oligarchs and Middle Eastern sheiks hoisted their bidding paddles to save the day.

Now, art may be imitating life in the collector’s market, yet another sign that spending by the super-rich is suffering. Read more »

Countries around the world have to coordinate their responses to the global financial crisis and ensure their economies remain open to investment, U.S. Deputy Treasury Secretary Robert Kimmitt said Monday.

“Because the crisis is a global event, Countries should continue to coordinate their actions to face the turmoil, so the actions taken in one country do not come at the expense of another,” Kimmitt said in a speech to the U.S. Council for International Business.

“In these times of heightened uncertainty, it is imperative that we don’t turn inward but rather embrace free investment and trade,” he said.

Kimmitt also welcomed a set of best practices for sovereign wealth funds unveiled Saturday by representatives by the state-run pools of capital as well as recipient countries. Read more »

The American public’s mood is among the darkest in the past 40 years as voters remain pessimistic about their personal financial state and blame everyone within range for the financial crisis.

The latest Journal/NBC News poll shows voters’ economic worries boosting Sen. Barack Obama as he widens his lead over Sen. John McCain, 49% to 43%. (Click here for the full story).

More than three- quarters of those surveyed say the country is on the wrong track. That’s one of the highest marks in four decades — decades that have spanned two impeachments, several major wars and multiple recessions.

The economy topped the list of voters’ concerns, with six in 10 saying that issues like job losses and home foreclosures were more important than foreign policy, social and domestic concerns.

In regards to their personal economic situations, only 35% of those polled said they were confident and optimistic, while 56% said they were worried or uncertain.

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The People’s Bank of China released the following statement on Saturday morning in response to the passage of the U.S. financial rescue package. China’s financial markets opened lower Monday after being closed last week for a national holiday.

The Chinese government has been closely following the development and consequences of the U.S. financial crisis. Recently, the U.S. government’s Emergency Economic Stabilization Act of 2008 has become a focus of world attention. President Hu Jintao has on many occasions said that China hopes for stability in U.S. financial markets and the healthy development of the U.S. economy, which is in the interests of the U.S. and in the interests of China, and is also beneficial to the healthy and stable development of the global economy.

We are pleased to see that, although there were some twists and turns, the U.S. Senate and House of Representatives have finally passed the bill. We hope that this bill can be speedily implemented and achieve positive results, in order to stabilize the U.S. and global financial markets and restore investor confidence. China and the U.S. share common interests in the stability of financial markets. China is willing to strengthen coordination and cooperation with the U.S., and also hopes that countries around the world can work together to overcome difficulties and preserve the stability of international financial markets.

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If a piece of real estate sells for more than $30 million these days, the buyer is probably an ARB: “Anonymous Russian Billionaire.”

The latest ARB purchase is in Moscow. According to the web site ballerhouse, an anonymous Russian business tycoon is plunking down $99 million for a townhouse. The price sets a new record for the city. The realtor on the deal said only that the buyer is an “active businessman” who is about 40 years old but not very well known.

The 14,000-square-foot, seven-story home has five bedrooms, five full baths and three half-baths, along with an indoor swimming pool and rooftop winter garden. It’s located in the ritzy development of Christie Prudy, which means “Clear Ponds” (transparency being a rare commodity in Moscow). The development, which is within walking distance of the Kremlin, features private security, a central water purification system, indoor pools, and gyms.
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Wall Street Journal reporters Marcus Walker and Joellen Perry spoke with German Finance Minister Peer Steinbrück about the financial crisis, its fallout in Europe, and calls for a pan-European solution. 

German Finance Minister Peer Steinbrück, left, and Economics Minister Michael Glos take part in the weekly cabinet meeting in Berlin. (Reuters)

WSJ: What do you think of statements by France and others that Europe needs more than just ad-hoc bailouts, that it needs to find a systematic answer to the financial crisis?

Steinbrück: I don’t think the American package, which Congress will hopefully approve this week, can or should be applied to Europe. I don’t see any need for Germany to put 3 or 4% of its GDP in such a package without knowing what this German money which actually achieve and whether we’ll solve concrete problems with it.

The individual banking cases in Europe can have very different causes. In some cases we are dealing with a bank that has a solvency problem. In other cases like with Hypo RE we’re dealing with a liquidity problem. Such a supranational umbrella might not be helpful in these specific cases.
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