Professor Nouriel Roubini, the famous NYU economist also known as “Dr. Doom” for his predictions about the housing crisis, sounded off on the art market at Davos, the Financial Times reports.
From the FT:
“Whether we like it or not, art is used for tax avoidance and evasion,” Prof Roubini said. “It can be used for money laundering. You can buy something for half a million, not show a passport, and ship it. Plenty of people are using it for laundering.”
Which is not news, of course, but efforts for greater transparency have not always been successful in the past. Just last year The New York Times detailed those efforts and their failures:
But nine bills submitted in Albany over the years to ban the practice failed. So today, in a city that seeks to regulate soda consumption, chandelier bidding remains 100 percent legal. The law says auctioneers can announce such bids as long as they stop before reaching a sale item’s reserve price, the confidential minimum amount that sellers have agreed to accept.
Just one of many examples of the difficulties in regulating the art market. Read more on Prof. Roubini’s comments at the FT.