The longest bull run in a century of art-market history ended on a dramatic note with a sale of 56 works by Damien Hirst, Beautiful Inside My Head Forever, at Sotheby's in London on September 15th 2008. All but two pieces sold, fetching more than PS70m, a record for a sale by a single artist. It was a last victory. As the auctioneer called out bids, in New York one of the oldest banks on Wall Street, Lehman Brothers, filed for bankruptcy, starting the most severe financial crisis since the 1920s. The world art market had already been losing momentum  for a while after rising confusingly since 2003. At its peak in 2007 it was worth some $65 billion, thinks Clare McAndrew, founder of Arts Economics, a research firm -- double the figure five years earlier. Since then it may have come down to $50 billion. But the market generates interest far beyond its size because it brings together great wealth, enormous egos , greed, passion and controversy in a way matched by few other industries. In the weeks and months that followed Mr. Hirst's sale, spending of any sort became deeply unfashionable. In the art world that meant collectors stayed away from galleries and salerooms. Sales of contemporary art fell by two-thirds, and in the most overheated sector, they were down by nearly 90% in the year to November 2008. Within weeks the world's two biggest auction houses, Sotheby's and Christie's, had to pay out nearly $200m in guarantees to clients who had placed works for sale with them. The current downturn in the art market is the worst since the Japanese stopped buying Impressionists at the end of 1989. This time experts suppose that prices are about 40% down on their peak on average, though some have been far more volatile  . But Edward Dolman, Christie's chief executive, says, "I'm pretty confident we're at the bottom." What makes this fall different from the last, he says, is that there are still buyers in the market, while in the early 1990s, when interest rates were high, there was no demand even though many collectors wanted to sell. Christie's earnings in the first half of 2009 were still higher than in the first half of 2006. Almost everyone who was interviewed for this special report said that the biggest problem at the moment is not a lack of demand but a lack of good work to sell. The three Ds -- death, debt and divorce -- still deliver works of art to the market. But anyone who does not have to sell is keeping away, waiting for confidence to return. What is mainly discussed in the passage?
Art market in decline. Up-to-date art auctions. Volatility of art prices. Shifted interest in arts.