The following quote is from Federal Reserve Chair Ben Bernake when discussing the potential 700 billion dollar Wall Street bailout. I know it doesn't really sound appraisal related, but he is talking about value at auction.Bernake was asked if any of the $700 billion would eventually come back to the taxpayers, he replied with an art auction analogy.
Bernake stated "Just as when you sell a painting at Sotheby's, you don't know what it's worth until the auction is over."
Hmmmm. So Bernake is saying he does not know if any of the taxpayer money will ever be repaid. Regarding the analogy, I think many appraisers (and probably a few economist) might disagree with the above statement from the chairman of the Federal Reserve Board. Professional appraisers would be able to gauge the value and predict a selling price based upon previously sales and research. And how about the differences between price and value. I guess the Fed Chair doesn't get it, or if he does, he does not wish to be on record.
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