Last month, a Chinese cryptocurrency hustler, under fraud investigation in the U.S., reportedly paid $6.2 million for a banana which he then ate (photo, left; see story here).
Of course, he didn’t buy a $6.2 million banana; he paid $6.2 million for publicity promoting his crypto trading business.
That is, if he paid anything at all. Who auctions a banana? I smell a conspiracy where he’s not only the buyer, but also the seller, and actually bought the banana for the grocery price of 89 cents a pound.
Meanwhile a bidder paid $28 million for a pair of sequined slippers, one of many pairs worn by Judy Garland in the 1939 movie “Wizard of Oz,” of which four pairs survive (photo below, see story here).
This pair of Oz slippers, formerly owned by a collector, could make a little money as a carnival attraction, but not $28 million. The market value here is for a collectible.
Some collectors think of their collectibles as investments, the idea being someone will pay even more for it in the future. This is a manifestation of the “greater fool theory,” as in “I’m a fool to pay this much, but some bigger fool than me might pay even more.” This thought process can acquire a life of its own, like a snowball rolling down a snowy hill.
It does have some show-and-tell utility. You could put it in a glass case in the foyer of your mansion, and impress visitors with it. You point to it and say: “Those are Dorothy’s original slippers! From Oz!” And your guests say “Wow!” and crowd around the glass case.
It might be worth $28 million to make a big splash with the right people. Say, in Hollywood; or in Washington D.C.’s cocktail row. Dorothy’s slippers work a lot better for this purpose than a banana, especially if somebody ate the banana.
I’m working really hard to rationalize this. For most people down here looking up there, this is nothing more than obscenely wealthy people obscenely flaunting their obscene wealth.
Typical reaction in ordinary social circles could range from “some people have too much money” and “some people aren’t paying enough taxes” (Democrats) to “it’s their money, they can do what they want with it” and “I wish I could spend like that” (Republicans).
But to me, they’re just an old pair of sequined-covered slippers like you’d find under your daughter’s bed after she grows up and leaves home. I’m pretty sure Judy Garland’s feet left sweat stains and smelled just like everybody else’s. That’s worth money? Nah, not to me, even if I was obscenely rich and not paying any taxes.
