My favorite art critic is Jerry Saltz of New York Magazine. (His wife Roberta Smith from the New York Times is likely my second favorite).
Mr. Saltz has an insightful article on the state of contemporary art in the current issue. Read it here.
Art Market Watch from ArtNet.com also explores the situation in detailed article here. The article notes that Sotheby’s had to borrow $250 million from Bank of America to cover their outstanding auction guarantees of $306 million.