November 2008 was pure living hell for the art auction houses. The bottom had just fallen out of the market ... and they were still saddled with pieces for which they'd offer guaranteed minimums. This is exactly what happened with Roy Lichtenstein's "Half Face with Collar."

The 48 square inch painting went under the gavel at Sotheby's almost a year ago, with the seller, Italian art dealer and collector Gian Enzo Sperone, protected by a $15 million minimum by the house. Now, it's on display at FIAC, right next to Andy Warhol's "Green Disaster," in the Projet Moderne section.

For many, the question of who owns the Lichtenstein painting has been raised. Is the fact that it's hanging as an entry from the Gagosian Gallery meaningful? A source at FIAC tells Bloomberg News that it is: "Larry owns it and it's definitely for sale."

It would be poetic, of course, for the piece to fetch the $15 million it failed to reach last November, but for now, all we can do is wait for the result (if any).

Collectors are looking and thinking. They might take action, but it's still too soon to tell. The action at Foire Internationale d'Art Contemporain (FIAC) in Paris is deliberate: nobody's rushing to put their cash on the table. However, there are signs that some pricey and prestigious pieces may sell.

Last week, a painting by Piet Mondrian was put on reserve, at a price between $30 million and $40 million. One of Pablo Picasso's works was reserved, as well, at $24 million. Back in the art boom, these pieces would have been snapped up already, but dealers are saying that it's taking longer to complete sales at FIAC this year than last year. Even billionaires need convincing in this market, it seems.

Also, there's a greater desire to stay under the radar. Whether it's to maintain some privacy or hide the fact that they have the means to spend more than they like, some owners and buyers are turning to private sales. Bargains, thus, won't make it into the public record – sparing sellers the embarrassment and preventing the other holdings of all collectors from sustaining a measurable decline in value. If premiums are paid, buyers won't have to reveal that they have the cash to pay more, preventing prices from increasing broadly.

Don't call it a comeback ... well, because the bar's been lowered. At the post-war and contemporary art sales last Friday, both Christie's and Sotheby's nearly hit the high end of presale estimates. This marks a distinct turn from earlier this year, when the auction houses couldn't even reach the lowest ends of reduced expectations. Any comparison to last year is made difficult by the fact that both houses combined their auctions with Italian art sales. So, they open with "close to the top end of the range" and can't really be evaluated on anything else.

Values for the pieces are off -- that's pretty well known (especially to anyone trying to sell right now). Sotheby's brought in $32.8 million at the sale -- which also had Arab and Iranian art on top of the contemporary and Italian lots. Christie's picked up $27.7 million, with more U.S. buyers than expected.

We're again seeing an engineered reality that's driven by performance relative to presale estimates -- this is all the hint we nee to know that the art market is still pretty far from recovery. But, as we know, it could have been much worse. Hell, we saw how bad it could be for most of this year.

Proximo Spirits, Inc. and 1800 Tequila have announced the release of the second collection of limited edition Essential Artists bottles designed by 11 up and coming artists from all over the US, and one "celebrity artist" (Shepard Fairey's Studio Number One). The 11 designs were gathered from over 15,000 online submissions and were selected by 1800 Tequila. The 12th special-edition bottle is by Studio Number One a group of rising star designers headed by artist Shepard Fairey who gained global notoriety this year for his Obama "Hope" design. Artist StevOramA's design was the $10,000 Grand Prize Winner and his design has been given a starring role in the series. Other artists include Ian McGillivray, Nickelyn Reames, danyol, Leyland "Lee" DeVito, Danielle Salinas, Chad Shore, Mark Sweeney, Branden Tintiangco, Chuck Trunks, and Michelle Villasenor. To find the bottles, which retail for $24.99 each, consumers can enter their zip codes into the "Liquor Locator" on 1800Tequila.com to find the series in their area. The contest will re-launch at the end of this year, inviting artists to submit their own bottle designs for a chance at inclusion in the next series.

The Obama family is definitely leaning modern, with Rothko, Degas and Diebenkorn among the artists represented. They've also included a word painting by Ed Ruscha. Not wanting to deprive the public of the opportunity to view works on display, the Obamas limited their choices to artwork in museum storage.

There's now a lot of money hanging from those White House walls. "Red Band" by Rothko, "Berkeley No. 52" by Diebenkorn and "White Line" by Sam Francis together are estimated to be worth between $20 million and $30 million. Throw a piece by Jasper Johns into the mix – specifically "Numerals, 0 through 9" – and you get a sense of the collection the Obamas have assembled.

Even with access to a collection of that caliber, though, I'd still never take Obama's job. And, there aren't enough Rothkos out there to change my mind.

The Frieze Art Fair previews in less than a week, and London's art market players are looking to make a splash. While it's unlikely that the prestigious and well-attended event will single-handedly undo 12 months of carnage, hopes are high that it will be a turning point. Frieze is the largest art fair in Europe that's dedicated to the contemporary space.

The preview will be held on October 14, 2009, and 165 galleries will be courting the wealthy collectors expected to be in attendance – up from 151 galleries in 2008. Twenty-eight art galleries left from last year, so Frieze had to find a considerable number of new participants to make up the difference and then come out ahead.

The fair is coming on the heels of a year in which auction sales are down 70 percent to 80 percent and prices for works by many major artists are down by half.

In one of the grandest gestures the market has seen since the slump began, Gerard Faggionato, a dealer from London, will be putting Francis Bacon's "Study from the Human Body after Muybridge" up for sale at a price of $9 million. This isn't exactly what Bacon's work used to fetch, but it's still a steep price in a depressed market. Faggionato represents Bacon's estate, which is the seller.

The painting shown at right, Bacon's ' Study for the Portrait of Michel Leiris ' is being shown as part of the exhibition 'Caravaggio and Bacon' at the Borghese museum in Rome.

The news out of Hong Kong has been solid so far, even if it continues the trend of meeting or beating lowered expectations. After a year of abuse, I think art collectors, gallerists and the artists themselves are eager for any good news they can claim. September was rough, according to ArtPrice, "with no room for over-bidding or risk-taking." There was only one contemporary artist, Andy Warhol, who has met expectations, so far.

But, there's room for hope: Jitish Kallah.

Kallah's only 35 years old. Born in Bombay, his work has been described by ArtPrice as "crisis-immune." The market for contemporary Indian art has been in a hard way, with the Christie's South Asian Modern & Contemporary auction last month bringing in only $5.1 million in sales – where the presale estimate was $5.6 million. Yet, Kallah's work set a new record, with "Dawn Chorus – 7" going for $320,000 and beating its high-end estimate by a factor of three.

Meanwhile, Warhol continues to deliver. A piece from his "Flower" series in 1964 went for $895,000 at Christie's in late September and a "Cambell's Soup Can (Tomato Soup)" fetched $310,000 a day later at Sotheby's.

So, we have fear and hope in October. This week, both Sotheby's and Christie's will hold auctions in the photography segment, with Phillips de Pury following next week. And, there are London sales coinciding with the Frieze Art Fair.

Let's see if art collectors are ready to dress their walls again.

I've been dying to write about the sexy, gorgeous Polaroid photography by artist Matt Schwartz of She Hit Pause Studios for ages, and now, thanks to Henri Bendel, I have the perfect excuse to do so.

Monday night marked the launch of a permanent She Hit Pause exhibition at Alison Nelson's Chocolate Bar at Henri Bendel. The party featured free chocolates, free drinks, and several raffles including surfing and photography lessons.

Why surfing? Because surfing is one of Schwartz's favorite photographic subjects (click here for examples). Really, you have to see these photos -- they invoke memories and inspire fantasies with a haunting and gritty glamour.

Schwartz was there at the party, smiling as he looked around. "This party is like my dream," he said. "All these people looking at my work." His humility speaks well of him -- but it won't be long before he's no longer surprised by all the appreciation. This kid is really, really good.

Check out the gallery for photos of the fete which showcased some brand new, not-available-yet photos from a recent trip to Ecuador. And if you're interested? She Hit Pause prints are available on the website for highly affordable prices -- don't be shocked if that price goes up soon -- or you can visit the luscious photography and grab something sweet at the Chocolate Bar at Henri Bendel.

Art auction houses are looking to protect themselves. Lacking a local "enforcer" to find once eager collectors and shake them down for every last dollar, the likes of Sotheby's and Christie's will spend the coming fortnight managing expectations while trying to eke out a living. Atop the agenda this season is the notion of protecting price levels for Impressionist, modern and contemporary pieces.

Reality has struck.

Sotheby's has revealed a sales target of $179 million to $256 million for the spring. Last fall, the auction house hit $411 million – which is paltry compared to the $742 million take at this time last year. The showpiece now is "Baroque Egg with Bow," a sculpture by Jeff Koons, which carries a Sotheby's estimate of $6 million. While this sounds rich for today's market, the house almost quadrupled that amount with a sculpture from the same artist in 2007.

For those who haven't been keeping score, 2007 for the art world was like 1999 for technology people.

By reinforcing concern through modest estimates and carefully selected lots, the major (and smaller auction houses) are subtly positioning themselves for any unexpected support. A strong spring auction – as measured by current economic conditions – could cause global art market confidence to rebound. A turn for the worse, however, would be exacerbated by already depressed hopes.

Sometimes, the hardest part of choosing a vacation spot is balancing between your wants and the kids' needs. Sprawling out on the beach or sipping a cocktail by the pool works for you, but children need distraction ... constant distraction.

In perhaps the most creative travel offer I've seen this year, Eden Rock – St. Barths is offering an easel, a paint brush and a palate of watercolors. Rather than splatter aimlessly, each kid will receive a one-time lesson with the Eden Rock Artist in Residence (the next is still to be announced).

Even for the caliber of guest that you find at Eden Rock, this can only be described as a once-in-a-lifetime opportunity.

During the lesson, kids will also be exposed to the gallery's exhibitions in progress. In the recent past, this gallery has been home to the likes of Richard Prince and Will Cotton. The natural St. Barths aesthetic plus that created by the artists invited to show their work in the gallery yields a unique combination that is sure to inspire any budding artist.

The lessons are only available when the artist in residence is, in fact, in residence, so check with the Eden Rock Hotel when making reservations. The program runs through August 2009.

Any successful entrepreneur can tell you that tough markets are fertile ground for future success. If you can carve your piece of the world out now, an upturn later will reward you handsomely.

This sentiment must be on the mind of young British artists – such as Merlin Carpenter. London's contemporary art galleries are starting to show affordable works by newer artists. Far from investing in the future or giving the hopeful a fighting chance, this tactic is seen as a way to develop a near-term revenue stream that will help galleries survive the current financial crisis. Retrospectively, this stopgap measure could be seen as pure genius for the art galleries that discover the next Richard Prince or (blech) Damien Hirst.

Claims of forward thinking, however, will have to remain in the future. For now, dealers and galleries in London are struggling. Allsopp Contemporary shut down an exhibition space, and Yvon Lambert pulled out of London.

The market is searching to find – and exploit – some young blood, and buyers are pressing for discounts. The winners may just be the artists. Those discovered through desperation will define the market in the future.

Posh Paws is an idea put into motion by Cantoni furniture store and inspired by a small polyethylene dog originally created by designer Eero Aarnio as part of his children's collection. The Posh Paws version takes the original dog, adds in a few local and national celebrity designers, and comes up with an entire line of adorable and unique puppy toys (toys that are puppies, not toys for puppies) that are up for sale to benefit various charities in the name of animal rescue and helping stray pets find permanent homes. My favorite is this one by Zsofia Mezey Koppani.

Claudia Zeber-Martell and Michael Martell are an Ohio-based pair who work together to create fabulously zany works in clay. Their works range from lamps and glass-topped tables and vases to serving trays and mugs. The pair travel around to art fairs and are shown in galleries around the world. The teapot shown here is one of their signature collectible pieces and sells for $800.

This striking painting is instantly recognizable as a Frida Kahlo. Roots, a self-portrait done in 1943 will be sold at Sotheby's New York on May 24 as part of their sale of Latin American art. It is oil on metal and has never before appeared on the public market. The painting was done after Kahlo remarried her Diego Rivera and is one of her few full-length self-portraits. The painting is expected to sell for $5 to $7 million.  The painting will most likely set a record for Kahlo's work and could set a record for work by a female artist.  I wonder if Madonna, a noted Kahlo collector, will be bidding on this one.

The loss of an Italian church may be your gain if you have a few million dollars. The Independent reports that the parishioners of San Giovanni Battista Church in Padua sold a terracotta relief of the Madonna and Child in 1902 in order to pay for a new organ. The piece is now going up for auction at Sotheby's in New York on January 26 and is expected to sell for up to $6 million. The piece was so covered in stucco and paint that the last time it came up for auction in 1990 it didn't sell. A recent cleaning and new research however assured the fact that it is definitely a Donatello, making it extremely valuable since there is only one Donatello in a public collection in the U.S.