The art market slump pretty much took root after the May 2008 auctions, in which a triptych by Francis Bacon went to Russian billionaire Roman Abramovich for close to $90 million. An already difficult art market plummeted with the collapse of Lehman Brothers in September 2008, and for more than a year, it's lingered near the floor. Many major auctions have turned in sales of approximately 70% below the previous year's levels. Lehman's art holdings were liquidated Sunday for $1.35 million.

The third quarter could have been much worse. Sotheby's and the other art auction houses took steps to protect themselves following the dismal fourth quarter of 2008, including killing the practice of offering price guarantees to collectors. Sotheby's was saddled with Roy Lichtenstein's "Half Face with Collar" last December, when it guaranteed a minimum sale of $15 million to Italian art dealer and collector Gian Enzo Sperone. Since then, the piece found its way to famous art dealer Larry Gagosian, who was found trying to peddle it at the recent FIAC art show in Paris.

It's a shame that Sotheby's third-quarter results came out this week, given its strong showing in New York. Its impressionist and modern art auction brought in revenue of $181.8 million, which beat its May equivalent auction by a factor of three. Collectors were certainly ready to spend -- more so than they have been all year -- though the quality of the lots contributed to the result. Five pieces sold for more than $10 million, including a piece from the collection of S.I. Newhouse Jr., the man behind Conde Nast.

According to William F. Ruprecht, CEO of Sotheby's, "The art market is clearly in a better place than it was last autumn and the early spring of this year." But, it's clear that there's still plenty of recovery left to attain. The art market's been thrashed, and that is a necessary precursor to the return of BID.