It's not an accessory; it's a lifestyle.

Hand-wringing is currently going on at luxury bag manufacturers.

Luxury handbag maker Coach came in with relatively strong numbers for their fiscal fourth quarter but are still feeling gloomy. Although Coach's fourth quarter profit rose 33% the company has predict that the continued consumer cautiousness in the U.S. will reach well into 2009.

Does this type of cautiousness differ in kind or degree when compared to the cautiousness displayed by the American consumer who moves from cheddar cheese to American cheese to nothing?

Coach joins other retailers in predicting reduced spending even among luxury shoppers.

When the superfluous cannot be moved, a principle feature of capitalism is in peril.

Chief Executive Lew Frankfort said in an interview that the company will introduce products with higher material and labor costs at prices lower than they would have charged during more rosy economic times.

Will the laborers who are increasing their workload see any increase in their wages? Or is it piecemeal? Or, more likely, will their increased effort be rewarded with decreasing wages because of the unfortunate "fluctuation" in the market?

From: http://www.luxist.com/2008/07/29/coach-predicts-tough-times-ahead/

I refuse to donate money to the orphans unless I see some goddamn razzle-dazzle

The current economic downturn is making it tough for charity organizations to raise money from the wealthy.

Ms. Murray explained, however, that there is pressure in the philanthropic world, despite the economic downturn, to always outdo past performances.

“There was some talk about getting a normal tent — our budget is about 10 to 15 percent lower than it was a couple of years ago — but we don’t want to give people less,” she said, adding that Mr. Simmons rented a free-span tent two years ago and didn’t want to do without it this year. “What does it say about you if you’re charging less or giving them less? Each year we’re expected to grow this event. People want to see some razzle-dazzle.”

Of course, if you want to maximize profits, you must first minimize labor costs.

Eliza Rand, a spokeswoman for the Children’s Museum, said planners realized a week before the July 12 gala that they would fall short of their $280,000 goal, so “we decided to downscale in order to maximize what we were bringing in.” Out went the cover band, in came the local teenagers and museum instructors, performing free or for $75 stipends.

Things are so bad that even the daily flower arrangements aren't being outsourced.

It might be too early to call this the East End’s summer of austerity, but Jeff Pennington, a high-end florist, said he had noticed that many of his steady private-home accounts had fallen off. “They’re asking for estimates, which they never used to,” he said. “For weekends when they don’t have guests, people are just doing their floral arrangements in-house.”

What I think this shows is charitable giving by the rich is often done in an atmosphere that does not require them to be somber or reflective. Rather, it is a way for them to engage in their already-hedonistic lifestyle with the added exoticism and thrill of it ostensibly being for a humanitarian cause. It is a fetish where excitement is enhanced by the fake selflessness that promotes it.

Via Ohio

From: http://www.nytimes.com/2008/07/19/nyregion/19galas.html?_r=4&partner=rssnyt&emc=rss&oref=slogin&oref=slogin&oref=slogin&oref=slogin