Sunday Hike With Snakes and Shorts

Just another non-eventful Sunday on the hiking trail.

Except for the 3 foot long rattle snake that crossed the trail right in front of me.

Luckily, when I walk alone I tend to keep my head down, concentrating on the trail and whatever I'm listening to on my ipod. If I hadn't been focusing on looking down, I could have easily stepped on the snake.

And speaking of snakes

This is what I was listening to on my ipod.

If you have not read The Big Short you need to do so right away.

No one tells a true financial tale like Michael Lewis.

Retail Therapy

This is for La Belette Rouge...
Maybe it's time to trade in Igor for Kelly

From Reuters

Crisis pushes men to therapy, women to handbags

"Women are also worried about their jobs, but not to the extent that they feel their mere existence is being threatened and so they are in the mood to buy despite the crisis," Jaffe said.
Some men have stopped themselves from splurging on flashy goods that could be deemed as tasteless during times of austerity, while others don't have the capacity to think about spending on luxury items, Jaffe said.
"Many male managers are suffering from a huge loss of status, many feel under an enormous amount of pressure or are suffering from burnout. They just don't have the resources to think about buying luxury goods and prefer to go to a life coach," she said.

LVMH and Hermes defensive stocks....who knew?

Another Reason To Love The Onion

In The Know: Should The Government Stop Dumping Money Into A Giant Hole?

Jewelry Business - The Bankruptcies Begin

A month of mayhem in the jewelry market.
First the bankruptcy of Michael Beaudry
Then two days ago Henry Dunay

From IDEX

Henry Dunay Designs files for Chapter 11
(June 24, '09, 8:31 Courtesy National Jeweler Network)
Henry Dunay Designs Inc. has filed for Chapter 11 bankruptcy protection, the second high-profile jewelry design company to do so in recent weeks.

In a voluntary petition form filed at the U.S. Bankruptcy Court of the Southern District of New York in Manhattan, the corporation estimated that it has between 100 and 199 creditors. Its assets total between $1 million and $10 million, and its liabilities total between $1 million and $10 million.

The paperwork was signed by the company's attorney and by its president, Henry Dunay, on June 18.

According to the company's Web site, Dunay launched his company in 1965 and has won more than 50 awards in his five decades in the jewelry industry. Robb Report magazine named Dunay "World's Best Jewelry Designer" in 2000 and 2001.

In addition to having his designs line the showcases of high-end stores such as Bergdorf Goodman, Dunay's clientele includes Tom Cruise, Oprah Winfrey and Secretary of State Hillary Clinton, among many others.
Earlier this month, Michael Beaudry Inc., based in Los Angeles and also known as a jeweler to the stars, filed for Chapter 11 bankruptcy protection.

Then yesterday David Webb

From Diamond World

David Webb Inc. files for Chapter 11
The company’s gross revenues were less than$5 million
By: Diamond World News Service

David Webb Inc. has filed for Chapter 11 bankruptcy protection at the U.S. Bankruptcy Court for the Southern District of New York in Manhattan. Its lowered sales have not been able to absorb the high operational costs, or pay off its debts and expenses, owing to the market slowdown. In the fiscal year that ended June 30, 2009, gross revenues from sales amounted to less than $5 million, as compared to gross revenues worth $13.25 million in the previous fiscal.

On June 18, a Board decision was taken to file for Chapter 11. The filing notes 50-99 creditors, assets valued between $10 million to $50 million, and liabilities worth $1 million to $10 million. The 61-year-old family-owned retail and manufacturing jewellery company has stores in Manhattan and Beverly Hills, Calif.

Now the question is

who's next

Beauty or Brains or Both

From Newswise (hat tip Deep Glamour)

Brains Or Beauty: New Study Confirms Having Both Leads to Higher Pay

“Little is known about why there are income disparities between the good-looking and the not-so-good-looking,” said the study’s lead author, Timothy Judge, PhD, of the University of Florida. “We’ve found that, even accounting for intelligence, a person’s feeling of self-worth is enhanced by how attractive they are and this, in turn, results in higher pay.”

The researchers found that physical attractiveness had a significant impact on how much people got paid, how educated they were, and how they evaluated themselves. Basically, people who were rated good-looking made more money, were better educated and were more confident. But the effects of a person’s intelligence on income were stronger than those of a person’s attractiveness.

And in this age of recession and layoffs
if you are "funemployed" (hat tip manolo)
this would be a good time to spend your days working out at the gym and sunning by the pool so that you can extra attractive the next time a job interview rolls around.

SNL on the Stress Test

Everytime I try to embed this hysterical SNL video my internet explorer gets cut off. Is there a reason for this?

Those are some of Citi's answers to Part Two of the government's stress test, the written portion, which the Big C apparently thought was "just a big joke." Here are some other questions and answers from the examination administered last Saturday, as obtained by SNL.
* In the event of a nationwide run on the banks, how much in total cash assets does your bank have on hand to pay depositors?
Bank of America wrote: "not enough that's for sure."
Citi wrote: "Geithner sucks."
GMAC wrote: "taxpayer bailout."
* Given their historic under-representation in banking, women should be encouraged to enter the field as long as they are ______. (the correct answer was "as long as they are qualified.")
Morgan Stanley wrote: "as long as they are doable."
Bank of NY Mellon wrote: "immediate family members."
Citi wrote: "Hey Geithner, we've got a job for your mother."

You can get the link from Dealbreaker

Financial Crisis - For Fun and Profit!

Look who's having fun in the worldwide financial crisis!
Yup, you guessed it...George Soros.

From The Mail online
'I'm having a very good crisis,' says Soros as hedge fund managers make billions off recession

A hedge fund manager who predicted the global credit crunch has said the financial crisis has been 'stimulating' and the culmination of his life's work.

I love the way Soros will bring down and entire currency or country...if it means he will profit off of it! God knows after you've earned a few billion, you just can't get enough!

Solve World Hunger. Get Out Of My Closet.

The Obama Deficit

From the Telegraph

Michelle Obama says her husband Barack knows nothing about fashion
President Barack Obama is obsessed with his wife's clothes but knows nothing about fashion, the First Lady, Michelle Obama has revealed.


Obsessed with his wife's clothes...Oh God I hope not.


Mrs Obama, who has swiftly become an American style icon with a Vogue cover to her name, says that she orders the president to stop nosing around her wardrobe, puts up with him mocking her collection of shoes and has to wear one trendy belt when he is not around because he has no sense of style.

Describing a scene which will sound familiar to many less illustrious couples, Mrs Obama said her husband remains bemused by her interest in clothes. "He's always asking: 'Is that new? I haven't seen that before,'" she said, revealing that she replies: "Why don't you mind your own business? Solve world hunger. Get out of my closet."
She went on to mock Mr Obama's tone when dealing with that age old thorny issue: the number of shoes a woman needs. Imitating her husband, Mrs Obama said: "You didn't need any more shoes. The shoes you had on yesterday were fine. Why can't you just wear that for the rest of the presidency?"

Solving world hunger is a lofty goal, at this rate I'd just prefer the President to help stabilize the economy.

The End Of The World - NOT!

Yesterday one of my colleagues stopped by my office and asked if this was the end of the world.
And she was serious.
This was a woman who grew up in a country that was racked by a brutal and bloody civil war. Later in her life she was comfortably settled in a Middle Eastern country that was invaded by a brutal tyrant. She literally had to escape and left her business and friends behind. Fortunately she was able to move to California and start a new life.
Today she has a thriving business with an international clientele of royals whose wealth is diminishing only marginally in the current global slump. Business is brisk.
And she's worried about the end of the world.

Personally, I don't think that it is the end of the world. We live in a consumption crazy country where billions have been spent on gambling, pet perfume, anti depressants, computer gaming, recreational drugs, porn and every tech product imaginable. $200 jeans, $50 mascara, $400 shoes, $2000 handbags, $4 coffees and $15 cocktails....have become the norm in our on demand society and the sense of entitlement is so widespread that we expect everything to be available at all times. This country is so wealthy that even the poor are obese and have plasma TVs with 150 cable channels.
So a correction is in order...and yes this is going to be a big one...and ugly...very ugly.
But the markets will eventually stabilize, housing will become affordable again, gasoline will be reasonable, insane clothing and accessory prices will come down and people will be more thoughtful about their spending. Companies will downsize and then rehire. Innovation in medicine and technology will happen. The earmark addicted - pork spending Senate will be voted out.
It's not the end of the world.

This video of comedian Louis CK on Conan O'Brien's show has been all over the internet. It kinda puts things in perspective. If you haven't seen it take a look.

Everything is Amazing, Nobody is Happy

From today's Drudge Report

Obama Says USA will rebuild and emerge stronger...
Obama vows to increase number of soldiers...
Obama vows to seek cure for cancer 'in our time'...
Obama says bank bailout may cost more than expected...
Obama promises universal EDUCATION THROUGH COLLEGE...
Obama promises universal health care...

Is there anything this President can't do????





Somehow it all reminds me of the lyrics from the famous Burt Bacharach- Dion Warwick song from the Broadway musical Promises Promises
(yes...my mother took me to see the show in New York when I was just a wee little girl)
Promises, promises I'm all through with promises, promises now ...



A very close friend of mine with a high position at a major trust company told me last week about half of her department got laid off. And I'm hearing a lot more stories like this.
Not to mention that my son, young Mr. de Ville was laid off as well.

Look, I love a good college education as much as the next person... I even went to college and to graduate school, but universal education through college wouldn't be anywhere at the top of my list for helping America. How about improving the economy so that jobs can be created...and sustained... for people that can't be outsourced to India and elsewhere.

Just saying...

Countdown To Valentine's Day - For The Boys

Serious times call for serious clothes...so here's my suggestion for a Valentine's Day gift for your guy.

Today's DJIA

Harry Winston Cufflinks $1850 fromk Beladora.com

Ferragamo Dress Shirt From Neiman Marcus $295

Because now is the time to dress like you mean business.

I Just Thought You Should Know

From Bloomberg.com
U.S. Taxpayers Risk $9.7 Trillion on Bailouts as Senate Votes

“We’ve seen money go out the back door of this government unlike any time in the history of our country,” Senator Byron Dorgan, a North Dakota Democrat, said on the Senate floor Feb. 3. “Nobody knows what went out of the Federal Reserve Board, to whom and for what purpose. How much from the FDIC? How much from TARP? When? Why?”

The remaining $8 trillion in commitments are lending programs and guarantees, almost all under the authority of the Fed and the FDIC. The recipients’ names have not been disclosed.

The promises are composed of about $1 trillion in stimulus packages, around $3 trillion in lending and spending and $5.7 trillion in agreements to provide aid.

So how much money is this really?

The $9.7 trillion in pledges would be enough to send a $1,430 check to every man, woman and child alive in the world. It’s 13 times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office data, and is almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve.

The chart that I posted above isn't really clear, so I'll just give you the gist.

The amount of the bailout is more than the sum of

The Louisiana Purchase

The New Deal

The Marshal Plan

The Korean War

The Vietnam War

The Moonshot

The Iraq War

The S&L Crisis

The NASA Space Program

In other words, it's a lot of f*#king money

Shouldn't we know where it is going?

The Federal Reserve so far is refusing to disclose loan recipients or reveal the collateral they are taking in return. Collateral is an asset pledged by a borrower in the event a loan payment isn’t made.

So much for transparency

Bailout Boondoggles

Every year at tax season I get to wondering about where it is that all my tax dollars go....

Here are some of the Bailout Boondoggles that you and I have paid for.

1. The Golden Parachute

Peter Kraus joined Merrill Lynch in early September to head up its strategy team. But Bank of America, bolstered by $25 billion in bailout money, won shareholder approval this month to take over Merrill. The deal will trigger a golden-parachute clause in Kraus' contract, allowing him to pocket as much as $25 million for his two months on the job, according to The Wall Street Journal.

2. Executive Retention

Should taxpayers pay to keep executives who steered a company into a ditch? American International Group thinks so. It recently agreed to pay retention bonuses to 130 executives, including $3 million for Jay Wintrob, who heads the division that sells annuities. Last year, he earned $2.5 million in salary, bonus, stock and options. Other AIG execs will get more than $500,000, or about 200% of their salaries, to stay through 2009, according to Bloomberg. The insurer had previously promised to forgo bonus payouts as part of the bailout plan. AIG says retention bonuses are needed to keep execs from leaving while it restructures and that departures could cause the company's reinsurers to cancel contracts.

3. Executive Compensation

As millions of Americans learn what it's like to make ends meet on unemployment insurance, executives at banks getting taxpayer bailouts will continue to live the high life. Capital One Financial CEO Richard Fairbanks got $73.1 million in pay last year, according to The Corporate Library. That's 1,456 times the median household income of $50,233 earned by taxpayers footing the bill for Capital One's $3.55 billion federal bailout. Bank of America chief Kenneth Lewis last year took home $23 million, or 458 times the income earned by taxpayers covering his bank's $25 billion bailout. Both CEOs also make way more than the median of $8.85 million for CEOs at S&P 500 companies. Despite having to lean on taxpayers with modest incomes for help, both CEOs will likely continue to earn stratospheric pay. Neither bank has indicated it plans to cut CEO pay.

4. The Corporate Jet For Personal Use

While hard times are forcing many Americans to stretch another year out of the family jalopy, the CEOs at banks getting bailout money will continue to ride -- and fly -- high. John Mack . who heads Morgan Stanley, which has taken $10 billion in bailout money so far, enjoyed $356,000 worth of personal use of a corporate jet last year. JPMorgan Chase has gotten $25 billion in bailout money. Its chief, James Dimon, took $211 million worth of use of a company jet last year. He used company cars at an estimated cost of $68,000. So far, neither company has indicated it will cut back on CEOs' personal use of corporate jets as part of its acceptance of taxpayer bailout money.

5. Mergers and Acquisitions

Many banks are playing "Let's Make a Deal" and building empires with bailout money, instead of using it to make loans that help the economy. Shortly after PNC Financial Services got a $7.7 billion cash injection, it announced a buyout of National City. BB&T and Zions Bancorporation have said they have the urge to merge -- now that they've collectively pocketed $4.5 billion in bailout funds. Bigger banks mean less competition and higher fees for the taxpayers who helped fund these deals. And the mergers have created more banks that are "too big to fail" -- so when they come back for more money, it'll be even harder to say no. BB&T says it would buy only "problem" banks, in the spirit of the bailout program.

6. And More Golden Parachutes

Cleveland's National City bank was run so badly that it was virtually ruined, mainly by imprudent exposure to subprime mortgages. Management's reward for creating this colossal disaster: $200 million in golden parachutes. And taxpayers will get fleeced a second time. Because of a last-minute change in tax rules, PNC Financial Services, which bought National City, will get about $725 million in income-tax credits. Those credits stem from the $19.9 billion PNC expects to lose on bad loans made by National City.

On the positive side....now I know that there's quite a nice list of potential clients for 2009...John Mack, Jamie Dimon, Richard Fairbanks, Kenneth Lewis, Peter Kraus and their bailout buddies!!!

Bienvenue en France ! La Grève Générale !

Ah Paris
The City of LightThere is always the Paris of our dreams.
Strolling along the Champs-Elysées before stopping at a sidewalk cafe for an apéritif...
Visiting the Musée d'Orsay then perusing the used book vendors along the quai next to the Seine...
Shopping at the boutiques on the Rue Saint-Honoré and the Rue du Bac...
Checking out the antiques at the Marché aux Puces early on a Sunday morning...
Dining late at a neighborhood brasserie in the 16th Arrondissement...

And then there is the Paris of our reality.
La Grève

From AGI News
FRANCE: GENERAL STRIKE, CHAOS IN CENTRE OF PARIS
AGI) - Paris, Jan. 29 - Today's general strike in Paris has turned into chaos and clashes in the French capital. The strike against the economic politics of Nicolas Sarkozy and his management of the financial crisis saw the participation of tens of thousands of people, mostly just parading peacefully. After a few hours however some groups of youngsters became violent. Many of them were wearing ski-masks, they started shouting slogans against Sarkozy asking for his resignation. Then they began throwing stones, they started fires and clashed with the police. The police in turn used truncheon against the rioters but were unable to disperse them according to eye witnesses. The protesters tried to enter Boulevard de Capucines shouting ''We go to the Elysée!". Had they really done so they would have passed the shopping and tourism districts to reach the President's office. The police stopped them however.

From the Wall Street Journal

In France, A Strike Against the Economy

French unions are worried that the faltering economy will lead to massive job cuts. So naturally they organized a general strike yesterday that could cost the economy a few hundred million euros in lost working hours. Nobody has ever accused the union bosses of clear thinking. "Black Thursday" is the first sign of political trouble in a major European economy as a result of the economic crisis. More than one million people protested against President Nicolas Sarkozy's economic management. As always, France's public-sector employees were particularly eager to strike -- 23% of them didn't show up for work.

And from a blog (h/t joe)
Yet again the French are on strike. This time, among the usual collection of everybody striking over their own petty demands that they expect the rest of society to attend to for them, is the over-arching theme of this economy wrecking event – they are striking against the global economy.
The best I can gather from interviewed agonists and such is that in large part people are mad at the French government’s intervention to prop up the banks and major industries, something the blithering idiots are usually all for. Normally, a trend away from socialistic dirigisme would be a good thing for the overall potential of a healthy economy, but these protestors, including the bolshy CGT, Reds, etal., are protesting that the largesse of the state is being directed at the economy at all and not limited to relieving them of the cost of social free-riding.

Even the employees of the Euronext stock exchange are marching. Just what is it that they think the ‘social compact’ is supposed to do for their racket that the rest of the people in their same union won’t protest?

and you wonder

does anyone really want another French Revolution?

well, apparently so...

Never letting a crisis go to waste, the left are ready to exploit your misery for the sake of their power-grab, and opportunity to wreck the economy for good with methods borrowed from the largely agrarian 1930s. As per the Boy wonder Olivier Besancenot:
Olivier Besancenot, the young leader of France’s extreme left is hoping Thursday’s strike will be the first step towards another French revolution as the recession bites and protests multiply across Europe’s second largest economy.“We want the established powers to be blown apart,”

From the International Herald Tribune

Strikes hobble services in France

PARIS January 29, 2009 (IHT) - Hundreds of thousands of workers went on strike Thursday across France, snarling transportation and closing post offices and schools in a sign of discontent with President Nicolas Sarkozy's response to the economic crisis.
... Mass transit in the capital was in chaos, with service on suburban commuter lines reduced or nonexistent, and most subways and buses running well below normal frequencies. The Education Ministry estimated that 37 percent of teachers walked out. In Marseille, the country's second largest city, television showed buses crammed with commuters as subway service was completely interrupted.
Across France, airports were operating at reduced capacity and flights were delayed. The rail line that serves the two Paris airports was completely shut down, stranding arriving travelers in long taxi lines.
As many as 200 demonstrations were planned across the country, including a massive march across Paris in the afternoon.

La Grève...it's a national sport for the French!

That One Special Thing - But Is It Simply Not Suitable?

From today's Wall Street Journal



The $43,000 Recession Suit
Even as overall sales wane, some luxury makers push the price envelope; 'one really special thing'

As the worst financial crisis since the Great Depression swept the globe in October, the high-end Italian clothier Brioni introduced the most expensive line of men's suits in its history. Made to measure from rare fibers such as vicuna, pashmina and Qiviuk, the suits have price tags as high as $43,000.

"The timing was not fortunate for us," says Andrea Perrone, Brioni's co-chief executive.

Well apparently not because

the wealthiest 1% to 2% of consumers world-wide -- are still spending, even if they are buying fewer things. Individuals in this group, whom Mr. Perrone calls the "elite of the elite," have bought 30 of the $43,000 suits.

So the luxe market isn't as dead as we thought

The outlook for high-end labels, it turns out, depends on where in the luxury hierarchy they are located. Retailers took a holiday beating in December, and consulting firm Bain & Co. expects demand for luxury goods this year to fall by 3% to 7% overall. But at the market's upper-most crust -- which Bain defines as 70 brands including Loro Piana and Harry Winston, as well as Hermès, Van Cleef and Brioni -- sales for 2009 are expected to hold steady or grow moderately, following growth in 2008 of 8%, says Bain partner Claudia D'Arpizio. Very wealthy people may not be buying as much as they used to, but they aren't reducing their standard of living, she says.

So it's all about the message

And the message is "If you're going to buy, buy BIG"

While middle-income consumers have cut spending because of their income, "that's not the case with the wealthy," says Carl Steidtmann, chief economist at Deloitte LLP. The wealthy are "constrained by guilt, and that's the hurdle high-end brands have to overcome." The luxury advertising message is more important than ever, he adds.

I understand why a piece of jewelry is priced somewhere north of $40k...there is the actual intrinsic value of the materials, the cost of manufacturing and the design.

But is a bespoke suit ever really worth $43,000?

WTF is the fabric made out of...spun gold?

When The World Is Not Enough - The End of an Era at Citigroup

Well...it finally happened. The Braintrust at Citigroup, the world's biggest financial firm and one stop shopping mall for all of your financial needs from private equity to insurance, has been broken up.
Now with Smith Barney being merged with Morgan Stanley, Jane Wells of CNBC in her article Vote Now To Rename Morgan Stanley Smith Barney has asked what the new name should be.
Here are some suggestions

To my Smith Barney buddies....don't worry, I'm sure that you'll get along fine with your new Morgan Stanley masters....

The Big Spin on the 2009 Spend

Finally...The Death of The Art Project Statement Necklace -

Fashion Not Quality

From Forbes.com
In Depth: How The Luxury Consumer Will Spend In 2009

This is one of a handful of habits luxury buyers are expected to embrace in 2009. Wealthy consumers will spend, but differently than before. Exclusivity will be embraced as will quality and dependability. What's more, luxury brands will begin offering discounts and incentives--something many have never done before.
"The days of shopping 'til you drop are over," says David Lamb, chief strategic officer at diamond giant De Beers, which, with London-based market research firm Ledbury Research, recently examined the changing demands of the high-net-worth customer. "Instead of seeking out novelty, they're exploring authenticity," he says. "In this kind of economic climate, you literally can't afford to make a mistake."

Real Jewelry With Intrinsic Value, Not Fashion Statements, Will Sell

"This income bracket is very aware of the public backlash against them. In many respects, those that have the wealth played a role in the economic turmoil that has erupted," says Brian Sozzi, a retail analyst at Wall Street Strategies, a New York-based independent stock market research company. "So, there is no need to throw it in the face of someone shopping at Wal-Mart by showing off the new Louis Vuitton bag."
Yet Sozzi and others believe that conspicuous consumption will never entirely fade.

Shireen El Khatib, CEO of Al Tayer Insignia, the luxury goods arm of the Al Tayer Group, which inked a deal to bring Bloomingdale's to Dubai in 2010, says that while the number of tourists in her stores--including Yves Saint Laurent and Italian cashmere brand Loro Piana--this November were down, sales among locals were up. (She would not reveal specific numbers, but she did say growth has slowed from double digits in 2007 to single digits in 2008.)

"The consumer is becoming more and more sophisticated and brand savvy--looking for limited editions and other timely items," she says, "but [in the Middle East], they're still shopping."

Or not...

However, Ron Kurtz, founder of Alpharetta, Ga.-based market-research firm the American Affluence Research Center, says this might not be the case for long. As the oil that has made many in the Middle East so wealthy loses its value, those who he calls the "new rich" may begin to cut back, including those in Saudi Arabia, Brazil and China. New initiatives--such as Saks Fifth Avenue's Jan. 12 announcement that it would open a store in Jeddah, Saudi Arabia, its second in the country--might be postponed due to a decline in overall consumer confidence.
"The wealthy citizens of the countries now experiencing recessions and declines in oil and commodity prices will contribute to the decline in sales of 'true luxury' brands," says Kurtz.

My take on all of this is that the affluent will cut back substantially but the ultra affluent will alter their spending habits only slightly....they will still spend, but discreetly.

And finally they won't be dropping $2500-$10,000 on those ridiculous statement necklaces that were all the rage in the 2008 collections....they will go for quality and intrinsic value.

My New Year's Resolution - Raising The Tone

Whenever any year comes to an end I spend a little time pondering the past. And this year was no different. So, as I did with my life in general, I took a close look at this blog.

What I found was a growing meanness of tone as the year progressed which is hardly surprising given the depressing daily news about the domestic economy and the endemic corruption of our government officials and Wall Street scions. Add to this all the bad international news: pirates off the Somali coast, terrorists in Mumbai, slavery in the Sudan, butchery in the Congo, and the usual insanity in Gaza.
Current events were so compelling I found it difficult not to post about them and when I did I couldn't keep the snarkiness under wraps.

But in spite of all that's wrong in the world I realized that things are pretty good chez moi.
Mes enfants, the future quant and the future professor of an esoteric subject, are doing just fine. Everyone in my family is healthy and happy. My friends are all gainfully employed. I have the best job in the world and business is booming.

Basically, it has been a great year.
And the tone of this blog should reflect that.
So I'm making a conscious effort in the upcoming year to stay on topic with fashion both vintage and new, luxury lifestyle and travel, culture and of course the world's best estate jewelry.
(and a little music here and there)

In other words making this blog all unicorns and butterflies and rainbows
and fluffy bunnies.




Full Disclosure: I've been known to break a few, well actually all, of my New Year's resolutions in the past, so we'll see how long this one will last!

Bling Biz - The Year End Report

The industry news from IDEX

Online Shopping

2008 Online Holiday Shopping Sales Decline 3% to $25.5 Billion
(December 31, '08, 5:32 IDEX Online Staff Reporter)
Online retail spending during this year’s holiday season, between November 1st and December 23rd, declined 3 percent to $25.5 billion compared to the same period in 2007, according to comScore tracking analysis.

The company, which measures e-commerce, says this year is the first time since 2001 that there has been negative growth in the holiday season, which is attributable to the combination of having five fewer shopping days between Thanksgiving and Christmas this year and the “severe economic headwinds faced by consumers.”

Similarly, the fourth quarter of 2008 will mark the first full quarter to record negative growth since 2001, with e-commerce spending for the period of October 1 – December 28 down 4 percent to $36.8 billion.

Despite low retail sales, several top retailers registered growth in site traffic during December 1-24, compared to the same holiday period in 2007. Though eBay suffered a 4 percent drop in visitors, it remained the most visited retail site with 85.4 million visitors; Amazon sites had a 7 percent increase in site traffic totaling 76.2 million visitors.

Luxe Business

U.S. Luxury Sales Hard Hit in Holiday Season, MasterCard Finds
(December 28, '08, 9:30 Edahn Golan)
Luxury retail sales in the U.S. dropped 34.5 percent in the holiday season, according to MasterCard's SpendingPulse. This figure includes jewelry sales. Total retail sales, excluding automobiles, fell by 8 percent in December through Christmas Eve, compared to last year.

Excluding gasoline sales, the fall in retail sales was 2.5 percent in November and 4 percent in December.

The National Retail Federation projected holiday sales to rise 2.2 percent this year to $470.4 billion. In November, IDEX Online Research analyst Ken Gassman forecasted annual jewelry sales to be flattish to down about 1 percent. When jewelry price inflation is removed, jewelry sales in terms of units will likely be down about 7-8 percent for the full year, according to Gassman.

Ouch!

The Sell side is certainly screwed...but the Buy side is looking good, especially with diamond prices coming back down to reasonable levels.

Anyone who has held off on making a diamond purchase will benefit in the upcoming year with a larger selection at lower prices.

Times Are Tough In Luxury Land

From the Times Online
Even fashion giants Chanel and LVMH forced to economise

Until recently, France's marques de grand luxe were claiming immunity from the slump. Demand for the high end was holding up, driven by the luxury appetites of the nouveaux riches of Russia, China and other emerging powers, they said.
The denial has faded over the past month as Russians and Asians have been noticeably absent over Christmas from the boutiques in the Paris golden triangle off the Champs Élysées and their equivalents in London and New York. Business in Japan has slumped.
A week ago Chanel, privately owned and secretive about its affairs, called off a glitzy art show as it was about to arrive in London from New York. Over the weekend trade unions reported that the fashion house was to lay off all of its 200 Paris staff who are on fixed-term or temporary contracts.

Chanel Pre-Fall 2009

Chanel Pre-Fall 2009

Somehow I'm not surprised by this. Even the trophy wives of Russian oligarchs and Chinese mega moguls, must have better taste than to buy into these overpriced outfits from Chanel.