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I guess one of the silver linings to this credit crunch is that sales and special/private sales are creeping in on us way earlier this year. One of the best bargains in my opinion? The BCBG 30% off select outerwear sales. Quite a bargain at this time of the season, when it's barely cold yet. If you buy it now, you'll still have plenty of time to get your mileage out of them in the next few months!
I personally have my eye on this fabulous white coat. I've been wanting one since Devil's Wear Prada came out, but haven't bought one for fear that it will turn beige/grey all too soon. Made of wool, rayon and cashmere, it will at least be warm enough until Christmas. The double breasted design with the tie on the waist, makes it an instant classic. And isn't the trench coat like design at the back just beautiful?
Alas, even at 30% off, I still find it a bit pricey for my budget. But if you aren't as limited, I think this is quite a bargain (along with a few other of their collection). So don't miss it, because this offer only lasts til October 13th (tomorrow!).
Image Source: BCBG
Wow, so much has been going on, I don't even know where to start! I guess to begin with, I'd like to thank everyone for sharing your thoughts. It has been truly fascinating to read about your opinions on this issue. It is always good to be able to hear about the other side of the coin, as my posts will reflect my own bias and I obviously do not know everything, I'm just interested.
I'm happy to announce that nothing too dramatic happened last weekend and no banks collapsed this week- at least not any American banks- yet. On the other hand, we experienced a 8 day consecutive drop in the stock market (globally), like the market has never seen since 1933. The US stock market dropped nearly 18% this week, with the DOW breaking the 9000 mark (and very nearly the 8000 on too today). Asian and European benchmarks posted their worst week as well, while some countries, like Russia, Indonesia and Ukraine were hit so bad that they suspended trading. Basically the stock market dropped and financial journalists are starting to run out of words to describe "down." So how did this happen when the US congress just approved the bailout plan last Friday?
I've pinpointed it down to fear. Fear that this bailout plan will not work or came too late. Fear that the economy is heading for loooong recession (if we're not in one already). Fear that more companies will declare bankruptcy and they will loose all their wealth. And fear is nothing if not a self fulfilling prophecy. As a result, people have been selling off their assets or redeeming their investments in funds, forcing funds to sell off their assets to meet these redemption demands, further driving the market down. Everyone wants to get their hands on solid cash right now- just in case. Emotion is a powerful force. Logically, having just read "The Warren Buffet Way," I believe that as long as you've done your research and you believe that the firm is solid, then the market price of the firm will eventually match with the firm's true value, despite market volatility. In which case, it sounds like there should be a lot of bargains out there right now- not that I'm giving out investment advice. Just musing. Various experts in the field have been debating whether we've hit rock bottom or not and there has not been a general consensus.
So does this mean the bailout plan failed to do its job of stabilizing the economy, since the market actually got worse after it passed? It's far too early to tell (since it has not even been executed yet), but it's comforting to know that something is being done to address the heart of the problem. If you caught a cold and it keeps getting worse, wouldn't you go see a doctor and take some medicine, even though theoretically the body's immune system will naturally fight off the infection, just in case it's something worse than a cold that the body can't fight off by itself?
Though of course, we must bare in mind that the bailout plan is not a cure all (or as Buffet puts it, a "panacea"). To that end, the government has come up with many other 'cures' for the economy:
- On Tuesday, the government announced that it will lend directly to non-financial companies through the commercial paper markets- which are short term, unsecured loans, firms use to borrow money for operational needs i.e. stocking up inventories. This will help companies finance their operational costs easier, since credit is so hard to get these days
- The Fed will start paying interest on commercial banks' reserves, which will expand the central bank's resources and more leverage to battle the this credit market
- On Wednesday, central banks around the world, including US, Britain and China cut their interest rates, which, made together, is supposedly a more powerful move. This is aimed to lower the cost of borrowing and put more liquidity back into the market (and of course there are a host of other effects, but this is the gist). This is one of the most powerful weapon in the US government's arsenal, but at 1.5% (after a 0.5% cut), they don't have much further to go. Any further, and they'll end up like Japan with no more room to adjust their interest rates and a decade long recession. You know the song that goes, "catch a falling star and save it for a rainy day"? I hope there aren't too many even more rainier days ahead, because it looks like we're running out of stars
- Paulson and Bernanke met up with representatives from the rest of the G7 on Friday, to discuss the global economy and came out with a list of broad common goals. I thought those goals were a given, but I guess not.
- They also announced on Friday that the US government will be injecting money into financial firms in exchange for equity stakes, in an attempt to recapitalize firms. At least we're getting something back. Maybe this will help Morgan Stanley, which has been under pressure this week with rumors that MUFG might be pulling out/demaind their stakes and what not.
Speaking of banks, Wells Fargo got the clear from the Fed to go ahead with its deal to buy Wachovia after Citi dropped out from the talks on Thursday to split up the deal. As one would expect, the bidder with the biggest wallet won. Still miffed at being upended out of a bargain, Citi will be seeking damage retributions from WF and Wachovia. Good luck with that.
Over at the other side of the world on a small island of 300,000 people called Iceland, the government nationalized (or rescued) their three biggest banks and closed the stock market, while their currency plummeted (the last I checked it was by a 1/3). Having out grown its Iceland's economy, the banks were struggling to stay afloat in this market with their heavy debts. Some citizens have even lost their life savings becase of this. The government is now currently waiting on a $5.4 billion loan from Russia, the only country who responded to their pleas, having been reluctant to accept anything from the IMF. Not that Russia is doing too well themselves...... I wonder if it's possible for a country to go bankrupt. What happens then? On the otherhand, if anyone is interested in visiting Iceland any time soon (I heard the nature stuff is very pretty over there), Icelandair is offering a "Winter Madness" package for 3 nights staying at the Hilton, for only $549!
I am loving the SS09 Chanel collection. There is something quirky, modern and refreshing about it, that is still very Chanel (of course!).
The reinterpreted plaid pattern is a refreshing twist on the classic Chanel prints. The technique involved in creating some of the structures (i.e. above right), is also modern and chic.
The evening wear were divine. I love the more relaxed silhouette throughout the collection- much more forgiving for all body types. The black dress here (left) is actually one of my favourites. The upper part, with the sheer fabric makes it modest yet subtly provocative at the same time- very classy and elegant. The white dress (right) is admittdely not the most flattering shape on the runway, but there is just something very intriguing about the play on volume and the delicate floral details here.
Then there were beautiful tiered tulle dresses fit for a fairy princess. Ok, the cape (left) is a bit too much with that dress, but the bolero (also a hot item on this runway) is the perfect compliment to the heavily tiered dress on the right.
Onto accessories- see what I mean by quirky, with this vertical classic flap bag (left)? The leather shopping bag (right), is perfect and very clever for the whole "street" theme of the show, but I hope they're not planning to sell it in stores. Otherwise some misguided soul might just buy it and become a walking advertisement- and not even the good kind!
It appears that the peep toe bootie (left) is definitely here to stay for another season or two.... I guess I better get used to it. It doesn't look too weird here. And the feathers here (right) creates just the perfect dramatic effect for the runway, but they're definitely not suitable for rainy/muddy/humid weather. Luckily, the shoes look gorgeous without the feathers as well, and I'm sure Karl will be commercial minded enough to produce them without the feathers for the stores (or maybe they will be attachable!).
One thing I'm unsure about though are the two tone stockings featured throughout the show. It looks a bit like Karl is trying to put a new spin on the much over done legging trend, but I don't know, the spin is not that new and it cuts the model's legs off in an unflattering way, making them look short. The stockings on his F/W 08 runway is way better.
Image Source: Style.com
Back on the Paris runway, we have the YSL show. I must admit, when the rest of the fashion world applauded Pilati for his first collections, I was still a bit hesitant about them. It just wasn't quite the Tom Ford era YSL style, I associated YSL with (that was the era that motivated me to become a hardcore business woman just so I can wear them!). It's taken a while, but I think I'm finally warming up to Pilati! I am loving his minimalistic, oriental inspired collection. It is simple, wearable but still feminine and elegant.
I am loving the subtle black prints and the more relaxed but still structured silhouette of the collection, which is still very flattering. The whole super cinched, fitted and tailored thing is getting old. This is modern and refreshing.
One of the biggest thing on this runway are these lattice mesh shoes. The fashion world is loving this child of gladiators sandals and boots. Personally, I am not so sure. I didn't like the whole gladiator thing to begin with. And if I think that boots with peep toes are unnatural, these are definitely out of my comfort zome. It kind of reminds me of those jello mesh flats that were popular a while back. I do like the metal lattice heels though. That is really modern and cool looking, just not the rest. Maybe it takes getting used to?
Image Source: Style.com
I personally have my eye on this fabulous white coat. I've been wanting one since Devil's Wear Prada came out, but haven't bought one for fear that it will turn beige/grey all too soon. Made of wool, rayon and cashmere, it will at least be warm enough until Christmas. The double breasted design with the tie on the waist, makes it an instant classic. And isn't the trench coat like design at the back just beautiful?
