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Hi Guys & Dolls, I'm the new guest blogger on I AM FASHION. I'm extra excited to be given the opportunity to post on such a lovely blog, because I have been following it forever! Much love to BG & HG, you two are wonderful. My blog is over here, and I hope you enjoy my posts xoxox, E.
I used to not care about my underwear. No one saw it, so what's the big deal? I just didn't get it.
I get it now. All thanks to a trip to Italy, where women take looking good seriously, no matter what clothing article you're talking about. During my time there, I found myself getting hustled into Intimissimi by my mum. It was like Italy's version of Victoria's Secret, except it was beautiful, relaxed, and not eye blindingly pink. It was there where I found myself surrounded by dainty things of lace, satin, and ribbon.
I am now totally obsessed with lingerie in general. Slips, camisoles, etc, you name it, I wish I had it all. And while my wallet doesn't stretch to the lengths of La Perla, no one ever said I couldn't look.
And who cares if no one sees it, it makes me feel glamorous. And to have a drawer filled with pretty little things to pick from each day? I don't have a problem with that.
Image Source: Intimissimi, La Perla
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've decided to do my write up early this week- just in case something else happens right after I hit "publish."
After European banks started falling last weekend, everything else started falling apart when everyone realized that this credit crisis was not limited to the US. On Monday, Wachovia made a deal with Citigroup with the help of the FDIC to buy their bank deposit arm for $2.16 billion.
On Tuesday, Bailout plan #1 was rejected by Congress, and the Dow Jones fell over 700 points, hitting a record low since the October Market Crash in 1987. It was actually quite exciting- it is definitely not everyday that we see history in the making! This also served as a good shocker for congress members who voted against the plan. Many of them were worried about the "unpopularity" of Bailout plan #1 with their voters, since many people viewed this plan as a bailout plan for Wall Street (many nay-saying congress members are facing re-election this November). What did they think was going to happen if the bailout plan doesn't go through?
With this record crash in the market, people finally realized that this was a bailout plan for the people. This is not a time to place blame and punish those who did wrong (I mean, if we're really going to place blame, I think the people who borrowed the loans knowing they cannot repay them is equally to blame as the banks who made the loans to begin with). This is a time to take action before the effects of the credit crunch affects the rest of the economy. It would be irresponsible for the government to do nothing. Call me selfish, but right now, as a worker and member of the society, I'm more worried about the adverse effects this will have on my job (the just reported the biggest job lose in 5.5 years!), my 401K, my ability to get a loan (not that I'm planning to buy a car/house any time soon, but IF), and just my way of life in general. Even if you don't invest, have a 401K or have/need a loan right now, businesses you're linked to may close down because they are unable to get a short term loan to fund their business operations or their prices would go up because it will be more expensive for these businesses to get a loan and operate.
Good thing voters and congress members finally realized this on Friday, and voted 263 vs 171 for Bailout plan #2, which was created in record time. It is basically the same as Bailout plan #1, except with an extra $150 billion put aside for random tax packages (way to take the "load" off our future generations). They ramped up the FDIC insurance limit to $250,000, put more oversight on the execution of the $700 billion, gave the SEC authority to suspend the "mark to market" accounting standard (so firms don't have to mark down their assets just because the market is crazy these days) and a gazillion little tax breaks benefiting the environmental friendly, middle class, natural disaster hit states, homeowners,educators and businesses. Basically something for everyone- even people with mental health needs and the makers of "certain wooden arrows designed for use by children" (I don't even know what that is). It sounds like basically the same plan to me, except policy makers decided to take this opportunity for "quick action" to randomly put in policies they've been meaning and wanting to pass, to make it sound like a better plan. Oh well, I guess it works out for everyone in the end.
Unfortunately, now even the bailout plan isn't good enough to restore confidence and the market continued to fall after Bailout plan #2 passed on Friday. It's going to take a while for the bailout to take effect. At least there's hope. I'm thinking it is not a good time for Mr. Schwarzenegger to be asking for a $7 billion short term loan to weather CA out until tax comes in, in spring.
On the other hand, while the current economical situation is being compared to scary sounding things like the economic Pearl Harbor, the Great Depression and at the edge of the abyss, Mr. Buffet went on a shopping spree. After buying some of Constellation Energy for $4.75 billion and Goldman Sachs for $5 billion in September, this week, he also bought 10% in Chinese battery and automotive maker, BYD, for $230 million and more of GE for $3 billion. Even though this may sound shocking in this market, Buffet is actually a very sensible shopper. While fashion trends go in and out, the classics will never go out of style. Goldman Sachs and GE definitely qualify as classics, one being THE top bank on the street and the other being literally the backbone of the American economy, dabbling in a bit of everything. One is Hermes and the other is Bergdorfs. And the best part is that he's buying all these quality investments at a BARGAIN price. Another good shopping philosophy is to invest in emerging talents before they're famous and mainstream. BYD with its rechargeable green batteries and electric cars is definitely part of an emerging market. I'm not sure in which category Constellation Energy fits in, perhaps a bit of both? Either way, Buffet is a very sensible fellow shopper. As he said, "I like spending...The cheaper things get, the better I like it. This is a good period for us..go ahead." I can definitely relate to that. If only I knew the market classics as well as I know the fashion classics and had the capital to act on it. Another Buffet philosophy that I agree with, "there's no way a smart person can go broke except through borrowed money. All borrowed money does is help you get it a little faster, but (it also will) help you get poorer a whole lot faster." Credit card debts are definitely not pretty.
Buffet also made a deal with Wachovia this week, through Wells Fargo (which he owns a lot of). Yes, the same Wachovia that I said earlier in this post, that had just made a deal with Citi on Monday. Wells Fargo upended Citi's offer and offered to buy (the whole of) Wachovia for $15.1 billion without government help. Previous agreements and honor of word aside, this is definitely a better deal for Wachovia and the government since they don't need to help anymore. Wells Fargo is actually one of the few banks that is weathering this market out quite well, having had less exposure to bad debt (they have a much stricter credit requirement- as they should!). Citi, of course, is miffed that their government sponsored bargain deal has been thwarted and are thinking of suing them. Do I see a banking bitch fight coming? Probably not, the government would probably do something. This market doesn't need anymore drama... but it would've been fun to watch :P. It's no wonder that CNBC reputedly has had the best ratings these last two weeks since earlier this decade!
Every year when fall comes around, I am shocked by how cold it is. Summer and time does a good job of fading away memories of the bitter cold and biting wind. Walking around, people are pulling out their trench coats against the cold. But is that enough to keep us warm? It IS only made out of a layer of cloth (or two, counting layers) after all. I own one and I don't find it very warm at all. Maybe I'm just more easily chilled than others, but I'm thinking that something a bit more substantial is called for. Luckily for me, Burberry knew just what I was thinking.
 I am loving Burberry's latest puffer trench coat. Lined lightly with down, it is most definitely warm enough for fall. Unlike other puff jackets however, it still has SHAPE. A very slimming and flattering trench coat shape at that. What more can you want? It will totally last you all the way through fall (plus or minus some layers) and maybe even winter (probably not for snow though, for snow you need the heavy duty stuff)! Image Source: Burberry
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