Downturn Designers

This economic rough patch has not been kind to clothing. It’s become the norm for retailers to offer 70 percent off. Fashion brands from Christian Lacroix to Hartmarx to Kira Plastinina have filed for bankruptcy. (Though it shouldn’t be much of a surprise that a line by a 16-year-old Russian heiress would last less than a year.) Haute couture houses are struggling to survive.

Yet in last week’s New York Times, designer Diane von Furstenberg, who also heads the Council of Fashion Designers of America, advised “confidence.”

“Everyone else is insecure,” she said. “If you start to take a little bit of everyone else’s insecurity—forget it.” (And btw, you were all spending too much during the boom.)

Sure, DVF has an uber-successful fashion company and a billionaire husband. But does she also have a point? Von Furstenberg debuted her namesake brand in 1973, smack in the middle of a major recession. In fact, some of the most popular and respected designers and innovative materials have emerged in downturns—just further evidence that creativity can flourish in recession, and success can take root in hard times…

Screwed: 600 at the Virginia Department of Transportation

A daily review of the employment fallout around the country and the world.

Today’s total: 2,350

The good news: JPMorgan Chase is hiring 250 people in Louisiana.

The bad news: 600 full-time Virginia Department of Transportation employees are losing their jobs….550 United Airlines flight attendants accepted severance packages…ATK Space Systems, in Ogden, Utah, is letting go up to 450 engineers and factory workers…Element Six, formerly De Beers, has laid off 370 of its employees in Ireland…United Launch Alliance is about to cut 224 jobs across the country…

Recession Briefing 7.27

What you need to know today to survive and thrive in the recession.

The economic downturn is taking a central role in the local debate in Chicago over the city’s bid for the 2016 Olympic Games. (New York Times)

A group of eminent British economists has written to the Queen of England explaining why no one foresaw the timing, extent and severity of the recession, and apologizing for their “failure of collective imagination.” (Guardian)

Federal Reserve Chairman Ben Bernanke on Sunday said he engineered the central bank’s controversial actions over the past year because “I was not going to be the Federal Reserve chairman who presided over the second Great Depression.” (Wall Street Journal)

More than 18.7 million homes stood empty in the U.S. during the second quarter as the steepest recession in 50 years sapped demand for real estate and banks seized properties from delinquent borrowers. (Bloomberg)…

Comparing Sharing: Should You Rent Handbags, Movies and Pets?

Mom always told you to share. But it turns out her advice might not always be best—at least, not when it comes to saving money during a recession.

According to the Washington Post, companies with a business model based around the concept of sharing are faring well lately, with car services like ZipCar seeing a 70 percent bump in membership since last year and the book-swapping website BookMooch increasing its membership roster by 30 percent.

While sharing sure sounds recession-friendly, we couldn’t help but wonder if it works out as well for the people doing the sharing as it does for the companies themselves. To find out, we’ve did the math on some of the most popular sharing-based businesses.

HANDBAGS
For a monthly membership fee of $5 to $15, sites like Bag Borrow or Steal and From Bags to Riches let users rent handbags for months at a time. But membership fees aren’t all users have to pay, since actually renting the designer purse can cost an additional $20 to $200 (or more!) per month…

Recession Lexicon: Silver Crime

/n. Aggressive and potentially criminal backlash from the over-65 crowd angry about getting screwed by the economy. First used by a British newspaper to describe a group of German pensioners who ganged up on their financial adviser and picked up by the New York Times‘ Ben Schott. Of course, the seniors in question here lost some $3 million. State-side, there are conflicting reports on whether seniors are more vulnerable to layoffs or in fact less, since they are experienced, reliable workers.

Ex. No, Grandpa isn’t coming to Christmas this year—he was arrested for a silver crime, shaking down his broker…

For a Cheap Date, Get Creative

Periodically, things go really well. Property values grow at unprecedented rates. The S & P 500 grows 13% year over year. And, once in a blue moon, a single pretty good (but not great) idea will catch the right executive’s eye and move someone from the creative class into the realm of the nouveau riche (and they will buy Jet Skis for all of their friends). Then other times, the unemployment rate more than doubles inflation and the best solution anyone can think of is to tax high-earners in excess of 50% of their income. In the latter scenario, romance, entertainment and romantic entertainment* become a bit superfluous when budget time comes around. That’s when the tough get creative.

Screwed: 675 at Yahoo

A daily review of the employment fallout around the country and the world.

Today’s partial total: 1,132

Yahoo plans to layoff 675 employees, which is 5% of its total staff…Intel is set to cut 294 jobs in Ireland, 6% of its Irish workforce, and is moving its main production line to Poland…Assurant Employee Benefits is laying off 91 workers…Alliance Resource Partners plan to layoff 72 employees…

Recession Briefing 7.24

What you need to know today to survive and thrive in the recession.

Sure, Christmas is still five months away, but some stores apparently believe it’s not too soon to prepare for what’s likely to be another difficult holiday-sales season. (Seattle Times)

Jobless checks for millions of people have been delayed as states struggle with exhausted benefits funds. (New York Times)

Hope is building for the economy as positive reports continue to pile up. (Washington Post)…

Downturn Deals: Half-Price Food

Most of the time, I believe that fresh food is best—like just-pulled-off-the-tree or yanked-out-of-the-water fresh. That’s why I like shopping at the farmer’s market. At the same time, for full disclosure: I have been known to test the boundaries of food freshness, more out of sheer laziness than frugality or a sense of adventure.

According to the Egg Safety Center, eggs will keep for five weeks past the expiration date with “minor loss of quality.” But let’s say late one winter night there’s nothing in the fridge but a three-month old carton of eggs. Trust me: Go hungry. DO NOT fry them up and eat them.

That said, somewhere in between just picked and mildly poisonous you can find some amazing food bargains…

How Colleges Can Save You Money

Remember college? The late night study sessions, the lack of responsibility, the keg parties, and—best of all—all the stuff you used to get for free. (Or at least, it seemed free.) Who knew prescription medications and gym memberships would be so expensive in the real world?

You don’t need to re-enroll to take advantage of the many discounts given to college kids. Many universities offer reduced (or free!) services to alumni and non-students, too, assuming you’re willing to work out in a gym surrounded by 20-year-olds. Some of what you can get from campus…