Last week, I was reading some financial news and came across an article for Tiffany's quarterly earnings report. It was up 25%+ every quarter the last 3 quarters, domestically and worldwide. With the domestic and world economies in near crisis every other week, how is that possible?
There are only a couple of possible explanations
1) the truly rich people are unaffected by these economic problems, and are spending as they like
2) the not so rich are aspiring to live like the rich, in which case is just sad that they think this is truly how the rich lives.
Seriously, one would think that luxury brands like Coach or Movado will not be raking it in because of the poor economic growth, but they are. J$'s guest's post points out that aspirational spending, and I agree that the practice is just asinine. Are people still chasing that luxury life style that brought the housing market and large financial institutions to their knees? Did they not learn? Apparently not as much I think they would.
Saw a reference to your blog on J. Money's blog and came over to check it out. I like your thoughts overall and find it a shame you don't have any comments. In regards to this post concerning people's spending despite economic downturns it is actually a fact that one of the safest investments can be cosmetics and other "feel good" products...which could include luxury/designer items like clothing/accessories. Supposedly, even when people are down and out, they still want to feel pretty so the cosmetic industry stays relatively strong despite turmoil on Wall Street.
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