Aren't You Sick of the R Word?

Since this global financial crisis began, my father has been coining a new catch phrase. Any time he thinks it can fit into a conversation, the sentence falls out of his mouth. For example, “Dad, it’s cold in Chicago. Let’s go somewhere for spring break.” He says, “We’re in a recession.” I say, “Dad, I need a new pair of shoes.” He says, “We’re in a recession.” “Dad, I’m really sick of hearing about this recession business.” He says, “Well, we are in a recession Maddie.” I’ve listened to his new catch phrase so many times I can hear it when I close my eyes to go to sleep.

But it is not just my father, it’s everywhere. Newspaper articles, television shows, retail marketing, conversations on the street…it makes me want to scream. I know, it’s a big deal and it’s affecting every single person. It just bums me out thinking about it and constantly hearing the dreaded word recession, and knowing how much it is affecting each individual person.

While browsing looking for something to inspire me so I can write about it, I stumbled across a new video series on the New York Times website. Our blog, Hard Times, has a very similar idea. People’s stories, while sometimes very depressing, help me to learn about what is going on in the world instead of reading about it in a general news article.

The series is called “The New Hard Times,” and will focus on different people’s feelings on the past and uncertain future during this…r word. It’s very well done, and adds a new and interesting element to journalism’s role in covering this crisis. I would recommend checking it out. But even after, try to refrain from using that nasty word when I’m around, so you don’t have to hear my grunts and grumbles on the topic.

A Freak Connection Between the Sunshine and the Economy?

When Chicago made it eerily close to the top of Forbes’ most miserable cities list earlier this year, one of the main reasons happened to be the lousy weather we encounter for what seems like three fourths of the year. When the weather hits even a slight breeze over 50 degrees, I see people busting out their mini skirts and flip flops, only to trade them out for their Uggs and winter coats the next day.

Ok, Forbes, our weather is miserable. We know, we live here. However, a New York Times article recently came out discussing the possible connection between sunshine and a slight improvement in the economy.

This may be a far stretch, and certainly will not have any drastic difference in the situation. However, they point out that when it is nice out, people feel much less gloomy and get out of their apartments/houses to get into the rare sunshine. Therefore, people are not focusing so much on their tight budgets and spend some money for lunch or new attire for the warm weather.

But apparently, this theory stretches beyond just buying a new dress because it’s nice outside. The stock market benefits to the spring and summer seasons as well. Stock prices rise higher then, as opposed to winter when trading decreases. This could be because of the recession this year, but the numbers are consistent.

According to this same article, “David Hirshleifer, a professor at the University at California, Irvine found that strong sunshine at the sites of 26 leading stock exchanges around the world (including the New York Stock Exchange) was linked to higher stock returns. Annual returns for the market were, over the course of the 16-year-period he studied, 25 percent on sunny days, compared with 9 percent on cloudy days.” So if the sun does in fact come out tomorrow, and stays out, the economy could see a slight boost.

Regardless of the economy, I would really love if the sun graced us with it’s presence and the temperatures stayed up for more than just 12 hours at a time. So this miserable city has some hope, and perhaps so does the economy coming into the warm season.

If I Could Be Anyone in the Whole Wide World, It Would Be Her.

buzz has surrounded this episode of CNN's Revealed since I can remember.
i have searched my directv guide at least 15 times, desperately trying to find it.
well, here it is.
someday, i will grow up, be much larger, and hopefully have a mere shrivel of her elegance, grace, and success.
enjoy, my hero.

An 80 Million Dollar Loan. Try Paying That Back.

We’ve all been in American Apparel. Essentially, if you need a basic piece for your wardrobe, you can get it in any color under the sun for way more than you want to pay. But I somehow manage to still spend $26 on colorful leggings and t-shirts for no apparent reason. Even if you aren’t aware of the store, you most likely have an American Apparel item in your closet. Most bands and companies use them to screen print their logos on.

Most people are attracted to the store for it’s simple nature and eclectic vibe. Everytime I’ve been in the store, it’s been packed with people. You’d also think that a place that charges $20 for a v-neck shirt, and it sells, would be doing pretty decent.

Unfortunately, this is yet another case of a store in trouble. On Friday, American Apparel almost filed for Chapter 11 bankruptcy. If they could not come up with $16 million or renegotiate their loan terms, their doors would close. Luckily, CEO/Founder Dov Charney and his team figured it out, and nearly missed their deadline. At midnight, British firm Lion Capital granted them a $80 million loan came their way. Charney used some of his own money to save his beloved company, which already owed $51 million from a previous loan.

After all of this drama passed, their stock raised more than 34%. Perhaps the days of sparkly leggings and oversized, expensive clothes are not over for Charney and American Apparel. Have no fear, the stitch by school downtown is safe. For now. But paying back $81 million dollars? Count me right out.

In with the Lipstick, Out with the Louboutins

Though it may be stating the obvious, in hard times most people cannot afford to purchase superfluous items with a large price tag. Women with a bit of money to spend usually are the ones buying said items, on things like jewelry or a pair of pricey shoes. During this looming economic crisis, the sales at major department stores and boutiques are slipping, causing job cuts and credit problems.

All is not lost, apparently. After being the girl that stands in front of the wardrobers, admiring the dresses and clothes I cannot afford, and walking out with a measly tube of lip gloss, it makes me feel a little better knowing I am not the only one participating in such activities. There is a term, thought up by the Chairman of Estee Lauder, Leonard Lauder that explains this behavior.

The “Lipstick Effect” happens during times of economic recession. It explains that women tend to purchase affordable items, like lipstick or nail polish, rather than the more expensive things in order to boost their spirits a bit.

Historians claim the same thing happened in the 1930s during the Great Depression, where a tube of red lipstick seemed to make the world a brighter place. The term, however, came about shortly after September 11th. According to the Chicago Tribune and ACNielsen data, the sales of color cosmetics–including lipstick and eye shadow–are up 4.4 percent.

Men, who tend not be such fans of cosmetics or lipstick, are using their lipstick budget towards double cheeseburgers and fries. Fast food chains seem to be one of the only businesses in America to see an increase of profit this year.

With the lipstick effect seemingly in full force, at least cosmetics counters can continue their business. That, and the slight pop of color on a woman’s lips might brighten someone’s day amidst that dreaded R word.

The Recession Not Only Hit the Oscars, But Also the Afterparty. Yikes.

I have been pumped about Oscar Sunday ever since I left the theatre in the fall after seeing Angelina Jolie in Changeling. I told my roommate, “well, that was fun. I just saw Angie win an Oscar. Awesome.” Yes, I refer to her as Angie. No, we aren’t friends. Only in my dreams.

Anyway, my mind quickly changed after seeing The Curious Case of Benjamin Button, Slumdog Millionaire, and finally my favorite actress Kate Winslet (and winner of best actress as of an hour ago, gasp) in the Reader.

While sitting on my couch in my sweatpants, I could only imagine the gown I would wear if I was on Brad Pitt’s arm, or what I would say to Ryan Seacrest’s annoying questions. I also floated off into a land where I held an exclusive invite to the Vanity Fair After Party.

Normally, the party is an extravagant, to say the least, gala filled with the recent winners, their dates, and any famous celebrity you would die to lay eyes upon. I’m sure it still will be, minus the normal extravagance. Last year, the writer’s strike forced Vanity Fair to cancel the famous party. So this year, they were ready to show what everyone had missed the year before, and then some.

However, our good friend the recession got in their way. According to an article from the Huffington Post, Graydon Carter, the editor-in-chief, announced that “the party will be a much more intimate affair than in years past; we’re going to scale back the guest list considerably… it will be a cozier, more understated event. And one with familiar décor — given the current economy…”

Not even the year’s most celebrated celebrities will get a larger than life party. Clearly, this recession is affecting all of us.

yes. yes. yes.

kate. you're just great.

at risk of sounding cliché.

i'm obsessed with marc jacobs. i'm obsessed with his collection. i'm obsessed with his face.



also, rodarte as well? who knew.



new york fashion week = life.

Give Saks Some Slack.

Picture a sample sale or trunk show at an upscale department store if you can. It usually entails a room full of women, draped in their fur coats and weekender-esque purses done up and looking their best while perusing amounts the newest releases of their favorite designers. Saks Fifth Avenue, a mecca for fashionistas and the like for hundreds of years, used to be a place buzzing with people looking to spend their hard earned dollars. Now, the aisles are more bare and their prices are slashed, due to their poor performance.

I used go to Saks when I got a bad grade on a test or felt a little edgy, looking for a pick-me-up. I would usually end up walking out with some nail polish or a few samples a salesgirl would give me after taking pity on me and my sad face. But I cannot even bring myself to go in anymore. It hurts my heart to even think about looking, because if rich people with careers cannot afford it, I certainly am no where close.

Department stores, especially Saks, are doing the worst of the whole retail industry during this economic slump. WWD, a leading fashion news publication, reported that department stores cut 8,600 jobs just in the month of January alone. In fact, Saks recently lowed their credit rating from "stable" to "negative," which means their company is not likely to get further investment.

Not only is their backing at risk, but 1,100 of those 8,600 lost jobs came from inside of the once booming department store. They have cut nine percent of their workforce total, according to Reuters, who also reported they will reduce their capital spending by 50 percent this year, to about $60 million, from 2008. In other words, big huge yikes.

Not that $60 million sounds like that small of a budget. I can only imagine what I would do with $60 million. Probably go to Saks...

However, not all is lost. To draw in customers, perhaps like us poor college students, they are drastically slashing their prices and putting everything on sale. During my birthday weekend in early January, their sale racks were a whooping 80% off, which is like the apocalypse in the world of Saks. According to a lengthy article in the Wall Street Journal, their strategy quickly became slash the prices before any other retailer does, to gain whatever business is left out there.

I pray it will work. While I do love actually actually being able to possibly afford something in the store besides a measly item from the cosmetics department, it only means big trouble in the long run.

Photo by: Richard Drew/AP

McDonalds Saves the Day?

These days, the real difficulty after waking up in the morning is not surviving the commute, but attempting to find an uplifting news article. Sure, there are the typical ‘cats dress up in costume’ or ‘dog saves local woman’ stories that everyone loves. However, if you have pulled into a McDonald’s drive thru or looked at their stock recently, you might not find such a bleek, depressing story.

The Chicago Tribune calls the road trip stitch ‘recession-resistant,’ proving that it is one of the only companies doing well in these difficult economic times. After it’s stock fell last year, McDonalds reported an income tax benefit and sales rose 5 percent the United States.

However, their success reaches beyond just sales and stocks. The golden arches can be found in nearly any place you can visit, making them “the best-run major international company in the world,” according to Jim Cramer, a well-known market analyst. While double cheeseburgers certainly do not compare to Italian food actually eaten in Italy, the basis of their appeal has yet to change.

Also, Forbes mentions that the real key to their success is empathy. They understand the current situation of the world, especially the United States, and are doing their best to keep their company’s practices simple and their french fries delicious.

In a place where merely bringing up the name “McDonalds” normally gets a dirty look and a scoff at best, some fashion designers showing collections this coming week at New York Fashion Week are singing a different tune. The company’s success has fueled them to aid beyond their own company and help financially back new designers attempting to make it big. Of the 200 designers showing at Bryant Park, roughly half of them are new on the scene, causing them to run into problem when people do not want to shell out the big bucks for clothes made by people of which they have not heard.

For example, one of these new designers named Duckie Brown gained McDonald’s financial support by promoting their new McCafe coffee products backstage during the show. They also have program during some of the shows where they will publish some of the designers ‘McStories.’ At this point, these 100 plus designers have no problem promoting any kind of product to get their lines off the ground…

…maybe just not feeding McDonalds to their models. That would be the real travesty.