People were willing to pay ridiculous sums for designer clothing and accessories because they thought they had to. It was cool. Witness the incredible success of Balmain in the past couple of years, those 1,000-euro jeans and $15,000 beaded mini dresses about the size of a T-shirt. The Balmain clothes are beautifully made — no argument there — but much of the appeal was the price.
Cathy Horyn sheds some light on the reason why high-priced luxury goods had been so successful prior to the credit crunch








