Another Sign the Economy Is Cooked

Over the past few weeks, pundits and economists have been sounding the alarm on a doomsday scenario for the global economy, whereby the world plunges into a financial collapse not seen since 1929.

And indeed, a piece of news out today seems to confirm our worst fears about just how bruising the downturn has become: my friends, Aga Rangemaster Group is in a bad way.

For those of you who have never researched ultra high-end appliances for your home, Aga is the gold standard of kitchen appliances, with its iconic eponymous Aga ranges costing as much as $17,000. Refrigerators, a more contemporary addition to the lineup, run a more modest $1,500 and up.

Stock in the British company is under fire after Aga said its second-half profit would be lower than expected. Sales have fallen 15 percent compared with last year, at which time more people thought it seemed prudent to spend five figures on a stove.

Those who believed that the real suffering in this downturn would be restricted to lower-income brackets have obviously never experienced the difference between an Aga and a standard issue gas stove.

The less domestically minded amongst you may say, "Who cares about kitchen appliances?"

But the slump in Aga sales calls into question where else the wealthy will be forced to tighten their belts in the coming months, and what other lifestyle compromises may be on their way.

First you're trading an Aga for a Viking, then before you know it you're driving a Lexus and wearing Brooks Brothers ties.

by Liz Gunnison

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