Handbags from Coach to Jimmy Choo are seeing a drop in purse purchases with an over-saturated market , and the struggling retail world is to blame. Even though the handbag scene is still expected to post a 4% gain this year, that is half the increase from 2006. The uber-rich can handle the continued economic changes and still afford that beautiful Hermes bag but those of us who are scrimping to get our hands on a Kenneth Cole or BCBG bag for a pretty penny will be hit the hardest. Gas continues to goes up, Christmas bills have piled up, and the housing market is anything but up... guess that means a lot of us may be downsizing our accessory budgets for 2008.