Congress rushed the Economic Stimulus Package through so we could jump start the economy by spending our new allowance at retail outlets. But don't expect the uber-wealthy to be contributing in that fashion. When polled, more luxury consumers stated they would rather save, invest or pay down debt with their rebate checks than spend it on something for themselves. Considering these high-end buyers typically spend double of what regular households will, their lack of participation in this movement is bound to send shock waves through the economy and back to Congress who may not get the results they had hoped for. That just means the rest of us who make less than $100,000 per year need to take our checks and spend, spend, spend! Is that why we aren't rich in the first place?

The luxury market may be floundering but don't look for Saks Fifth Avenue to go down market any time soon. In an interview with MarketWatch, Saks chief executive Steve Sadove said that he is going forward with plans to renovate the company's stores, spending a projected $150 million. He is also committed to luxury brands, expanding the distribution of top-tier labels such as Chanel and Gucci, a brave move at a time when the brands that are desired most by aspirational consumers might be vulnerable to the biggest hits. Consumer confidence among luxury consumers is at an all-time historical low. Unity Marketing's Luxury Consumption Index has shown that more than two-thirds of those with an average income of $155,700 believe the economy is in trouble. Sadove, however, is looking beyond this year hoping that his strategy will pay off in the long run. You may find some particularly helpful salespeople in Saks too, part of Sadove's strategy is to have as much as 90% of the Saks sales staff working on commission, up from about 50% three or four years ago.

People who have bought diamonds any time between January 1, 1994, and March 31, 2006 may be in for a little return on their purchase. De Beers has settled a class action lawsuit for $295 million. Under the terms of the settlement individual consumers and members of the diamond trade can make a claim. The settlement is the result of a lawsuit which said that the South African company charged anticompetitive prices for the rough diamonds it sold, monopolized the rough diamond market, and disseminated false and misleading advertising. De Beers has not admitted to any wrongdoing. The rewards can be substantial, WNBC reports that a consumer who bought a $2,000 ring could get as much as $640 back. There is a settlement website for claims, which provides details on who might be eligible and those interested in filing must do so before March 19.

There has been a definite slow down in the spending habits of the average American consumer this holiday season, and although the super rich weren't predicted to be affected the modestly rich, or "aspirational consumers," were another story. They were expected to slow down with the rest of us, and it seems those predictions were right on. Some of the biggest retailers catering to both the very wealthy and the merely "well-off" are making note of major slow-downs -- and even a loss of some of their customer base as many of their lower-income clientele retreat from stores like Neiman Marcus and Nordstrom to Kohl's and JCPenny's.

Are you spending less this holiday season?

Although the super-rich are still spending money like they always do, they aren't the only ones who support the luxury market and signs seem to say that some other groups, namely the next level down, are getting a little tight-fisted with the cash. Many high-end retailers are reporting disappointing sales and drops in demand by as much as 20%, and the usually highly anticipated Christmas shopping season is looking "cloudy at best."

So far the most affected consumers seem to be households earning $50,000-$150,000, with spending suffering less as household income increases. However, experts warn that if this trend continues even the richest spenders may begin to curtail some of their habits.

The most valued luxury, according to a recent survey, is something most of us crave: time. That's just one of the findings of a report released by the Consumer Research Center of The Conference Board. All around the world, luxury consumers have similar definitions of luxury. Lynn Franco, Director of The Conference Board Consumer Research Center says that "The largest share of luxury consumers (44%) and the largest share of consumers in each country most strongly agree that 'luxury is having enough time to do whatever you want and being able to afford it.' So, for luxury consumers worldwide, time is the ultimate luxury."

What do people want besides time? Life experiences, followed by comfort, beauty and quality. No surprise then that travel is one of the most valued pursuits, second only to "high-tech" activities such as using a personal computer and other gadgets. As we saw with another survey recently, when luxury consumers collect things they often by things that might be an investment such as collections of antiques and rare items; original art, paintings and sculpture and a vacation/second home. Other prized collections include watches and jewelry, fine wine and musical instruments.

The differences across cultures were not too surprising. Americans are most interested in television, pets, fitness and electronics. British consumers are interested in Internet and cell phone usage, videos/DVDs, wine and gourmet goods among other things. Germans enjoy reading books, attending cultural events, gardening, and home furnishings. Italian consumers share many of the same interests as those in Germany, but they are more active in travel. French consumers are also similar but with a bigger interest in in gourmet food and wine. China has the greatest interest in photography, electronics, and home furnishings.

What is the definition of luxury for those who are dubbed luxury consumers? For most luxury is defined as being noticeably a cut above the average. The cost is not as important as the experience and feelings that consumers get in enjoying their luxury lifestyles.. Luxury is being able to pursue one's personal passions and interests. For most luxury is not about conspicuous consumption although they do look to a brand's reputation as a sign of quality. It is no surprise that the only country in which a large part (46%) of consumers believe luxury is defined by the brand is China.

And attitudes toward brands are shifting. A new book set to come out, Deluxe by Dana Thomas, which features fast food wrapped with Prada labels on the cover, takes on the idea of modern luxury. She profiles the European fashion houses which have evolved from companies known only to the elite few, to monster brands that sell to millions. It makes me wonder if the rise in "masstige," selling luxury to the masses, might be the very thing that compromises the luxury goods market.