According to a recent survey by American Express 80 percent of America's
richest households are looking across the board at where they can cut
spending--with those already pinching pennies up by over 30 percent in the
last three months. Jeanne Yurman reports from New York.

When the economy sours it's often the "little guy" who takes it
on the chin.  But in this downturn - even the upper crust is taking a hit.


Nordstrom and Saks Fifth Avenue, two retailers catering to the wealthier
set, both recently reported double digit profit declines.   While luxury
autosmakers like MercedesBenz have seen monster drop-offs in sales this year. 
Ben Garber is an Economist at Moody's.

BEN GARBER, ECONOMIST MOODY'S saying  ...it's a
direct relfection of the job losses in the financial sector, construction. 
The financial sector's lost 150,000 jobs from its peak and its definitely
affecting purchases right up and down the line for retailers from luxurys to
the lowest end. 

According to a recent survey by American Express 80 percent of America's
richest households are looking across the board at where they can cut
spending--with those already pinching pennies up by over 30 percent in the
last three months.  Jewelry, restaurants, cars  vacations... all areas where
they're dialing back.

In Fairfield County, CT, home to many Wall Street's wealthiest, the real
estate market is in a rut not seen in over 15 years.  The toniest zip codes
not immune to foreclosures.

Cold comfort for others losing their jobs and their homes ...but the top
10% of  US households by income account for nearly a quarter of all consumer
spending.

BEN GARBER, ECONOMIST MOODY'S saying  The rich
cutting back on their spending has a big knock-on effect on the rest of the
economy.  They support a huge service sector that caters only to their needs. 
You look at people that serve only the rich like dogwalkers and spas--there
you see a big cutback in the wealth their receiving. 

The well heeled are unlikely to loosen the purse strings anytime soon. 
Both Nordtsrom and Saks issued tepid outlooks for the rest of the year  And
with more than $400 billion in credit losses, Wall Street bonuses are
projected to plunge as much as 40% for 2008.