The bankruptcy of Lehman Brothers (with assets of $639 billion). The fed's buyout of Merrill Lynch. The end of Fannie Mae and Freddie Mac as we know them. Sure, all of this is going to effect the average American somehow — your taxes will now be going toward a war you didn't support and a bank you didn't have an account with — but how will it effect … the luxury market? Art! Jewelry! Real estate! Big commissions are on the line here:

Art: "Andrew Fabrikant, at the Richard Gray Gallery in New York, says the art market is bound to weaken further because of the shrinking bonus pools of hedge funders and Wall Streeters."

Jewelry: "Ruediger “Rudy” Albers, President of Wempe, the super-pricey watch purveyor on Fifth Avenue, says his sales are up more than 15% from last year [... but ... ] clients from Lehman stopped coming into the store months ago. But he has offset that with other Wall Streeters, hedge funders and shoppers from overseas. He said the store sold a $690,000 watch earlier in the year, but he isn’t sure the client would have made the purchase in today’s environment. “I’m glad we did the deal when we did,” he said."

Real Estate: "She also said the supply-and-demand equation in New York continues to support prices, since financing has dried up for new construction."

[WSJ]