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'I've never been much of a shopper myself," an elegant Barbara Walters confided before the Oscar de la Renta show in New York last week. "Actually, this suit I'm wearing is an Oscar that's six or seven years old."

While the seventysomething broadcast legend conceded that it's important to keep the economy going, we all know that our consumption habits are changing. And it was that transformational mood that American designers were scrambling to address at the fall fashion collections.

And while there were lots of sober palettes on the runway, the real story was colour.

Marc Jacobs, arguably America's most influential designer, was among a number of designers playing down the social aspect of the week. But while he slashed his guest list, his clothes had a more hopeful message.

In hot pink, yellow, emerald green and purple, his satins, velvets and metallics were reminiscent of the early eighties. "I wanted to capture something that I saw growing up here in New York City … a time when people got thrilled about dressing up and went to clubs," Jacobs said.

Michael Kors's advice, on the other hand, was to "stop eating pizza" - to cut out the junk in our wardrobes and invest in quality. For the fall, he showed beautifully cut cashmere pieces, some featuring oversized shoulders and pencil skirts with thigh-high slits. But the biggest punch came from Day-Glo shades of orange, pink and yellow that surfaced in sweaters, dresses and shaggy fur coats. "We've got the smartest President and first lady that we've ever had in the White House," Kors said. "That's setting the tone for our approach to everything, including fashion."

Narciso Rodriguez, one of the designers who dresses Michelle Obama, showed wild black-and-white camouflage prints and dresses in highlighter yellow and pink. Pewter and onyx Lurex ensembles lent a space-age feel, while silver zippers down the backs of dresses were just plain sexy.

Jack McCollough and Lazaro Hernandez of Proenza Schouler know how to please their audience, which included Mary-Kate Olsen and Nicole Richie. The label's trademark bustier dresses were worn as jumpers, and some of the shoes were made from Oriental carpets. "We wanted to riff on the idea of cocooning, of having this cozy feeling, because that's what these times are all about," McCollough said.

Vera Wang staged her collection at her new West Village boutique. "I just wanted this to be more about the clothes," she said. Inspired by art collector Peggy Guggenheim's life in Venice, Wang sent out an elegant assortment of loose-fitting dresses and coats, many in moiré organza. Black scuba corsets and skirts were juxtaposed with taffeta.

Meanwhile, Rodarte, the hot California label designed by sisters Kate and Laura Mulleavy, delivered more of their distressed chic. Earth-tone garments, embellished with chiffon and Swarovski crystals, had a ragged, handmade look. "We were driving down the highway, and saw all these discarded construction materials, from old pieces of insulation to broken slabs of marble," Laura said.

Calvin Klein's Brazilian-born designer Francisco Costa offered one of the most fashion-forward collections, with jacquard, techno jersey and felted wool combined in sleek and asymmetrical forms. Hemlines rose at the back of the knee, falling longer on the sides. Dressier looks came in velvet with a painted crackle print or laser-cut silk. And a yellow-green shade dubbed "sulphite" was a shock in an otherwise sombre palette. "I spent time in Santa Fe," Costa said. "I wanted to recreate the crackled look of the desert and play with textures."

Costa pointed out that the Thirties were a wildly creative time for design. Similarly, these current tough times may end up stimulating a creative renaissance of sorts.

Ralph Lauren, on the other hand, retreated to the manor house. Fitted tweed jackets were worn over flowing lace dresses; jodhpurs in suede and crushed velvet were paired with embroidered Mongolian shearling vests and coats. A palette of cream, champagne and gold made for a rich and reassuring vision for fall.

Zac Posen also dished out the glam, with a runway show featuring five Steinway baby grands. Claire Danes, Nicole Richie and Sandra Bernhard were among the guests of the show, which featured ultrafeminine forties looks in opulent draped metallics.

Unquestionably, designers are fighting for their lives and livelihoods. And while the new guard - Alexander Wang, Jason Wu, Jonathan Saunders, Phillip Lim - had strong showings, one wonders just how much fashion the market will be able to support.

Still, Oscar de la Renta seemed unfazed. "It's like when you're planting," he said. "There's a time to sow your seeds, and there's a time to clear away those plants that aren't really taking root. I think this is an important time in fashion. The strong will survive and everything else - all those things that aren't working - will finally disappear."

To the strains of Mercy Mercy Me, his eclectic collection emerged: a romantic lace blouse with oversized sleeves, a one-shouldered leopard print gown, pouffy skirts in brightly coloured satins. The times they are a changin' all right. But for diehard fashion fans, hope for next fall springs eternal.

Jeanne Beker is the host of Fashion Television and editor-in-chief of FQ.

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