Observation at the Airport

Now that everyone and her dog has a Coach bag (and I imagine they are making things for dogs now), the hipsters seem to be carrying Louis Vuitton.

Besides the fact that I don't get it - I find them ugly - I am under the impression that some of those bags retail in the four digits.  So.  How is this possible?  Multiple choice:

1. The recession is a myth
2. They are really good fakes
3. The retail cost has dropped dramatically since I last paid any attention
4. People have learned absolutely bloody nothing about managing their finances

Discuss amongst yourselves.