Singer and host Katy Perry arrive at the 2008 MTV Music award carrying the very hot Judith Leiber cupcake purse. A fanciful and beautiful cupcake, although sadly not edible, it is a sparkly rendition of the tasty treat. Covered in vanilla-hued crystals and flower detail, it is a small bag which will stow only the most tiny of accessories -- a credit card, lip gloss and perhaps a key. Retailing at $4,295, it is probably the most expensive cupcake in the world.

I don't get the appeal or price tags for the Judith Leiber handbags. These are literally "handbags", fitting in the palm of your hand. They are very pretty to look at, but what can it hold? One key, a tube of lipstick? They have no function. It would be OK in a display case, but even then they really aren't that special. It's just a metal form covered with crystals.

A very knowledgeable salesman at Neiman Marcus in Dallas told me Leiber's come back often because the crystals fall off. The crystals are GLUED on. That is just not acceptable for Judith Leiber price points. The crystals should be set. 

They have very valuable brand recognition, I guess that's why they expect an exorbitant $5,595 for this clutch.

This particular "handbag" is the Ganesh Collectors clutch, Fall 2008.