Southampton - The economy continues to sink and folks are holding their breath about the success of the next bailout but at least the folks on Fashion Avenue have a reason to feel a little upbeat with our new First Lady Michele Obama gracing the cover of the upcoming edition of Vogue and giving American fashion - at least moderately priced styles - a boost.

The stylish Michelle Obama, now First Lady of fashion.Photo courtesy of www.bet.com

Sporting a chic magenta silk sheath by her inaugural ballgown designer Jason Wu, she has already given young designers some reason for hope. Ditto Montauk's Mickey Drexler and his gang at J. Crew who are hearing the sweet sounds of ca-ching as Michelle wore a number of pieces from their collection on the inside spread. Now that Vogue editor-at-large Andre Leon Talley has anointed Michelle as the reigning queen of American fashion on the cheap and virtually knighted Jason, I suppose I'll have to call him Sir Jason - but no curtsying for sure.

Real good news for the Paltrow-Martin's of Amagansett! Chris Martin, lead singer of Coldplay, and his gang took home three Grammys, including Song of the Year, Best Rock Album and Best Pop Performance by a Duo or Group with Vocals all for "Viva La Vida," the band's first number one single in the U.S.). Wife Gwyneth Paltrow was clearly ecstatic but as always the pair go their separate ways and are rarely caught together by Hollywood's infamous paparazzi. Gwynnie was spotted several nights later at the EIF Women's Cancer Research Fund benefit getting down on the dance floor with Jay-Z while his wife Beyonce provided the background music.

Here's a sweet story just in time for Valentine's Day. New to Southampton Rachael Ray hasn't had a lot of time to work on her new digs. As if hosting a daily TV show, cranking out cookbooks and promoting her YUMO good nutrition for kids program with former President Bill Clinton wasn't enough, she organized a massive group wedding in Houston this week. Touched by stories of couples who were devastated by Hurricane Ike which leveled the major reception halls and bridal stores where the brides had used all their savings for their big day, Rachael and her crew tossed a bang-up, fireworks fueled mass wedding for 33 couples in Houston's Minute Maid Park. Rachael who is very happily married to John Cusimano was crushed by the plight of these young couples and along with pal Wynonna Judd gave them a wedding to remember forever.

The irresistible Paltrow-Martin's.

Don't think he's ready for another walk down the aisle yet but Russell Simmons is sure sweet on Henderson Grapefruit heiress Julie Henderson, who also happens to be a Sports Illustrated bathing beauty. The tabloids and paparazzi have chronicled the pair's romantic dinners at such hot spots as Waverly Inn and Stone Rose at Time Warner Center. Kissing and other kinds of canoodling have been reported but my always in the know friend James Edstrom of TimesSquareGossip.com tells me Russell isn't likely to hit the chapel any time soon.

The young Beach Club set will be thrilled that designer Alvin Valley who several seasons ago shuttered his Jobs Lane outpost took a two-year hiatus from the biz, will re-launch his collection at the Altman building this week The runway presentation will be followed by a private dinner at Via dei Mille for his very special gals and after party at the new nightclub, M2.

After losing the much loved Jim Brady, locals are praying real hard for another legend, Dominick Dunne long a fixture at the best Hamptons soirees. Reportedly, Dominick is being quite optimistic, especially after undergoing stem cell treatment in the Dominican Republic that seems to be fighting his bladder cancer, diagnosed seven months ago.

The Fair Media Council presents the Folio Awards on May 1 at the Crest Hollow Country Club. This year FMC's Folio Awards will be a special 30th anniversary celebration. Keynoting the Fair Media Council's Folio Awards will be two media icons: WNET/WLIW Public Television's William F. Baker and former CBS anchor Dan Rather. Co-hosting will be the WPIX anchor team Kaity Tong and Jim Watkins of Westhampton.

Designer Alvin Valley. Photo courtesy of NY Social Diary

Long-time East Ender Susan Lyne broke out the champagne; well maybe it was Prosecco, to celebrate the success of the fledgling Gilt Groupe of which the multi-talented Susan is CEO. Gilt Groupe is a fast-growing e-commerce company offering designer fashion and luxury goods at sample-sale prices. Seems she and her cohorts started at just the right time with even the money-ed Park Avenue set looking to pinch a few pennies. Susan you may remember served as President and CEO of Martha Stewart Living Omnimedia (MSLO), where she led the company's recovery and return to profitability.

Though we're all feeling the pinch, you can be sure that many of our favorite charities and causes are feeling it drastically as Wall Street has played such an important role in funding everything from the arts to education to the myriad of diseases. As a result, many groups have to rely even more on special events to fill the gap. So expect to see the event fever ramp up and do the best you can.

Some organizations realize our purses are being squeezed and are hosting what I term "recession aware" benefits and offering real entertainment value at a price somewhat less than a car payment. I was so delighted to receive an invitation from Southampton's Penny and Jay Lieberman and Comedy Queen Caroline Hirsch for a theater party event that is sure to be a sell-out.

The three friends along with Heather and Michael Rosen, Jeanne Sdroulas, Kenneth Arbeeny and Susan and Samuel Williams are hosting a special evening to benefit The AHRC Foundation which supports programs and services for children and adults with intellectual and developmental disabilities.

The group are hosting a theater party preview of four-time Tony Award winner Susan Stroman's latest venture "Happiness" at the Mitzi E. Newhouse Theater at Lincoln Center on March 11. The $200 ticket gets you a prime seat and a pre-theater dinner at O'Neal's the popular West Side eatery.