With much of the nation reeling from what threatens to be a protracted and widespread economic downturn, the New York Times is reporting that the very rich are still not feeling the pinch. Consumer confidence is at its lowest point in five years, but the wealthiest Americans, it seems, have yet to curtail their spending habits, shelling out for fast cars, exotic vacations and lavish parties. The fact is that individuals with more than $30 million in the bank, and more than one million in household income, are unlikely to adjust their spending because a small percentage of subprime loans are defaulting. Even for those individuals whose portfolio may have taken a beating this year on the stock market, discretionary spending represents such a small percentage of the wealth of the ultra-rich that even the most extravagant purchases are unlikely to be renounced.

While the bulk of the Times piece is merely anecdotal—it’s hard to know whether the personal accounts of the individuals profiled really amount to more than a few isolated cases—the one economic indicator that is cited (that sales this year of New York City apartments above $10 million is outpacing last year’s sales) is telling of the nature of the ultra-rich’s economic resilience. Even if current economic woes are the result of an overinflated real estate bubble, those who may be in the best position to weather the turbulence are ironically those who are heavily invested in land—provided it’s in the right place. Along with its sustained status as an economic and cultural center, the geographical constraints of the island of Manhattan makes real estate prices there all but immune to market slowdowns. The same is true of cities like San Francisco, or the most high-end and well-established resort destinations such as Aspen or Vail.

Jet Sales Still Booming

If the ultra-rich are feeling a bit cheap these days, they haven’t shown it by cutting back on their preferred method of transportation. Private jet travel providers have not reported much of a slow down. “There was a bit of a dip in travel in the week after the Bear Sterns collapse,” said Nick Solinger of XOJet, “but the next, people got back to work and we were right back up to the same level as before.” This, in spite of not only the economic bad news, but also record-high gas prices which are making private jet travel more expensive than ever. Jet manufacturers have yet to see a decline in their sales figures either, with orders still filling backlogs for years to come. It is possible of course that orders are being buoyed by strong international demand from Russia, the Middle East and Asia. There is also the fact that, as reported by Robert Frank of the Wall Street Journal, jet demand often lags two to three quarters behind the general economy, meaning a potential decline in the private jet market may still linger ahead on the horizon.

Yacht sales also remain strong this year but, interestingly, prices have fallen considerably, per another Robert Frank blog posting. Manufacturers are still able to fill up order books, just not at the prices they had commanded when the economy was at its height.

Auction house Sotheby’s had record revenue last year, and has reported sales for the first quarter that are 3% higher than in 2007. At the same time, Sotheby’s is owed more money from buyers than at any time in its history. Sotheby’s high accounts receivable—standing at $835 million for last year—is an indication that buyers still have a willingness to spend, but that they may need a bit more time to arrange their finances in order to pony up for that Miró.

What the fall in yacht prices, the higher than usual accounts receivables for Sotheby’s and even that week long downturn in private jet travel indicate, is not so much that the ultra-rich are feeling the need as of yet to curtail their spending, but that a seed of wariness may have been planted in the well-tilled gardens of the wealthy. If the recession persists, this sense of caution may transform itself into something more concrete, with the ultra-rich cutting back on spending even if their ample pocket books can bear it.