Godfather of the Hamptons, Steven Gaines, explains in New York Magazine that the Hamptons is suffering through the financial crisis along with the rest of us. It’s even taken a bite out of ArtHampton’s sales which were down significantly this year:

Last month Moody’s downgraded East Hampton’s credit rating and revised its outlook from stable to negative, “citing depletion of the town’s financial reserves.” And at this year’s Art Hampton, a baby Art Basel that was attended by 8,000 people, sales were down 40 percent to $6 million. When the Parrish Art Museum broke ground for a new Herzog & de Meuron building last month, it had to settle for a modest $25 million building instead of the dazzling, $80 million, pre-crash version. Yes, people are really hurting.

Recession, Hamptons Style (New York)