These are tough economic times. Even Hollywood, even celebrities must downsize. And even the famed Vanity Fair Oscar party is scaling down too.

It is one of the most coveted invitations of the year. And it will be even more so in 2009.

Normally held at Morton’s, Graydon Carter has just announced that Vanity Fair’s Oscar party will instead take place at the new It place to be, the Sunset Tower, Jennifer Aniston’s favourite place to have dinner.

Also, the guest list will be shortened. Considerably. Obviously they’re selling it as a move to increase exclusivity but the money they save from an open bar all night for people who love to throw it back won’t hurt either.

Smart location too.

Just across from the Chateau Marmont where, incidentally, Robert Pattinson was just boozing last night, so that many of them can stumble back to their bungalows to continue the debauchery. And also right beside the Standard, which is always fun for a sleepless weekend, and if you’re planning a trip around the event, at least you don’t have to walk far when your attempt to crash the party falls flat.

But the financial pinch is manifesting itself in other ways too.

30 million albums sold and even Wyclef Jean has lost his home. His $2.5 million Miami mansion now belongs to the bank after he repeatedly failed to make his mortgage payments. Wyclef reportedly gives a lot of money away to charity though it’s not known whether or not this is a reason for his woes.

Attached – some memorable Vanity Fair Oscar party photos. You can spend hours in their Oscars section.