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Not unlike the current alternative definition for the word 'beard', 'The Kate Spade Handbag' is a metaphor for the use of a person (in this case a man) for the masking of homosexuality. The lesbian in question can sometimes be found engaging in penetrative coitus with their handbag, and will most likely pretend to be in a committed relationship to conceal the fact that she is a raging carpet muncher. Other frequent signs are usually the lack of desire to fellate the handbag's penis and/or the history of previous lesbianism.
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