US size 15 circular needle, 24" - 36"
Chain (or other handles of your choosing)
40" x 14" fabric for lining
10" internal Flex Frame available by special order from The Woolie Ewe through Sunbelt Fashion
3 - 5 balls Rowan Big Wool (Loop stitching is so different from person to person that the amount of yarn needed for this purse varies for every knitter. If you want to stay on a 3 ball budget, knit the loop stitches until you get done with ball #2, then use 3rd ball for the ribbed top part.)

7 sts, 12 rows = 4" in st st
Finished size: 14" wide, 6" deep, 10" tall

Loop stitch instructions: Knit into stitch but dont drop it off the needle, bring the yarn to the front in between your needles, wrap it around your thumb, and return it to the back. Knit again into the front of the same stitch, this time dropping it off. Yarn over, and bind off BOTH stitches.

CO 27 sts for purse bottom
Knit in stockinette stitch for 17 rows, ending with a right-side row
Pick up 15, 27, and 15 stitches around edge for a total of 84 sts. PM.
Round 1: *k1, loop stitch, repeat from *
Round 2: knit
Round 3:*loop stitch, k1, repeat from *
Round 4: knit
Repeat these 4 rounds 3 more times (for a total of 16 rounds)
Round 17-27: k3, p3 rib
Round 28: *k3, p2tog, p1, repeat from *
Round 29-38: k3, p2 rib
BO all stitches in pattern.
(Row 38 happened to be the end of my ball. Don't fret if you run out a few rows early, just make sure you leave enough yarn for your bind off row.)

These flex-frames are AWESOME. They're a royal pain to deal with but they make the purse very sturdy and functional. They hold the top closed tightly for security, and flip out into a hexagon shape when you need to open it.

Cut a piece of cardboard or other flat bottom device to 14" x 6" and affix to the inside bottom of purse. I poked dots in the following places to hold it together:

Fold a 1.5" seam along the 40" top edge of your fabric and sew a straight stitch across like so:

Assemble your flex-frame together at 1 end, thread it through your top seam with the right side of your fabric on the INSIDE of the frame, then assemble the other side of the frame together once the fabric is all gathered on. Pin and sew closed your fabric along the outside like so:

To make your lining fabric match the dimensions of your purse, fold the bottom corners into a triangle (so that the side seam and bottom seam are aligned with each other) and sew at the 6" mark like so:

Now you're ready to stuff your lining inside your purse and hand-stitch them together. I found it helped if I ran a temporary string of thread through the purse's ribs and pulled it tight to the size of the frame. I stitched the lining to the outside (just below the frame, about 1.5" from top edge), then removed the thread. I attached the chain handle and voila!