I have presented the crocheted Masa bag before, the knitted folded bag is the knitted version of the thing :)
I liked especially the colouring of the bag on the picture!
Knitted Folded Bag (Tolt Folded Bag with Veronika)
via: Tolt Folded Bag
Here at unikatissima:
How modern or retro (= ‘old fashioned’) the hankie purse looks depends on the used hankie ;-)
I find the idea amusing :)
Hankie Purse (Craft Tutorial – Hankie Envelopes)