This pattern is called a birds nest bag. A purse that is knitted using roving wool plus any novelty yarns that you want to throw in. Since roving wool is not strong on it's own - it rips apart very easily, another yarn must be knitted with it for the entire pattern.
I used red wool yarn when I wasn't using a novelty yarn. It's an easy circular pattern - knitted.
I'm about ready to add the shoulder straps.