Having my first City expansion game this weekend and I thought I'd anticipate one of the problems that I can't seem to find an answer for. If a character loses craft to the point where they go below the limit needed for spells, do they:

1) Lose spells over this limit? ie Player has 3 spells and Craft goes from 7 to 3 do they lose 2 spells?

2) Are the spells that are discarded chosen at random or by the player?

I can see the elementalist going below the limit often as they change between strength and craft.

Yes the player loses spells if his craft is lowered, however he can choose which spells to discard, in the case of the Elementalist he would loses all of his spells since his craft will be back to 1, assuming he didn't gain any craft.