Spending Spree

I have to say, I was shocked at the news that Black Friday spending was up this year by 3% over last year, especially as news broke yesterday that the U.S. is officially in a recession (which is not exactly a news flash to anyone who has been paying any attention to the economy).  

Personally, I have lost a lot of my love for shopping lately, as I'm sure you've noticed from my recent lack of blogging.  I just haven't been shopping lately, and haven't even wanted to.  Instead, I've been doing something radical--saving.  I've been shopping for the best c.d. and savings account rates instead of shoes and clothes.  My reaction to all the bad economic news is to withdraw from the spending cycle and institute a bit of a spending freeze.  It makes me feel better to have no credit card debt and money in the bank than a closet full of new clothes or a pile of Christmas presents under the tree.  Maybe some people's reaction is just the opposite--maybe spending more in the midst of this economic crisis somehow makes them feel better.  If so, that smacks of some serious denial to me.  Or maybe the crisis just hasn't affected them--yet.  

While I haven't been personally affected by the economic downturn (other than the free fall of my 401(k)), my instincts are to cut back on spending and increase my savings.  I have a set budget for Christmas presents, and I stay within it.  I hope most people are doing the same.  I find it scary to think about people going out and charging a lot of expensive electronics and gifts on their credit cards right now. I hope that this economy will make people focus less on spending and more on saving.  This New York Times article seems to indicate that at least some people are cutting back, even though for the people profiled in the article it appears to be by necessity rather than by choice.