Black Friday: Shorter lines, but bigger checks

There was a post on the impact of black Friday on the stock market. The increase in stock prices due to black Friday were predicted to cause an increase in the buying of stocks on the morning of black Friday.. After reading this I wanted to learn of what economists believed would be the effect of black Friday and found an article titled, Black Friday: Shorter lines, but bigger checks from CNNMoney’s website. The article was written on the 21st and predicted a significantly less amount of shoppers pledging to take part in the black Friday sales due to the expiration of the Bush tax cuts as well as the inability for most consumers to place early gift buying on the top of their to do list. According to the article this is due to the “fiscal cliff” and the slow economic recovery. The stores responded to the decrease in demand by offering better incentives in an attempt to maximize their profit. It is interesting to see when comparing before and after black Friday a decrease in spending was predicted yet an increased investment in the stock market was predicted to be the end result.

7:00PM 11/21/12:http://money.cnn.com/2012/11/21/pf/black-friday/index.html?iid=SF_E_River
9:00 AM 11/23/12::http://www.nytimes.com/aponline/2012/11/23/business/ap-us-wall-street-open.html?ref=unitedstateseconomy

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