This is kind of a “passing the week . . .” post but first I wanted to put a collection of history tidbits and info out there for you. At the end or after you’ll find a links to a few post of interest.

 

The idea behind the term “Black Friday” is that this is the day in which retail stores have enough sales to put them “in the black” - an accounting expression that alludes to the practice of recording losses in red and profits in black.

 

So where did the term “Black Friday” come from?

 

In 1975 the shopping craze that followed Thanksgiving turned into Black Friday, in reference to the hectic crowds and horrendous traffic. Despite a slipping economy shoppers still came out in full force that year and caused several newspapers to call the day ‘Black Friday’, and thus the tradition began.

The earliest uses of “Black Friday” come from or reference Philadelphia and refer to the heavy traffic on that day, an implicit comparison to the extremely stressful and chaotic experience of Black Tuesday (the 1929 stock-market crash). The earliest known reference to “Black Friday” (in this sense), refers to Black Friday 1965 and makes the Philadelphia origin explicit:

JANUARY 1966 — “Black Friday” is the name which the Philadelphia Police Department has given to the Friday following Thanksgiving Day. It is not a term of endearment to them. “Black Friday” officially opens the Christmas shopping season in center city, and it usually brings massive traffic jams and over-crowded sidewalks as the downtown stores are mobbed from opening to closing.

The term Black Friday began to get wider exposure around 1975, as shown by two newspaper articles from November 29, 1975, both datelined from Philadelphia. The first reference is in an article entitled “Army vs. Navy: A Dimming Splendor,” in The New York Times:

“Philadelphia police and bus drivers call it “Black Friday” - that day each year between Thanksgiving Day and the Army-Navy game. It is the busiest shopping and traffic day of the year in the Bicentennial City as the Christmas list is checked off and the Eastern college football season nears conclusion.”

 

The derivation is also clear in an Associated Press article entitled “Folks on Buying Spree Despite Down Economy,” which ran in the Titusville Herald on the same day:

Store aisles were jammed. Escalators were nonstop people. It was the first day of the Christmas shopping season and despite the economy, folks here went on a buying spree. … “That’s why the bus drivers and cab drivers call today ‘Black Friday,’” a sales manager at Gimbels said as she watched a traffic cop trying to control a crowd of jaywalkers. “They think in terms of headaches it gives them.”

 

It is an Accounting practice:

 

            Look up in the red, in the black in Wiktionary, the free dictionary. Many merchants objected to the use of a negative term to refer to one of the most important shopping days in the year. By the early 1980s, an alternative theory began to be circulated: that retailers traditionally operated at a financial loss for most of the year (January through November) and made their profit during the holiday season, beginning on the day after Thanksgiving. When this would be recorded in the financial records, once-common accounting practices would use red ink to show negative amounts and black ink to show positive amounts. Black Friday, under this theory, is the beginning of the period where retailers would no longer have losses (the red) and instead take in the year’s profits (the black). The earliest known use, found by Bonnie Taylor-Blake, is from 1981, and presents the “black ink” theory as one of several competing possibilities.

 

The day after Thanksgiving in the United States. Retailers generally see an upward spike in sales and consider this to be the start of the holiday shopping season.

 

 

Historically Black Fridays have never been good events. History has shown many ‘Black’ days, most with dire consequences.

 

1.      A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold speculators, including Jay Gould and James Fist, who attempted to corner the gold market. The attempt failed and the gold market collapsed, causing the stock market to plummet.

2.      The term “black” has been used to describe other disastrous days in financial markets. For example, on Black Tuesday, October 29, 1929, the market fell precipitously, signaling the start of the Great Depression.

3.      Black Friday in January 1939 refers to Australia’s day of horrible and devastating fires.

4.      The largest one-day drop in stock market history occurred on Black Monday, October 19, 1987, when the Dow Jones Industrial Average plummeted more than 22%.

 

So what happened this time around? With the economy the way it is many are concerned. Businesses wondering about their sales (many make 30% of their income during this month) and the rest wondering about the economy.

Well I am currently working for a Toy distributor (I even worked yesterday) and the rumor from the “big boss” is that their stores reported higher sales Friday than in past “Black Fridays”.

Early data show strong Black Friday

Shoppers, clerks say ‘Black Friday’ crowds seem lighter

Is Black Friday worth it?

 

 

taxguy has a few mentions this week (and I would like to point out, it is “taxguy” not Taxguy, or Tax Guy or whatever else has been put out just plain and simple, no caps one word taxguy. Why? The same reason I guess a parent names a child Elizabeth and demands people call her Elizabeth and not Lisa, or Beth.)

 

Issue #4: Dr. Tax-O-Sphere, Or How I Learned to Stop Worrying and Love the Tax Code including pictures of your favorite tax bloggers.

Macho Macho tax blogs describes a site that shows you the chances in a blog (of a blog) if the author is male. As Joe points out it isn’t very accurate as it shows a few females bloggers ( including “Taxgirl”) as being “manly”. Although I question the overall findings, I found it interesting the score taxguy was given.

Friday inspiration: Facing an ugly reality and making changes. A mess I am in and trying to fix. An interview that I am now grateful I participated in and would encourage others to take part in this. The questions are pretty basic for everyone, if you can answer them, please respond to the request that is at the end of the post/interview.

And the Nominees for 2008 Twelve Blogs of Christmas are -

 

Okay enough about taxguy. . .

 

What the government should be doing during a recession

Tax Tips, Rates and Brackets for 2009 Returns

GREED IS THE WORD

Russia to Cut Corporate Taxes, Washington Dithers

 

Tags: black friday, economy, History, recession, retail stores, Review, stock market crash, Taxes, Week in review

Some points I think need thought about:

 

Many economists believe and are expecting that the financial crisis, the worst in seven decades, will produce the country’s worst recession since the 1981-1982 downturn.

 

The retail sales report showed that sales at general merchandise stores, the category that includes big chains such as Wal-Mart Stores, and other department stores, fell 0.4%, while sales at specialty clothing stores were down a bigger 1.4%.

 

Sales at furniture stores dropped 2.5%, with sales at appliance stores and sport goods stores also showing declines.

 

One of the few areas to show an increase was the category that includes restaurants and bars, which posted a small 0.3% gain.

 

‘09 is going to be a very bad year for economic activity and is starting to dawn on people and they are starting to digest just how bad it’s going to be.

 

The Commerce Department reported that retail sales plunged by the largest amount on record in October as consumers cut back on spending in the wake of the financial crisis.

 

Retail sales fell 2.8% last month, surpassing the old mark of a 2.65% drop in November 2001 in the wake of the terrorist attacks that year.

 

For the week, the Dow lost 4.99%, the S&P fell 6.20% and the NASDAQ tumbled 7.92%.

 

The major indexes have fallen dramatically since their highs of October 2007 as the housing and credit crises have taken their toll on the economy. The Dow is down 40% from its closing record of 14,164.53, while the S&P 500 is off 44.2% from its record close of 1,565.15. The NASDAQ is off 46.9% from its then 7 1/12-year high of 2,859.12.

 

Wall Street’s violent swings in recent weeks are part of the market’s ongoing “bottoming” process, analysts say, in which the market retests the lows hit last month. The market is expected to remain volatile, as evidenced by past recoveries from a bear market.

 

            Kay Bell has some information in her post Treasury chief defends bank loss change. I know we should all be watching this scenario very close. Are you? Personally I am not very happy with how the bailout funds are being used. I still believe this thing passed when it shouldn’t have.

            A few other need to read post from Kay, Sunday reading: check cashers and recession talk, and Closer look at bank bailout tax breaks.

 

            Stimulus Package Is Not the Same as Stimulus Check is an informative post from Kelly the Taxgirl. If you are wondering about your next check . . . well I don’t, and neither should you.

 

            Ever want to take A Trip Through the IRS Audit, Appeals and Court Procedures? Well Rob Teuber from The Tax Law Forum in Milwaukee, Wisconsin. I like the flow chart he has there.

 

            From my favorite tax blogger we have a great post of IF I HAD MY DRUTHERS - PART II. Part one was for the tax code. Part two is a wish list I am willing to bet most preparers have.

            Also from Robert this week, HERE IS A SPECIAL TAX TRICK, WHAT HAPPENS IF YOU DO NOT FILE YOUR FEDERAL INCOME TAX RETURN, TO TWIT OR NOT TO TWIT.

Welcome to Twitter Robert, however I must say I am surprised to see you there giving your thoughts on social networking sites. If we are careful, could we talk you into also using a preparation software? Well maybe that is too much. Still, I for one am surprised to see you on Twitter.

 

Things should get better by 2010 or so says The Economist looking at the GDP. This post from Andy might give you a look at what is to come. I even gave my two cents worth in the comments of this post.

Andy also gives us his Reflections on the Week.

 

In a recently added blog to my blogroll (A Personal Finance Guide), we are given some pointers to help us Get Out of the Spending Habit to Help Your Finance.

 

Bluntmoney.com is Looking for more inspiring stories. Have you paid off your debt or otherwise improved your financial life? Are you in the process of doing so? If so, she would love to hear from you.

 

Patrick over at CashMoneyLife had a great week of post. If you missed them I recommend you go check them out.

 

Last week/end I enter to win a book and was truly excited to find out that I had won. The contest was held over at Living Almost Large. The book I won you can find out about at Book Review: Birth of Plenty. This week she reviewed Book Review: Investing for Dummies.

            I am very anxious to read Birth of Plenty.

 

            Are you living paycheck to paycheck? Robbing Peter to pay Paul when it comes to your bills? If you aren’t sure or you know you are then check out Let’s Dance! Who Knows the “Bill Shuffle”? from Kevin over at No Debt Plan.

            Other need to read post from Kevin - How to Financially Prepare for Children?, ING and Virtual Bank Reminders, How to Combat Your Internal Credit Card Debt Excuses, and one that doesn’t sound right but is 10 Great Reasons to Have Credit Card Debt.

 

            Put Your Brain Where Your Money Is: Think to Save is a great post from Penelope Pince over at Pecuniarities. The key is think. Like Penelope, I think 24/7 has to be unhealthy but once or twice a day, think about it. Is there a less expensive way. For the record I have been recently call a “cheep bastard” by the most loved one in my life. This hasn’t always been with me. In fact I used to often spend money just because “shopping makes you feel better”.

 

            Monday over at Wide Open Wallet she has a great post called Not being true to yourself can lead to financial disaster. A lesson learned by many the hard way. Including myself. A great quote from the article “if you live spending every dollar, eventually you need even more.”

 

            New to my blogroll is TaxDollarsAndSense introduced to me from another tax blogger and friend with his mention of Help Yourself by Filing Past Due Tax Returns. As I perused the site I had a great smiling moment when I read IRS Secret Agent. I am hoping to get my yard mowed.

Tags: bailout, bear market, downturn, economic activity, economy, financial crisis, recession, Review, s, Taxes, Week in review

Well you can sure tell it is election time. Less than a month and we’ll be choosing the people we hope will chose the right person to take the fall for “not helping the economic situation. – If I sound a bit bitter, there is a reason.

Anyway there was last week a lot of blogging going on about the candidates and their issues as they pertain to taxes and such. Russ over at Taxable Talk gives us the breakdown of the democratic candidate in his post Taxes Under a President Obama.

Then we have a good look at just plain mudslinging and the truth behind it all in a post from Gerald Prante at the Tax Policy Blog in his post I’m [John McCain / Barack Obama] And I Approve This False Message. If you didn’t realize, you’ll now be informed.

And then as if the political “race wasn’t a big enough issue for you, then how about the bailout? Monday showed how that helped out. From around the world markets fell horribly, not to mention oil went under $90.00 a barrel (oh if you missed it, search the net for what gas was at the pumps the last time crude was down here- it’ll make you mad, or should.)

There is a great post from Andy at $aving to Invest. Covering the above debacle. And you thought last Monday was bad – Economic Indicators signal major collapse ahead Andy looks at the news on Monday that has him concerned. Me too.

Not to be forgotten is the stimulus that a lot of us received. Kelly, author/owner of the TAXGIRL blog writes a great article covering the thought of a second stimulus check in her post Second Checks from IRS NOT Part of Additional Stimulus Package. And lets us all know, “there is no second check coming before election”.

My blogging friend The Wondering Tax Pro has been on a hiatus, getting all his extensions completed. In his stead he had guest post from other tax bloggers. Our assignment was our best tax advice. If you missed it then you need to follow the links as the advice was truly the Best of the Best. On Monday, I was lucky enough to be first up with Best of the Best – Bruce McFarland, on Tuesday Best of the Best - Trish McIntire, and on Wednesday Best of the Best -  Michael Rozbruch.

For some great tax facts and other great links of the same, be sure to check out Peters post 10 Interesting Tax Facts: Three Cheers to Tax Complexification. And if you like this read back on his articles, he is very good. Oh? You know? Then click the RSS button on his site so you don’t miss anything. I did.

Paying Off Debt vs. Investing in this Economic Environment is a great post from Kevin over at No Debt Plan. It covers just what the title suggest and is a must read if you have this question.

On Thursday Kay Bell informs us that the IRS has been “given more leeway to get tough again”. In her post The ‘softer’ side of IRS collections she intros and explains a pilot program the IRS is using to help close the tax gap. The on Wednesday in her post Tax Gap closure suggestions Kay lets us in on what is being looked at (a new committee) as possible means to close the tax gap. Both are must reads from Don’t Mess With Taxes.

We have all heard that the IRS has softened. We all know that the IRS has been real asses when it comes to collecting what is due. With the IRS now given the okay to get tougher we are sure to hear some stories. Not the funny kind either. From Peter Pappas The Tax Lawyers Blog, Horrifying Tax Tales is a great intro for what is to come in my opinion. Agreeably the horror stories are usually from a tax protester, a non-filer, or from someone who doesn’t give the IRS 100% cooperation, but sometimes the horror stories are really already happing. And is going to get worse!

Not much here is there? Hummm

There has been a lot of turmoil in the world and our economic way of life here lately. A failing market, Presidential debates, unemployment on the rise, people losing their homes, 401s destroying losses. . . I just push on with my series, and such seemingly ignoring what is going on. Well I am not. If you are following my blog roll (as you should be), then you already have that information. Most every tax blogger is talking about the above mentioned situations and putting out great advice. So great that I have nothing to add, save the few (sometimes unrelated or silly) comments that I have left on their post.

I am not posting on these events. Why? Well I believe we need to stay focused on all these issues I don’t think getting lost in them is the ideal action either. I am happy to continue to give you the advice on your taxes, and leave the “News” to those who have more time to research those events than I do.

 

My series continues next week with me on Monday, A guest post from Russell Fox on Wednesday, and Friday a great post from someone who wishes to remain anonymous.

For those of you keeping up, I plan on this going through the month of October. I have only two spots left to fill (providing my two promised come through – and I am sure they will) I still am encouraging anyone who wants to get their two cents in to let me know. Should I end up with more than I will make post on days I don’t usually. To date we have had some great advice, tell us what we are missing.

Tags: Opinions, Review, tax advice, Taxes, Week in review

            Damn shame to start the week off realizing the Market can’t hold its own. Kay Bell from Don’t Mess With Taxes, let us know that the Vote was against the bail out. With any luck they’ll do something more constructive. For the low down check out Kays entry Bailout Bombs. She has a lot of good links to see what happened.

            Finially a candidate with a good idea. I know, it sounded silly when I wrote it too. But Obama Proposes Raising FDIC Insurance Limit. A limit that hasn’t been raise since 1980. Meaning roughly that in terms of the era, and inflation, the insurance would need to be almost 250,000 to be worth as much as 100,000 was 28 years ago. Some good reading on this subject at the post above from Joseph Henchman at the Tax Policy Blog.

            Taxgirl takes a great look into what it cost to keep healthy in her post How Much Does it Cost to keep America Healthy? Plus Kelly is in the mist of changing her site around a bit. Looks good too. She told me she’s still working on it so it can only get better. Go check it out at TAXGIRL.

            Over at The Tax Lawyers Blog, we get a seemingly Irish look at taxes. Funny Tax Guy Song is a good laugh. As Peter points out “He can carry a tune and the lyrics aren’t bad.”

            There is an interesting Question posted and answered by THTP in his post Ask The Tax Pro – Child Care Benefits. Please for those of you not in know keep in mind, this is an important issue that isn’t always caught by tax payers who prepare their own tax returns. Another good reason to hire a pro.

            Trent from the simple dollar gives us a great look at the “extra paycheck” we get. In his post Personal Finance Management on a Biweekly Pay Schedule he discusses how it is looked at and how it should be looked at.

            Everybody is keeping an eye on the election somehow or in some way.  From a tax point of view we want our “leaders to be tax correct. Don’t we? After all they are going to be providing tax breaks for all of us, right? Covered the Tax Prof Blog we find a Vice Presidential candidate with a “questionable” return. Please take the time to read Gov. Palin Releases Opinion Letter Justifying Not Reporting Per Diem Expense Reimbursements as Income.

            Then we have a great catch from Peter over at The Tax Lawyers Blog in his post How can a Tax Credit be “Budget Neutral?” he discusses or points out an issue from the debate.

            Russ Fox of Taxable Talk does a great job reporting on tax cheats who get caught. In his post “They Should Have Known Better” tales of several tax cheaters who should have known better.

            At the end of tax season in the year 2007 (preparing 2006 returns), I was diagnosed with asthma. As time went on it grow into quite a situation for me. I had been a smoker for a very long time (somewhere in high school when I first started) and this was frustrating. However in that time I have learned a great deal. One of the biggest problems was finding things to use that weren’t aerosol. Cleaners and air fresheners mostly. Cleaners are still a learning thing, but I think I have a handle on Air fresheners thanks to Madoline over at Our Fourpence Worth with her post Healthy Alternatives for Aerosol Air Fresheners. Thank you very much Madoline.

            Some good points are made by Any over at $aving to Invest in his post Tax-Exempt Money Market Funds are Rocking. To find out why, read this post. Also be sure to read his links as the information (both his and from the www) is very good.  He is about to inspire me to post about such things, maybe. We’ll see how next month goes.

In a great Post by Gerald Prante over at the Tax Foundation Blog, a great question is asked and answered. Is Any Ol’ Tax Cut a Good Tax Cut? No. In it you’ll find some real interesting information and thought.

            The “economic crisis” hits home for Wide Open Wallet. For her and her family, things are about to change.

            Okay, the economy is in the toilet. Most of the blogs I read are giving the “Bailout” all the press time. Blunt Money goes past what the ones in charge are doing and advises us all on How to prepare for a Layoff. We all know the economic situation sucks, it’s nice to see that some of us can look past the fools on the hill, and focus a bit on getting by as an individuals.

 

Focus is key, and we all need to focus on how we are going to get through the economic spiral. Am I for or against the bailout? You know, If I make a bad decision, and loan money to a questionable source. My mistake, and I’m not going to look for anyone to help me out. We seem to live in a society where credit is key. So why is there such a global push for us to get rid of it (i.e. get out of debt). The corporations that are failing are the same ones who have lobbied for tax cuts that afford them to take losses from previous years to offset gains this year. These same companies (not all) are claiming record profits. (like oil) It tends to make one wonder (or should) how. I heard from one client who works for a worldwide retail corporation, that in one week corporate changed/increased the price of an item three times. That item increased in price by $23.00 in a week. He also told me that he gets a list almost daily of price increases. We pay more, they make more. Maybe we should try and stop the madness. Not give it an injection of steroids that will wear out to soon.

A quote from an editor of a magazine I read regularly:

“The Fed and the Treasury Department have made it clear that they will spend and guarantee whatever it takes to prevent a collapse of the financial system. As a taxpayer you should be appalled. – As an investor, be relieved.”

And thus the bailout plan passed. Talked about at almost every blog in my blogroll. There are some good things to come out of this, but the “bailout”, the three pages that got turned down Tuesday, is still the same. Now over 400 pages later with tax extensions and other such being added (and has nothing to do with the Bailout) it passed. Then signed the same day by our President. Hold on everyone, the ride is about to get bumpy.

 

Tomorrow my series continues, I’ll be up on Monday, Wednessday a guest post from Blunt Money, and Friday a guest post from IRS-Hitman.

I also have a guest post on Monday at TWTP. He will be locked in a room next week and not wondering the blog-o-sphere this coming week. Look for the links to his guest post as they appear. Did I mention mine was going to be up on Monday? It is titled BEST OF THE BEST – BRUCE MCFARLAND. Several of us are giving out our best advice in the tax world. Try not to miss the series. (it last all week)

Tags: bailout, inflation, Opinions, Review, tax payers, taxpayers, Week in review