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If the parking lot is any indication, Stanford Shopping Center is keeping with holiday tradition -- despite the fact that the National Bureau of Economic Research has declared a a recession.

A silver Audi circles the parking garage three times, the driver waiting for back-up lights to signal an opening. Another driver lays on the horn in frustration as oblivious jaywalkers slow down his hunt for a parking space.

Thanksgiving weekend kicks off the ritual of holiday shopping every year. The malls may be packed but not everyone is carrying shopping bags. Many are without them, as this year seems to have brought out more browsers than buyers.

David Longbine, Director of the Stanford Shopping Center, when comparing this weekend's sales with last year's said, "Saturday was weaker than Saturday last year and Sunday was slightly below last year."

One reason for bah-humbug shoppers could be the natural caution in spending that comes with a recession. Many Americans have already felt a tightening in the economy but whether the country had slipped into an official recession wasn't known until Monday. After 10 years of expansion, the longest in U.S. history, the American economy peaked in March, according to the NBER, a private nonprofit nonpartisan organization whose assessment of the economy is considered by experts to be the last word on the matter.

The NBER website indicates that a peak in the economy marks the end of an expansion period and the beginning of a recession. The U.S. hit the peak in March.

Retailers are doing their best to put a cheery spin on a dour economy. Large, bright colorful signs with double-digit discounts are posted on doors and walls to entice consumers to spend and shop their way to a healthy economy. Bloomingdale's has discounted its fine jewelry by 50 percent, Victoria's Secret offers buy two get one free on various merchandise and other retailers have their own version of holiday bargains. In some cases, the sales are working.

Madeline Rita cares about the economy but doesn't let its weakened state prevent her from splurging atthis time of year.

"It should but it hasn't," said Rita. "Good thing my husband isn't here."

Rita and two friends have driven to Palo Alto from Hayward to get some of their Christmas gift buying done. They're watching for sales, thinking twice before making a purchase and attempting to stay within a budget.

"I'm spending less, a lot less, definitely less," said Margie Seitz, one of Rita's shopping companions. "I'm just being frugal."

Undaunted but not unaware that money is tighter these days, Rita says when it comes to her family she'll buy what she thinks they want, regardless of the item's price.

"When I run out, I run out," Rita added. "When it's gone, it's gone." The cash register at KB Toy Store in San Mateo hasn't stopped ringing since the store opened at 5 a..m. for holiday shoppers. By the looks of the hectic atmosphere, it's hard to tell anyone has a recession on their mind.

"They're actually buying," said Rosemary Fernandez, KB Toy Store manager. "It's been more busy than before, even from last year."

Fernandez said it's all the toy store can do to keep certain merchandise on the shelves. Especially popular this season is Microsoft's Xbox and the Game Cube from Nintendo. Both are electronic gaming systems with price tags of more than $200 each.

"They'll buy it if they can," Fernandez said.

Anna Swithenbank had to put several shopping bags in the car in order to have her hands free for round two. While she doesn't hesitate to make a purchase, she promised herself this year's tab would definitely be smaller than last year's.

"I'm not going to go out there and blow all of my money like I used to," said Swithenbank.

According to economists and marketing experts, the Thanksgiving weekend usually sets the tone for what the economy will bring in the following four weeks. December is a vital time for merchants, as Wall Street analysts say that's when retailers reap 25 percent of their annual profits.

"For us, the holiday shopping season comes down to the last two weekends," Longbine said. "The weekends prior to Christmas, that's where the action is."

Aggressive shoppers, like Rita, aren't going to let bad news from the economy slow them down.

"My shopping doesn't stop until Christmas Eve," said Rita as she walked off in the direction of The Gap.