American Consumers Are Saving More:

A voice of sanity:

“If American consumers are less indebted, live within their means and have more money in savings, they are better positioned to spend on a sustainable basis for years to come,” said Greg McBride, senior financial analyst at Bankrate.com. “As painful as that is economically in the short run, these developments will better serve us in the long run.”

—Jack Healy "Consumers Are Saving More and Spending Less" The New York Times

After years of being told they are foolish for not saving, Americans now are saving at least a little money. It appears that lower gasoline prices hasn't caused everyone to run out and buy a new SUV and drive it as if there were no tomorrow. Gasoline prices—although they've been steadily rising lately—account for some of the savings. And Americans have realized that if they don't absolutely need a new car that maybe they can wait a while before purchasing one. But the big savings has come from not buying another newer and bigger home. It seems Americans have finally realized that 1) there is no housing shortage and 2) there is no natural law requiring real estate values to perpetually go up.