Instructs a news story at the Detroit Free Press (Freep.com):

Households pushed their savings rate to the highest level in more than 15 years in May as a big boost in incomes from the government’s stimulus program was devoted more to bolstering nest eggs than increased spending.

The higher savings rate is healthy in the long term, economists said. But without vigorous consumer spending, the government may have to do more to revive the economy, possibly through further tax breaks and spending.

This is the idiot line we are given: that saving, while necessary in the long run, is bad in the short run. When does the long run arrive? We are never told. Nor is there any explanation of how spending every dime you have or can borrow, and everyone else doing so, is the way to wealth as versus bankruptcy. Thank goodness people are no longer being fooled by the Fed, at least in this correction. But savings are still way too low. We need Japanese and Chinese levels: 20%, 30%, 40%. Sound economics as well as self-interest dictate that we save every penny we can, and pay no attention to Keynesians from Krugman to the appropriately named Freep. (Thanks to Bob Roddis)