They have been saving like never before.

From Washingtonpost.com

For years, the world has wanted Americans to consume less and to save more. They are getting their wish. The U.S. savings rate, near zero less than a year ago, has soared to nearly 5 percent of income and could go higher. Total personal savings jumped from $20 billion in the first quarter of 2008 to a whopping $453 billion during the same period of 2009. The real danger is if the savings rate goes to 7 or 8 percent. If that happens, economic recovery could be seriously delayed.

When financial markets are working efficiently, saving is a good thing. At this point, however, with major U.S. industries at risk of complete meltdown, Americans desperately need to consume. Yet households are in a totally defensive mode because the meltdown to date has destroyed $14 trillion of their wealth. They have been saving like never before.