Save! (But Not Too Much.)

Americans are getting thrifty just when we should be spending more.

By Daniel Gross
Posted Friday, Oct. 24, 2008, at 3:55 PM ET

Thrift, like the repossession business, is a classic counter-cyclical industry. When the gross domestic product shrinks and the bulls are stricken, Americans are called to rouse themselves from a consumption-induced daze and start saving and investing rather than borrowing and splurging. At about this time in the economic cycle, we hear a lot more from Warren Buffett and a lot less from Donald Trump. Coupon-clippers are exalted, and high-flyers are laid low. Of course, once the good times begin to roll again, the calls for thrift subside.