For decades Americans saved ever smaller amounts of their disposable incomes. In 1980 the savings rate was 10 percent but by 2005 had fallen to minus 0.5 percent.

However, during the recession the rate rose to 1.7 percent in 2007, to 2.7 percent in 2008, and 4.2 percent in 2009. At one point in 2009 the rate hit 5.4 percent.

Some see this as bad for an economy predominantly dependent on consumer spending. But more savings translates into more capital for businesses to expand. Greater savings also provides a cushion for future downturns thus avoiding debt defaults.

More savings will eventually translate into a more robust and sustainable economy and less dependence on foreign investment in the U.S.