Follow the leader? Companies were doing buybacks with their extra cash instead of preparing for times of crisis. Consumers spend and spend ignoring their rainy day funds. This is common through all walks of life in this so call richest country in the world. I agree none of the current financial crisis would have been an issue if everyone and every company was saving, but that was not the case. People who now desperately need money after losing their jobs and corporations lack of cash due to lower revenue is getting bailed out. Hurt those who saved for days like today since this will lead to inflation down the road. Yet those that did save and spend within their means can sleep well at night. I am hopeful that the country will be able to get through this so I am long term bullish. Short term I am standing on the sidelines.
Part of the problem is that the government encourages you not to save. Your money sitting in a savings account loses value over time relative the price of goods and service. This is mostly because of government monetary policy. On top of that, they set interest rates artificially low, encouraging borrowing. These may not be the only factors but that are significant contributing factors.