Saving is coming back into vogue in the US, says Bill Bonner. Americans need to recover their losses. But that is murder on an economy built almost entirely on consumption. And as the ailing retail sector sheds jobs, this recessionary cycle will get much, much worse.

No-one likes an economic correction, says Bill Bonner. But they are both “essential and helpful.” If left to its own devices, the market will sort out its own mess. But the Fed will never let this happen. And just like Japan in the 90’s, this will only draw out the suffering.