The flip side of the excess supply of savings is a deficiency of capital investment. As Federal Reserve governor Ben Bernanke said in a famous speech which popularised the notion of a savings glut, there has been a "dearth of domestic investment opportunities" in developed economies.

All the savings are mortgage loans, not investments. As long as the economy circles around real estate market and other resources, the economy gets worse. But that's the way "the middle class" wants it, that is what they get. Rising house prices and wealth from rental value. Not from wealth creation, labour.