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Folks need to understand that there are two ways to create money for investments. Way one - the old fashioned way - was for folks to save and invest the funds either by depositing it in a Savings and Loan, or else invest some form of direct investment.

Way two is for the FED to create additional money and lend it to Wall Street to invest. This method creates money for investment by inflating the currency. Because the funds for investment are created, returns on savings are diminished, and therefore the incentive, or even the ability for private savings is diminished because of inflation in costs from government created funds.

In fact with further inflation and expansion of credit folks find themselves underwater just paying for necessities. It is the logical result of 20 years of Greenspan's credit expansion.