A shift toward thrift? ‘What we have is what we have’

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You make the call: an ominous retrenchment or an overdue return to sanity?

The New York Times reports tonight that Americans are shifting toward thrift: ‘... now the freewheeling days of credit and risk may have run their course — at least for a while and perhaps much longer — as a period of involuntary thrift unfolds in many households. With the number of jobs shrinking, housing prices falling and debt levels swelling, the same nation that pioneered the no-money-down mortgage suddenly confronts an unfamiliar imperative: more Americans must live within their means.’

Story quotes Lisa Merhaut, whose family has switched to an all-cash, pay-as-you-go budget: “We don’t use our credit cards anymore ... What we have is what we have. We have to rely on the money that we’re bringing in.”

Economist Ethan Harris of Lehman Brothers predicts a return to saving ‘the old fashioned way’ -- that is, actually saving money. Like, spending less than you earn.

Your thoughts? Comments? Insights? E-mail story tips to peter.viles@latimes.com.