High savings are a plus since they allow more of these goods to be produced and sold. But in advanced economies, lifestyle demands are more important - second cars, second houses, yachts etc. High savings due to this lack of demand are a very clear minus. Japan's problems have a message for other advanced economies. Lifestyle demands are much more retractable than basic demands.
People can do without yachts.
This reverse boom effect, plus slump-induced pessimism, has pushed personal consumption down to its current dangerous levels. Japan's immediate task is to create the confidence that encourages people to do more spending. Reforms which increase the pessimism through bankruptcies and sudden changes are no answer. Other reforms can have some positive effect, but it will be slow and marginal. The government tries to fill some of the demand gap with deficit spending.