rules on INSERT can't UPDATE new instance?

From the create_rule man page this example is offered:

CREATE RULE example_5 AS
ON INERT TO emp WHERE new.salary > 5000
DO
UPDATE NEWSET SET salary = 5000;

But what is "NEWSET"? Is it a keyword?

My problem is that on an insert with an invalid amount I try to perform
an update with a corrected amount, but the action part of the rule
doesn't affect or "see" the newly inserted row (or so it seems).

I tried: CREATE RULE ON INSERT TO bid WHERE new.price > limit
DO UPDATE bid SET price = 0.1;

and all price columns in the bid table would be set to 0.1 _except_ the
newly inserted row.

Am I missing something obvious?

TIA

--
Louis-David Mitterrand - ldm(at)apartia(dot)org - http://www.apartia.fr