The credit crisis in 2008 was the result of a huge debt boom that will take years to work off and will create difficult hurdles for the economy, according to FX Street.
As a percentage of GDP, household debt has averaged 55 percent over the last 60 years. In 2008, that number had gone up to 99 percent. Currently, it's at 87 percent, and there is still a long road ahead before it gets back to normal, according to the article. Federal government debt has risen from 56 percent of GDP in 2000 to 97 percent on Sept. 30, 2011. Household debt has gone down for 13 consecutive months, according to the article.
Even though recent economic indicators have show the economy is improving, there are some big hurdles to a full economic recovery, according to the article. Consumer spending continues to stay low as a result of low income, declining wealth, restricted access to credit and a bad housing market.
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