BadTux has the analysis.
Thumbnail: In 2005, the Bush Administration, at the behest of the banks, made it harder to go bankrupt and wipe out consumer debt. As a result, people who would have been able to get out from under and then rebuild their lives and start consuming stuff have to, instead, spend years paying off much of the debt and they never truly get out from under.
They don't spend. So stores make fewer sales. Fewer sales means fewer stores are needed, so some go out of business or fire staff. Those fired employees don't spend. Less stuff is needed, so distributors order less and manufacturers make less and transportation companies haul less. The manufacturers need less equipment, or they don't have to replace it as often, so the machine-tool companies sell less. The transportation companies need fewer ships and containers and truck and airplanes. Fewer people working and less demand for freight shipments means less dead dino juice is needed.
And it all snowballs.
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