If you wanted one chart that explained the sluggish recovery, this would probably be it.
Courtesy of Deutsche Bank, it shows that household balance sheets remain a disaster by any historical measures.
At this level of relative household (in-)solvency, there’s little hope for robust spending. The only way out is for more deleveraging, a big surge in the home market, or perhaps a huge rally in stocks. Obviously the Fed is praying for one of the latter to.