The fact that claims on the cash-flows generated by sub-prime mortgages were embedded in a broad array of structured credit products, often layered on top of one another, explains why  2  BIS Review 148/2007  the unexpectedly severe credit losses on the underlying US sub-prime mortgages and the risk of potential future credit losses had such widespread effects on the financial system.
The recovery has not always been smooth, but overall, the gains have been impressive. In particular, the job market has strengthened substantially, and I believe we are now close to eliminating the slack that has weighed on the labor market since the recession.