It is important to understand the headwinds encountered by the Great Recession generation as they navigated a daunting job market, and the lessons they have taken from the crisis, particularly with respect to investments in education and housing.
•  The third important domestic risk remains a disorderly unwinding of household sector imbalances, which are still elevated. The continued slowing in household credit and the rise in mortgage interest rates point to a gradual unwinding of household imbalances, but recent data suggest some risk of renewed momentum in the housing market.