New efficiencies have been created and are still being created through the use of information technology. People will keep their cars longer and buy more gas efficient cars. The real point is that slower consumer spending means less pressure on inflation-exactly what the Fed wants. People are not depressed and discouraged. Employment is still high.
People have hope for the future.
The federal government budget is balanced and there is even room for a little stimulus if needed. Most of all, people recognize that they themselves caused the bubble. Therefore people do not feel that they were somehow cheated and defrauded, or that the game was rigged against them. The system allowed this crazy thing to happen, but the system itself is fair and works well. Finally, everybody knows, or thinks they know, that the only place to put their savings FOR THE LONG RUN in is stocks.