A lot of consumer spending was fueled by mortgage refinancing proceeds.

Property is worth substantially less now.

This would apply to big ticket items, durable consumer goods, cars, appliances, furnishings ...

People still buy necessities like food, medicine, clothing etc ...

The unemployment is certainly a factor.

People also feel poorer, their retirement accounts, if stock based, are worth considerably less.

Also, inflation based cost of living increases are non existent now, there has been little inflation officially to cause wage rates and social security payments to increase.

Bottom line ? there is less spendable income today ? a perfect storm.