MAUI — The U.S. gross domestic product has returned to early 2008 levels after three long years, but it's still not where it should be according to Byron Gangnes, University of Hawaii economics department chair.

Gangnes explained that financial crisis-related recessions often do take about three years to recover so the slow going has not been that surprising. Other types of recessions typically take just a year to recover.

In particular when a housing bubble bursts, consumers' feeling of wealth deteriorates and they deleverage all the debts they built up in the good times, restraining consumption. Consumer spending account for two-thirds of the economy, which is why credit unions and others are seeing a dearth of lending, Gangnes told more than 200 attendees of The Paragon Group's Volunteer Leadership Institute.