Nightly News   |  July 06, 2012

Financial shock to ‘linger for many years’

CNBC’s Steve Leisman and NBC’s Chuck Todd examine why job numbers are lagging and to what degree the Obama campaign is concerned. Despite the disappointing employment numbers, there are a few reasons for optimism: gas prices are down and housing prices have ticked up.

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This content comes from Closed Captioning that was broadcast along with this program.

>> report. let's get the story behind those numbers from cnbc's steve liesman and our chief white house correspondent and political director chuck todd . steve, i'll begin with you. the question probably most of our viewers have why on earth is it taking so long for jobs to come back?

>> reporter: let me tell you first where economists agree, they agree that the financial shock from the financial recession or crisis is one that will linger for many years. consumers are still shedding debt. the housing market has still not come back in a meaningful way. typically housing leads to recession. there is more debate on the issue of president obama 's regulatory policies, the health care debate, fiscal deficits, things holding businesses back from hiring. that's really both in the political sphere and in the economic sphere.

>> speaking of the political sphere, chuck, we know no president since fdr has won re-election with unemployment higher than 7.2%. there has to be some nervousness in the obama campaign .

>> reporter: they've always believed their opponent is not mitt romney . their opponent is this economy. and this is stagnation is something that they think they know how to muddle through and win an election like this but it's certainly not the way they prefer. they did expect to see the economy growing a little bit more and you could just see in the president's body language today when he made his remarks about the job numbers, it took him 20 minutes to get there because he has to explain the depths of the recession to convince voters why we haven't recovered yet but recovery could still come.

>> steve, you heard tom costello say there are some positives. should we be optimistic?

>> there are a few reasons for optimism. tom ticked a couple off. gas prices are down. high gas prices may have been something that really slowed down hiring in the spring and now into the summer here. housing has kicked up off the bottom. we have some rising house prices . wages were also pretty decently in this report. those who are working are making a little more and they are working a little bit longer in terms of the work week lengthen lengthening out. the big question being does europe get its act together? we've also been hurt a bit, kate, by the slowing global economy . that's a question that we really can't solve from here.

>> something to keep an eye on. chuck, is this the issue from here on out until november?

>> well t. is. certainly the mitt romney campaign believes it is the issue and it believes that the stagnating economy is why romney will end up in the white house . we'll see. but it was a reminder today. you know, for the last week, kate, what have we been talking about in politics? anything but the economy. been talking about health care , all of these things. but these numbers are a reminder that front and center what voters care about is this economy. it's what the romney campaign thinks is their ticket to the white house .

>> chuck todd , steve liesman , thanks so much for the perspective tonight.

>>> the jobs report sent stocks down today. the dow fell nearly 125 points. nasdaq down 39. the s&p down almost