PBS NewsHour; April 13, 2010 7:00pm-8:00pm EDT

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Lehrer: GOOD EVENING. I'M JIM LEHRER. PRESIDENT OBAMA SAID TODAY THE WORLD IS A SAFER PLACE AFTER THE NUCLEAR SECURITY SUMMIT. ON THE NEWSHOUR TONIGHT, JEFFREY BROWN REPORTS FROM THE CONFERENCE OF WORLD LEADERS, AND WE'LL TALK TO U.S. UNDERSECRETARY OF STATE ELLEN TAUSCHER. PART 2 OF OUR WEEK-LONG SPOTLIGHT ON WHAT AMERICANS THINK ABOUT THEIR GOVERNMENT. OUR FOCUS TONIGHT THE HEALTH CARE. FIRST BETTY ANNE BOWSER LOOKS AT HOW PASSING A NEW LAW DIDN'T END THE DEBATE.

>> IT'S GOING TO MAKE HEALTH CARE AFFORDABLE. IT'S GOING TO MAKE IT SO THAT I THINK, YOU KNOW, UPWARDS OF 94% OF THE POPULATION WILL BE COVERED.

>> I THINK READING THE LAW, READING WHAT WAS SIGNED ON THAT BILL, I WOULD SAY WE'RE HEADED INTO A HUGE, HUGE BUREAUCRATIC PROBLEM.

>> Ifill: WE TALK TO FOUR FLORIDIANS ABOUT HOW GOVERNMENT'S EXPANDED NEW ROLE WILL AFFECT THEIR LIVES AND THEIR LIVELIHOODS.

>> Lehrer: AND IN A SPOTLIGHT CITY FOLLOW-UP FROM LAST NIGHT, RAY SUAREZ LOOKS AT WHAT BANKS WILL OR WON'T DO TO HELP TROUBLED HOMEOWNERS. THAT'S ALL AHEAD ON TONIGHT'S NEWSHOUR. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY: THE NATIONAL SCIENCE FOUNDATION. SUPPORTING EDUCATION AND RESEARCH ACROSS ALL FIELDS OF SCIENCE AND ENGINEERING. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Lehrer: THE WORLD NUCLEAR SUMMIT WRAPPED UP TODAY IN WASHINGTON. PRESIDENT OBAMA AND OTHER LEADERS PLEDGED NEW ACTION TO KEEP NUCLEAR WEAPONS OUT OF THE HANDS OF TERROR GROUPS. JEFFREY BROWN BEGINS OUR COVERAGE.

>> Brown: THE PRESIDENT OPENED THE SECOND DAY OF HIS NUCLEAR SECURITY SUMMIT WITH A WARNING.

>> TWO DECADES AFTER THE END OF THE COLD WAR, WE FACE A CRUEL IRONY OF HISTORY. THE RISK OF A NUCLEAR CONFRONTATION BETWEEN NATIONS HAS GONE DOWN. BUT THE RISK OF NUCLEAR ATTACK HAS GONE UP.

>> Brown: AFTER THE PRESIDENT'S REMARKS HE AND THE LEADERS OF 47 OTHER COUNTRIES WENT BEHIND CLOSED DOORS TO TALK ABOUT WHAT THEY COULD DO INDIVIDUALLY AND COLLECTIVELY TO SECURE NUCLEAR MATERIALS. EVEN WHILE THOSE TALKS CONTINUED THE ADMINISTRATION COULD POINT TO SOME PROGRESS ON THE SIDE LINES OF THE SUMMIT.

>> SECRETARY OF STATE CLINTON AND RUSSIAN FOREIGN MINISTER ....

>> Brown: THIS AFTERNOON SECRETARY OF STATE HILLARY CLINTON AND RUSSIA'S FOREIGN MINISTER FINALIZED A TEN-YEAR-OLD DEAL TO REDUCE EACH COUNTRY'S EXCESS STOCKS OF WEAPONS GRADE PLUTONIUM.

>> UNDER THE AGREEMENT WE ARE ABOUT TO SIGN THE UNITED STATES AND RUSSIA WILL EACH IRREVERSIBLY AND TRANSPARENTLY DISPOSE OF NO LESS THAN 34 METRIC TONS OF WEAPONS GRADE PLUTONIUM. TOGETHER, THAT IS ENOUGH MATERIAL FOR NEARLY 17,000 NUCLEAR WEAPONS. AND WE WILL PUT IN PLACE THE FRAMEWORK AND INFRASTRUCTURE NEEDED TO DISPOSE OF EVEN MORE PLUTONIUM FROM DEFENSE PROGRAMS IN THE FUTURE.

>> Brown: THE U.S. ALSO ANNOUNCED A DEAL WITH ITS NORTH AMERICAN NEIGHBORS TO RID A MEXICAN NUKE LOOR REACTOR OF ITS RELIANCE ON HIGHLY ENRICHED URANIUM. AT THE SAME TIME YESTERDAY'S MEETING BETWEEN PRESIDENT OBAMA AND CHINESE PRESIDENT HU CONTINUED TO DRAW ATTENTION. QUESTIONS OVER THE EXTENT OF CHINA'S AGREEMENT TO WORK WITH THE U.S. ON SANCTIONS AGAINST IRAN. IN BEIJING TODAY, A FOREIGN MINISTRY SPOKESWOMAN SAID SANCTIONS AREN'T THE ONLY SOLUTION TO IRAN'S NUCLEAR AMBITIONS.

>> (TRANSLATED:) WE ALWAYS BELIEVE THAT DIALOGUE AND NEGOTIATION ARE THE BEST WAY OUT OF THE ISSUE. PRESSURE AND SANCTIONS CANNOT FUNDAMENTALLY SOLVE IT. WE BELIEVE RELEVANT ACTIONS BY THE UNITED NATIONS SHOULD BE CONDUCIVE TO EASE THE SITUATION THERE AND CONDUCIVE TO PUSHING FORWARD A SOLUTION THROUGH DIALOGUE AND NEGOTIATION.

>> Brown: IRAN INSISTS ITS ENRICHMENT ACTIVITIES ARE PEACEFUL, BUT THE OBAMA ADMINISTRATION IS SEEKING TOUGH SANCTIONS TO KEEP IT FROM BUILDING NUCLEAR WEAPONS. IRAN WAS NOT INVITED TO THIS WEEK'S SUMMIT. TODAY IN TEHRAN, A FOREIGN MINISTRY SPOKESMAN SAID CHINESE-BACKING OF A NEW ROUND OF SANCTIONS WAS HARDLY ASSURED.

>> (TRANSLATED:) WE DON'T CONSIDER SUCH STATEMENTS AS THEIR APPROVAL AND SUPPORT OF THE U.S. AUTHORITY'S UNJUST MEASURES, ALTHOUGH WE HAVE REPEATEDLY SAID THAT THE ISSUE OF SANCTIONS AND GOING TOWARD INCREASING SANCTIONS IS A LOGICAL AND UNFAIR AND WILL NOT HARM THE IRANIAN NATION'S WILL TO ACHIEVE ITS RIGHTS.

>> Brown: IT WAS ALSO REVEALED TODAY THAT SECRETARY CLINTON MET PRIVATELY LAST NIGHT WITH THE PERMANENT MEMBERS OF THE UNITED NATIONS' SECURITY TOWN IS SILL IN GERMANY TO DISCUSS THE NEXT STEPS ON IRAN. STILL, THE PRESIDENT TODAY KEPT THE FOCUS ON THE NUCLEAR TERRORISM ISSUE. THIS AFTERNOON AS THE TALKS CAME TO A CLOSE, HE UNVEILED AN AGREEMENT AMONG ALL PARTICIPATING NATIONS.

>> THIS EVENING I CAN REPORT THAT WE HAVE SEIZED THIS OPPORTUNITY. BECAUSE OF THE STEPS WE'VE TAKEN AS INDIVIDUAL NATIONS AND AS AN INTERNATIONAL COMMUNITY, THE AMERICAN PEOPLE WILL BE SAFER AND THE WORLD WILL BE MORE SECURE. ALL THE NATIONS REPRESENTED HERE HAVE ENDORSED THE GOAL THAT I OUTLINED IN PRAGUE ONE YEAR AGO. TO SECURE ALL VULNERABLE NUCLEAR MATERIALS AROUND THE WORLD IN FOUR YEARS' TIME.

>> Brown: THE COMMUNIQUE MAKES EACH NATION RESPONSIBLE FOR SAFEGUARDING NUCLEAR MATERIALS AND PROPOSES A NUMBER OF WAYS FOR THE GLOBAL COMMUNITY TO WORK TOGETHER AGAINST THE SALE OR THEFT OF SUCH MATERIALS. WHILE ALSO RECOGNIZING THAT NATIONS CAN CONTINUE TO PURSUE PEACEFUL NUCLEAR ENERGY PROGRAMS. ASKED ABOUT IRAN AND SANCTIONS, THE PRESIDENT SAID HE BELIEVES THE CHINESE ARE, QUOTE, SERIOUS ABOUT SUPPORTING A TOUGHER APPROACH.

>> I THINK THAT , YOU KNOW, A LOT OF COUNTRIES AROUND THE WORLD HAVE TRADE RELATIONSHIPS WITH IRAN. AND WE'RE MINDFUL OF THAT. BUT WHAT I SAID TO PRESIDENT HU AND WHAT I'VE SAID TO EVERY WORLD LEADER THAT I TALK TO IS THAT WORDS HAVE TO MEAN SOMETHING. THERE HAVE TO BE SOME CONSEQUENCES .

>> Brown: THE PRESIDENT ALSO ANNOUNCED TODAY THAT A FOLLOW-UP NUCLEAR SUMMIT WOULD TAKE PLACE TWO YEARS FROM NOW IN SOUTH KOREA.

>> Lehrer: AND FOR MORE ON THE SUMMIT, WE GO TO ELLEN TAUSCHER, THE UNDERSECRETARY OF STATE FOR ARMS CONTROL AND INTERNATIONAL SECURITY. SHE JOINS US FROM THE WASHINGTON CONVENTION CENTER WHERE THE SUMMIT IS BEING HELD. MADAM SECRETARY, WELCOME.

>> THANK YOU, JIM. HOW ARE YOU?

>> Lehrer: JUST FINE. FIRST ON THE ISSUE OF IRAN, WHAT EXACTLY HAS THE UNITED STATES AND CHINA AGREED TO WHEN IT COMES TO THE NEXT MOVES ON IRAN AND ITS NUCLEAR PROGRAM?

>> WELL, JIM, I'M NOT GOING TO GO INTO THE DETAILS OF THAT BECAUSE THIS IS A VERY COMPREHENSIVE DISCUSSION AMONG MANY COUNTRIES, AS YOU KNOW. SECRETARY CLINTON MET WITH THE P-5 PLUS ONE WHICH IS GERMANY LAST NIGHT. SUFFICE IT TO SAY THAT THE UNITED STATES REACHED OUT ITS HAND. PRESIDENT OBAMA AS THE NEW PRESIDENT REACHED OUT HIS HAND TO THE IRANIANS FOR WHAT WE CALLED THE PERSUASIVE TRACK TO ENGAGE, TO TALK ABOUT HOW WE CAN MOVE FORWARD TO PREVENT AND PERSUADE IRAN NOT TO BUILD NUCLEAR WEAPONS. THAT HAS NOT WORKED. IT WAS NOT SATISFIED OUR CONCERNS, NOR DOES IT SATISFY THE CONCERNS OF THE REEJ OR OR MANY COUNTRIES. THE PRESSURE TRACK INCLUDES SANCTIONS. THAT IS AN ONGOING NEGOTIATION THAT THE PRESIDENT IS CONDUCTING WITH SECRETARY CLINTON.

>> Lehrer: BUT IT WOULD BE A MISTAKE TO SUGGEST THAT CHINA HAS AGREED TO GO ALONG WITH TOUGHER SANCTIONS. CORRECT?

>> WELL, I THINK WHAT'S SAFE TO SAY, JIM, IS THAT IT WAS A VERY BIG MOVE FOR PRESIDENT HU TO BE HERE. I UNDERSTAND THAT HE AND PRESIDENT OBAMA HAD A VERY LENGTHY MEETING . WE'LL HAVE TO SEE HOW THAT HAS TURNED OUT. BUT IT'S VERY CLEAR THAT MANY COUNTRIES ARE AS CONCERNED AS WE ARE ABOUT IRAN'S REKALS TRANSTO WORK ON THE PERSUASION TRACK AND BELIEVE THAT THEY NEED TO BE CONVINCED NOT TO BUILD NUCLEAR WEAPONS.

>> Lehrer: BACK TO THE MORE FORMAL PROCEEDINGS HERE, TODAY'S STATEMENT AND PRESIDENT OBAMA UNDERLINED IT TODAY IN HIS SPEECH AND THEN OF COURSE AGAIN TONIGHT IN THE NEWS CONFERENCE. WHAT DOES HE MEAN WHEN HE SAYS THESE COUNTRIES-- 48, 49 COUNTRIES-- HAVE AGREED TO SECURE, ESSENTIALLY TO LOCK DOWN THEIR NUCLEAR SUPPLIES? IN FOUR YEARS? WHAT DOES THAT MEAN?

>> WELL, THE PRESIDENT HAS A VERY COMPREHENSIVE STRATEGY, JIM, THAT HE OUTLINED ORIGINALLY A YEAR AGO IN PRAGUE. TODAY WE HAVE AGREEMENT FROM COUNTRIES LIKE CHILE AND CANADA AND MEXICO AND THE UKRAINE TO TAKE THE HIGHLY ENRICHED URANIUM THAT THERE IS IN THEIR REACTORS OR IN THE STORAGE AND MOVE IT EITHER TO THE UNITED STATES AND RUSSIA FOR DISPOSITION AND AS THE PRESIDENT SAID WE HAVE AN AGREEMENT TOY THAT SECRETARY CLINTON SIGNED WITH THE RUSSIANS TO ELIMINATE 34,000 METRIC TONS OF PLUTONIUM WHICH COULD HAVE MADE 17,000 WEAPONS. THIS IS AN EFFORT THE PRESIDENT HAS MADE VERY CLEAR TO THE 47 HEADS OF STATE THAT WHETHER YOU'RE A NUCLEAR POWER WITH NUCLEAR WEAPONS OR YOU HAVE CIVILIAN PEACEFUL NUCLEAR POWER IN YOUR COUNTRY IT'S EVERYONE'S RESPONSIBILITY TO MAKE SURE THAT NUCLEAR MATERIAL, KNOW HOW AND TECHNOLOGY DOES NOT GET IN THE HANDS OF TERRORISTS AND THAT NEW STATES DON'T ACQUIRE IT.

>> Lehrer: THIS MEANS TO PREVENT THE POSSIBILITY OF SOMEBODY STEALING IT, SELLING IT OR GIVING IT AWAY? I MEAN, DOES IT-- ALL OF THE ABOVE AND MORE?

>> IT'S ALL OF THE ABOVE AND MORE. AS YOU SAW WHEN THE PRESIDENT LAST WEEK RELEASED OUR NUCLEAR POSTURE REVIEW, HE'S WORKING VERY HARD TO REDUCE THE ROLES OF NUCLEAR WEAPONS FOR THE UNITED STATES BUT AT THE SAME TIME MAKE INVESTMENTS TO MAKE SURE THAT WE HAVE A STOCK PILE BUT IN THE END HE IS VERY CLEAR THAT NUCLEAR TERRORISM IS A SIGNIFICANT ISSUE AND A THREAT. THAT IS WHY HE BROUGHT THE 47 HEADS OF STATE HERE TO HAVE VERY COZY CONVERSATIONS WITH THEM AND TO SPEND A DAY-AND-A-HALF ON THIS ISSUE. THESE ARE ALL VERY BUSY PEOPLE AS IS THE PRESIDENT. HE BELIEVES THAT THIS IS A SINGULAR THREAT THAT NEEDS EVERYBODY TO WORK TOGETHER. AND THESE COMMIT MANYS THAT THESE COUNTRIES HAVE MADE ARE SIZABLE AND REALLY BEGINS TO REDUCE THE KINDS OF STOCK PILES AROUND THE WORLD THAT COULD EVENTUALLY IF NOT PROTECTED FALL INTO THE HANDS OF TERRORISTS AND OTHER BAD ELEMENTS.

>> Lehrer: WHAT ARE THE BEST, THE TOP THREATS , THE LOOSE NUKES SO TO SPEAK? WHERE DO THEY COME FROM? ARE THEY FROM THE OLD SOVIET UNION COUNTRIES OR FROM PAKISTAN? GIVE ME A LIST.

>> I THINK, JIM, YOU KNOW, WE'RE NOT GOING TO NAME NAMES BUT IT'S CLEAR THAT ... AFTER THE FALL OF THE SOVIET UNION, PAKISTAN AND THE OTHER COUNTRIES WORKED TOGETHER TO BRING THEIR MATERIAL UNDER CONTROL. BUT THERE ARE LOTS OF COUNTRIES THAT HAVE PEACEFUL USES AND REACTORS THAT NEED TO BE PROTECTED BETTER. THERE ARE COUNTRIES WITH RADIOACTIVE ISOTOPES AND OTHER THINGS THAT NEED TO BE PROTECTED BER. IT'S NOT JUST NUCLEAR WEAPONS OR FORMER NUCLEAR WEAPONS BUT THE REACTORS AND ANY KIND OF NUCLEAR MATERIAL AND THE KNOW HOW AND THE TECHNOLOGY THAT WHEN PUT TOGETHER COULD GIVE TERRORISTS OR OTHER BAD ACTORS THE OPPORTUNITY TO HARM INNOCENT PEOPLE.

>> Lehrer: THAT'S THE REASON THE PRESIDENT SAID TODAY THAT THE THREAT OF NUCLEAR ATTACK IS HIGHER NOW THAN IT WAS 20 YEARS AGO WHEN THE COLD WAR ENDED?

>> THAT'S RIGHT. THE PRESIDENT HAS SAID THIS CONSISTENTLY. I THINK IT'S PROVEN BY THE INTELLIGENCE ESTIMATES. WE HAVE ... MORE SAFETY LOOKING TO ACQUIRE NUCLEAR WEAPONS THAN WE DID 15 YEARS AGO. WE HAVE A LOT MORE NUCLEAR REACTORS OUT THERE. WHILE THEY DON'T HAVE HIGHLY ENRICHED URANIUM THAT COULD BE USED FOR BOMB MAKING MATERIAL THEY HAVE RADIOACTIVE MATERIAL THAT COULD BE USED FOR DIRTY BOMBS. IT'S IMPORTANT THAT WE UNDERSTAND THE CONTEXT OF THIS. IT'S A VERY BIG AGENDA. IT WAS WONDERFUL TO SEE THE 47 HEADS OF STATE HERE AND TO SEE THE PRESIDENT PRESENT SO CLEARLY WHAT HE BELIEVES IS AN OPPORTUNITY TO WORK TOGETHER. THESE AGREEMENTS I THINK ARE SIZABLE AND SIGNIFICANT AND WILL PROVE TO BE CREATING MORE SECURITY AND SAFETY.

>> Lehrer: IS IT CORRECT TO SAY THEN THAT THINGS WILL HAPPEN AS A RESULT OF WHAT HAPPENED HERE THESE TWO DAYS? IT WOULD NOT HAVE HAPPENED HAD THERE NOT BEEN THIS MEETING.

>> THAT'S ABSOLUTELY POSITIVELY TRUE. THE PRESIDENT HAS NOT ONLY COMMUNIQUE BUT A WORK AGREEMENT. EVERY COUNTRY HAS SIGNED ON TO IT. EVERY COUNTRY HAS A LIST OF TO DOS, SO TO SPEAK. THE PEOPLE THAT ORGANIZED THESE ARE CALLED SHIRPAS. THEY ARE EITHER THE FOREIGN MINISTER OR THE AMBASSADOR. THEY ARE GOING TO STAY IN TOUCH. THE NEW CONFERENCE FOR 2012 HAS BEEN ANNOUNCED IN SOUTH KOREA. THIS IS NOT A ONE-TIME EVENT WHERE WE HAVE ONE-TIME DELIVERABLES. THIS IS AN ONGOING THING WITH SIGNIFICANT AGREEMENTS BETWEEN HEADS OF STATE TO DELIVER BETWEEN NOW AND 2012 WHEN SOUTH KOREA WILL HOST THE NEXT NUCLEAR SECURITY SUMMIT.

>> Lehrer: WHAT ARE THE PROCEDURES FOR FINDING OUT WHETHER OR NOT THESE 47 COUNTRIES ACTUALLY DID WHAT THEY SAID THEY WOULD DO AT THIS... IN THIS COMMUNIQUE TODAY?

>> WELL, PART OF IT WAS THAT WE HAVE VERY STRONG BILATERAL RELATIONSHIPS AND MULTI-LATERAL RELATIONSHIPS. ONE OF THEM IS WITH THE I.A.E.A.. THE DIRECTOR GENERAL OF THE I.A.E.A. WAS HERE AND WAS A VERY BIG PARTICIPANT IN THIS. WE HAVE BOTH THE MULTILATERAL RELATIONSHIPS AND WE HAVE THESE COMMITMENTS THAT ARE VERY DIRECT AS DELIVERABLES, PLUS WE HAVE THE I.A.E.A. IN THE MIDDLE OF IT. THEY CERTAINLY WILL BE INVOLVED IN MONITORING WHAT THESE PROMISES ARE.

>> Lehrer: IS IT CORRECT TO SAY, MADAM SECRETARY, THAT THERE WAS VERY LITTLE HARD NEGOTIATING THAT WENT ON HERE, THAT MOST OF THESE, IF NOT ALL, OF THESE VARIOUS LEADERS CAME TO WASHINGTON ALONG WITH PRESIDENT OBAMA IN AGREEMENT? ALL THEY COME TO DO WAS TO SHAKE HANDS AND WORK OUT THE PAPERWORK AND ISSUE A COMMUNIQUE?

>> NO, I THINK THAT IS MISSING THE POINT. I THINK THE TRUTH IS, JIM, THAT WHILE WE HAD A PLENARY SESSION WITH ALL OF THESE HEADS OF STATE WORKING TOGETHER OVER A DAY-AND-A-HALF, THERE WERE MANY PULP ASIDES. THERE WERE LOTS OF CONVERSATIONS GOING ON BETWEEN THE FOREIGN MINISTERS AND THE PEOPLE ACCOMPANYING THE HEADS OF STATE AND THE HEADS OF STATE THEMSELVES ON A MYRIAD OF ISSUES. THIS WAS A UNIQUE OPPORTUNITY IN ONE BUILDING TO HAVE, IN WASHINGTON D.C., 47 HEADS OF STATE THAT HAVE MANY DIFFERENT ISSUES TO DEAL WITH THAT ARE REGIONAL. THERE ARE NEIGHBORS THEY WANT TO TALK TO OR EVEN PEOPLE ACROSS THE WORLD THEY NEEDED TO TALK TO ABOUT MANY DIFFERENT ISSUES. I WOULD SAY THERE WAS A LOT OF ACTIVITY FOR SECURITY SUMMIT ITSELF. CERTAINLY PRESIDENT OBAMA WAS IN THE CHAIR THE ENTIRE TIME. I THINK THAT THE SIDE ACTION ALSO WAS TREMENDOUSLY HELPFUL TO ADVANCE MANY OF THE CAUSES THAT WE IN THE UNITED STATES BELIEVE IN.

>> Lehrer: ON THE HUMAN LEVEL WHAT WAS THE ATMOSPHERE? WHAT WAS THE TONE LIKE AMONG ALL THESE FOLKS?

>> WELL, I WAS IN MANY OF THE MEETINGS WITH SECRETARY CLINTON. I WAS ABLE TO SEE THE INTERACTION. I THINK THAT WHAT'S CLEAR IS THAT THERE WAS OVERALL APPRECIATION FOR CALLING THIS MEETING. I THINK MANY OF THE HEADS OF STATE BELIEVE THAT THIS WAS AN ISSUE THAT WAS IMPORTANT BUT THAT UNTIL THE UNITED STATES AND PRESIDENT OBAMA PUT IT OUT THERE AS SOMETHING THAT THEY COULD DISCUSS AND GET RAMPED UP ON, THAT IT WAS ONE OF THOSE THINGS THAT WAS OFF TO THE SIDE. BUT I THINK THAT AS USUAL WHEN SOMEBODY LIKE PRESIDENT OBAMA BRINGS AN ISSUE FORWARD, THERE WAS A LOT OF EXCITEMENT AND A LOT OF APPRECIATION AND A LOT OF COMMITMENT. I THINK THAT THE MEETINGS THAT HE HAD HIMSELF WITH HEADS OF STATE ON THE SIDE AND THE MEETINGS OF SECRETARY CLINTON WILL PROVE TO BRING BENEFITS TO THE AMERICAN PEOPLE FOR A VERY LONG TIME.

>> Lehrer: SECRETARY TAUSCHER, THANK YOU VERY MUCH.

>> THANK YOU, JIM. THE BANKS AND THE HOUSING CRISIS. BUT FIRST WITH THE OTHER NEWS OF THE DAY, HERE IS KWAME HOLMAN IN OUR NEWS ROOM.

>> Holman: THE OUSTED PRESIDENT OF KYRGYZSTAN CAME UNDER NEW PRESSURE TODAY TO STEP DOWN. KURMANBEK BAKIYEV FLED THE CAPITAL, BISHKEK, LAST WEEK. HE FLED SOUTH, TO HIS HOME VILLAGE NEAR THE CITY OF JALAL- ABAD. TODAY HE ADDRESSED A RALLY OF 5,000 SUPPORTERS. LATER, HE LAID OUT HIS CONDITIONS FOR RESIGNING.

>> (TRANSLATED:) IN WHAT CASE WOULD I RESIGN? FIRST OF ALL, A GUARANTEE THAT IN KYRGYZSTAN THERE ARE NO MORE PEOPLE WALKING AROUND WITH WEAPONS, NO MORE SEIZURE OF PROPERTY OR REDISTRIBUTION OF PROPERTY. ALSO NATURALLY MY OWN SECURITY AND THE SECURITY OF THE MEMBERS OF MY FAMILY AND THOSE CLOSE TO ME.

>> Holman: THE INTERIM GOVERNMENT HAS BALKED AT GIVING ANY GUARANTEES TO RELATIVES OF BAKIYEV, ACCUSED OF CORRUPTION. AND THE INTERIM LEADER, ROZA OTUNBAYEVA, WARNED TODAY TIME IS RUNNING OUT FOR BAKIYEV TO LEAVE THE COUNTRY. SHE SAID PRESSURE IS MOUNTING TO THROW HIM INTO PRISON INSTEAD.

>> (TRANSLATED:) FROM THE VERY BEGINNING, FROM APRIL 7 WE HAVE STATED THAT WE GUARANTEE HIS SECURITY ACCORDING TO THE CONSTITUTION. BUT AFTER SEEING THE SCALE OF HIS CRIME, WE BELIEVE THAT HE WENT OUT OF THE LIMIT OF THE LAW. THE SOCIETY, THE PEOPLE DEMAND THAT WE TAKE HIM TO COURT AND CALL HIM TO ACCOUNT.

>> Holman: THE INTERIM LEADER ALSO SAID SHE WILL EXTEND THE LEASE ON A U.S. AIR BASE IN KYRGYZSTAN FOR A YEAR. THE BASE IS CRITICAL TO U.S. OPERATIONS IN AFGHANISTAN. THE BODY OF POLAND'S FIRST LADY, MARIA KACZYNSKA, WAS FLOWN BACK TO WARSAW TODAY. SHE AND HER HUSBAND, PRESIDENT LECH KACZYNSKI, WERE KILLED SATURDAY WHEN THEIR PLANE CRASHED IN WESTERN RUSSIA. THE FIRST LADY'S REMAINS ARRIVED ON A MILITARY PLANE IN A WOODEN CASKET DRAPED WITH THE POLISH FLAG. IT WAS MET BY HER ONLY DAUGHTER AND THE LATE PRESIDENT'S TWIN BROTHER. SEPARATELY, PARLIAMENT HELD A SPECIAL OBSERVANCE IN MEMORY OF THE 96 PEOPLE-- MANY OF THEM GOVERNMENT OFFICIALS-- KILLED IN THE CRASH. AND IN WASHINGTON, PRESIDENT OBAMA ASKED WORLD LEADERS AT THE NUCLEAR SUMMIT TO HOLD A MOMENT OF SILENCE FOR POLAND. MR. OBAMA WILL ATTEND THE STATE FUNERAL ON SUNDAY IN KRAKOW. IN PAKISTAN, DETAILS EMERGED OF A WEEKEND MILITARY AIR STRIKE THAT KILLED UP TO 71 CIVILIANS. THE ARMY INITIALLY DENIED ANY CIVILIAN DEATHS, BUT EYEWITNESSES AND A TOP LOCAL OFFICIAL CONFIRMED THEM. THE AIR STRIKES WERE CARRIED OUT EARLY SATURDAY IN THE KHYBER TRIBAL REGION, NEAR THE AFGHAN BORDER. PAKISTAN'S MILITARY RECENTLY HAS LAUNCHED OFFENSIVES IN THAT AREA AGAINST TALIBAN AND AL-QAEDA FIGHTERS. THE MAN WHO PRESIDED OVER THE LARGEST BANK FAILURE IN U.S. HISTORY DEFENDED THE INSTITUTION TODAY. FEDERAL REGULATORS SEIZED WASHINGTON MUTUAL, BASED IN SEATTLE, IN SEPTEMBER OF 2008. BUT TODAY, FORMER C.E.O. KERRY KILLINGER TOLD A SENATE HEARING THAT THE BANK-- COMMONLY KNOWN AS "WAH-MOO"-- NEVER GOT A CHANCE TO WORK THROUGH ITS TROUBLES.

>> CLEARLY, THERE WAS A LOT OF PRESSURE ON POLICYMAKERS. HOWEVER, I DON'T THINK THE COMPANY WAS TREATED WITH THE SAME EQUAL HAND IN AN EQUAL MANNER AS OTHER FINANCIAL INSTITUTIONS WERE.

>> Holman: KILLINGER DENIED KNOWING ABOUT EXTENSIVE FRAUD IN THE BANK'S HOME MORTGAGE LENDING. BUT TWO OTHER FORMER BANK OFFICERS TESTIFIED THEY WERE SQUELCHED WHEN THEY TRIED TO REIN IN RISKY LENDING. WALL STREET HAD A RELATIVELY QUIET DAY. THE DOW JONES INDUSTRIAL AVERAGE GAINED 13 POINTS TO CLOSE AT 11,019. THE NASDAQ ROSE 8 POINTS TO CLOSE AT 2466. NEBRASKA HAS APPROVED AN ENTIRELY NEW BASIS FOR CURBING ABORTIONS. STATE LAWMAKERS VOTED TODAY TO BAN ABORTIONS AT 20 WEEKS OF PREGNANCY, BASED ON CLAIMS THE FETUS CAN FEEL PAIN BY THEN. EXISTING LAWS BAR ABORTIONS ONCE THE FETUS IS ABLE TO SURVIVE OUTSIDE THE WOMB. THAT'S GENERALLY DEEMED TO OCCUR AT 22 TO 24 WEEKS. THE NEW LAW IS LIKELY TO BE CHALLENGED IN COURT. THE BOY SCOUTS OF AMERICA WERE FOUND NEGLIGENT TODAY IN A SEXUAL ABUSE CASE. A JURY IN PORTLAND, OREGON, ORDERED THEM TO PAY $1.4 MILLION TO A MAN WHO SAID A SCOUT LEADER MOLESTED HIM IN THE EARLY 1980s. PUNITIVE DAMAGES WILL BE FIXED LATER. THE TRIAL WAS MARKED BY THE USE OF THE BOY SCOUTS' SO-CALLED "PERVERSION FILES" ON ALLEGED PEDOPHILES. THOSE ARE SOME OF THE DAY'S MAIN STORIES. I'LL BE BACK AT THE END OF THE PROGRAM WITH A PREVIEW OF WHAT YOU'LL FIND TONIGHT ON THE NEWSHOUR'S WEB SITE. FOR NOW, BACK TO GWEN.

>> Ifill: WE CONTINUE OUR SPOTLIGHT SERIES HERE IN FLORIDA FOCUSING ON HEALTH CARE. NEWSHOUR HEALTH CORRESPONDENT BETTY ANNE BOWSER BEGINS BY INTRODUCING US TO FOUR INDIVIDUALS WHO HAVE BEEN WATCHING THE DEBATE CLOSELY.

>> Reporter: FLORIDA RANKS SECOND IN THE NATION IN THE NUMBER OF PEOPLE ON MEDICARE WITH JUST ABOUT THREE MILLION ENROLLEES. BUT AMERICANS OF ALL AGES ARE ETERNALLY DRAWN TO THE SUNSHINE STATE FOR ITS CASUAL WAY OF LIVING. OLDER AMERICANS MAY COME TO SUN CITY CENTER 25 MILES SOUTH OF TAMPA. LIFE'S EASY HERE. LIE BY THE POOL, TAKE IN A LEISURELY CAME OF BRIDGE OR KANASTA. DEAND JOHN WILLIAMS MOVED DOWN FOR THEIR GOLDER YEARS WHICH THEY NOW SEE THREATENED BY THE NEW HEALTH CARE LAW.

>> SOLVE THE PROBLEM THAT EXISTS BUT LEAVE THE REST OF US ALONE.

>> 37-YEAR-OLD ALER GIST DR. MONA VISHIN-MANGAT THINKS THE NEW LAW WILL SOLVE INSURANCE PROBLEMS FOR MILLIONS OF AMERICANS.

>> IT'S GOING TO MAKE HEALTH CARE AFFORDABLE. IT'S GOING TO MAKE IT SO THAT I THINK, YOU KNOW, UPWARDS OF 94% OF THE POPULATION WILL BE COVERED.

>> Reporter: JERRY PIERCE WORRIES THE NEW LAW WILL HARM HIS BUSINESS.

>> I THINK READING THE LAW, READING WHAT WAS SIGNED ON THAT BILL, I WOULD SAY WE'RE HEADED INTO A HUGE, HUGE BUREAUCRATIC PROBLEM.

>> Reporter: AND 58-YEAR-OLD RONNI DRIMMER HOPES THE NEW LAW WILL MAKE IT EASIER FOR HER TO FIND REASONABLY PRICED INSURANCE , EVEN WITH HER PRE-EXISTING CONDITION.

>> I HATE PAYING THIS BILL. IT'S WAY TOO MUCH MONEY. IT'S VERY STRESSFUL FOR ME.

>> Reporter: THESE ARE JUST A SAMPLING OF THE MILLIONS OF FLORIDIANS WHO HAVE VESTED INTEREST IN THE NEW HEALTH CARE REFORM LAW. AND A RANGE OF OPINIONS FROM HIGH HOPES TO PREDICTIONS OF DOOM. A TYPICAL MORNING AT THE WILLIAMS' HOUSEHOLD IN SUN CITY CENTER CAN BE DEFINED BY A WARM CUP OF COFFEE AND A MORNING NEWSPAPER. BY MID MORNING, 81-YEAR-OLD DEAND HER 80-YEAR-OLD DISABLED HUSBAND JOHN ARE USUALLY OUT AND ABOUT. MANY MORNINGS HEADING TO THE REC CENTER FOR A WORKOUT. JOHN SUFFERED A FALL A FEW YEARS AGO THAT LEFT HIM WITH A BRAIN INJURY AND LIMITED MOBILITY.

>> HE LEARNED EVERYTHING FROM SCRATCH. TALKING, EATING.

>> Reporter: SINCE THEN IT'S BEEN ONE MEDICAL CRISIS AFTER ANOTHER. THREE HEART BY-PASS SURGERIES AND A PACEMAKER, ALL PAID FOR BY MEDICARE AND THEIR SUPPLEMENTAL INSURANCE. AND EVEN THOUGH THERE IS NOTHING IN THE LAW THAT CALLS FOR ESTABLISHING PANELS THAT WILL DECIDE WHICH SENIORS GET HEALTH CARE AND WHICH ONES DON'T, DEE BELIEVES THAT WILL HAPPEN.

>> THEY TALK ABOUT IT ON TALK RADIO EVERYDAY THAT THERE WILL BE A COMMITTEE THAT WILL DECIDE FOR SOME OF US OLDER ONES THAT HAVE THESE HUGE HEALTH PROBLEMS THEY'RE GOING TO LOOK AT THE TABLES. IS HE OR SHE GOING TO LIVE LONG ENOUGH TO JUSTIFY THIS COST?

>> SUPPORT OR VOTE AGAINST A BILL THAT WE HAVE NEVER BEEN SHOWN.

>> Reporter: LAST YEAR DEE JOINED THE TEA PARTY MOVEMENT AND WENT TO WASHINGTON ALONG WITH THOUSANDS OF OTHERS. TO PROTEST HEALTH CARE OVERHAUL EFFORTS.

>> I BELIEVE THE WAY THEY DO IT. I WANT LESS GOVERNMENT. LESS SPENDING. LESS TAXES. I WANT MORE FREEDOM.

>> HELLO!

>> Reporter: SAY ST. PETERSBURG ALER GIST DR. MONA VISHIN-MANGAT COULDN'T FEEL MORE DIFFERENTLY. SHE'S A MEMBER OF DOCTORS FOR AMERICA, A GRASS ROOTS GROUP THAT LOBBIED FOR A SINGLE PAYOR SYSTEM DURING THE HEALTH CARE DEPARTMENT. ... DEBATE.

>> I'M EXTREMELY PLEASED WITH THE BILL. I THINK IT'S A VERY GOOD BILL. OBVIOUSLY IT COULD BE BETTER BUT I THINK IT'S A STEP IN THE RIGHT DIRECTION. IT GETS US A LOT CLOSER TO INSURING MORE AMERICANS. IT GETS US CLOSER TO HAVING, YOU KNOW, STOPPING INSURANCE COMPANIES FROM THESE MALICIOUS PRACTICES THAT I JUST THINK WERE VERY ARBITRARY.

>> THIS ONE STRICTLY IS FOR ... SO YOU CAN'T DO THAT FOR A CHILD.

>> Reporter: THREE YEARS AGO DR. VISHIN-MANGAT OPENED HER PRIVATE PRACTICE THINKING SHE'D HAVE QUALITY TIME WITH HER PATIENTS. BUT INSURANCE COMPANY MANDATES AND PAPERWORK ARE TAKING UP TOO MUCH OF HER TIME.

>> LET'S TAKE, FOR EXAMPLE, A NEW PATIENT THAT WILL COME TO MY OFFICE. THAT PATIENT WILL CALL AND SAY I HAVE AETNA. THAT SETS A WHOLE SERIES OF THINGS INTO MOTION. NOT ONLY DOES SHE HAVE TO FIND OUT IF THAT INSURANCE IS ACTIVE. SHE HAS TO FIND OUT IS THERE A PRE-EXISTING CLAUSE IN THAT INSURANCE? EACH PATIENT REQUIRES A PHONE CALL. YOU SIT ON HOLD FOR 30 OR 40 MINUTES AND TRY TO GET THE INFORMATION. I SEE THE PATIENT AND THEN I'M RESTRICTED IN HOW I TREAT THEM.

>> Reporter: SHE SAYS IT'S FRUSTRATING THAT SHE CAN'T AFFORD TO OFFER HEALTH INSURANCE TO HER THREE EMPLOYEES. ONE OF WHOM HAS A PRE-EXISTING CONDITION.

>> IT'S EXTREMELY FRUSTRATING. BASICALLY, YOU KNOW, I TRIED TO DO THAT. I TRIED TO GIVE IT TO THEM. THE OPTIONS WERE UNAFFORDABLE.

>> Reporter: 75 MILES AWAY IN ORLANDO, JERRY PIERCE THINKS IT'S GOVERNMENT PAPERWORK AND BUREAUCRACY THAT ARE GOING TO HARM HIS BUSINESS. THE RESTAURANT SUPPLY COMPANY HE OWNS HAS RECENTLY GROWN INTO A WORLDWIDE INTERNET COMPANY WITH 50,000 CUSTOMERS IN 100 COUNTRIES.

>> CURRENTLY HEALTH INSURANCE TAKES UP 10% OF HIS $1 MILLION A YEAR PAYROLL. BUT HE SAYS HE FACES A GROWING PROBLEM TRYING TO FIND AFFORDABLE COVERAGE. BECAUSE OF WHAT HE SEES AS THE LACK OF COMPETITION AMONG INSURANCE COMPANIES. FLORIDA IS ONE OF THOSE STATES THAT HAS A LIMITED NUMBER OF INSURERS IN THE MARKETPLACE.

>> IT'S VERY NON-COMPETITIVE WHEN YOU HAVE APPROXIMATELY FIVE INSURANCE COMPANIES THAT PROVIDE THE INSURANCE AS A MAJOR PART OF THE INSURANCE OF THE STATE OF FLORIDA. YOU HAVE ROUGHLY OVER 400,000 SMALL COMPANIES. THERE'S VERY LITTLE NEGOTIATING POWER THAT... THAT 400,000 SMALL BUSINESSES HAVE TO SHOP FOR INSURANCE AGAINST FIVE INSURANCE COMPANIES. IT JUST DOESN'T WORK.

>> Reporter: THE NEW LAW DOES PROVIDE TAX CREDITS TO SMALL BUSINESSES WITH LESS THAN 50 EMPLOYEES. BUT PIERCE DOESN'T THINK THAT WILL OUTWEIGH WHAT HE SEES AS THE DOWNSIDE OF THE LAW.

>> THE AMOUNT OF BUREAUCRACY IN THE FIRST FEW PARAGRAPHS THAT I'VE READ OF THIS NEW BILL HAS JUST BEEN SIGNED INTO LAW IS OFF THE CHARTS. I ENCOURAGE EVERYBODY TO READ IT BECAUSE IT'S UNBELIEVABLE THE AMOUNT OF BUREAUCRACY AND CHECKING AND RULES AND REGULATIONS FOR EVERY LEVEL OF OUR SOCIETY.

>> RONNI DRIMMER SPENDS MORE THAN $700 A MONTH ON HEALTH INSURANCE. IN 2007 SHE WAS DIAGNOSED WITH AN AUTO IMMUNE CONDITION CALLED CRONE'S DISEASE. IN MOST STATES THAT WOULD HAVE MADE HER UNINSUREABLE BUT THE STATE OF FLORIDA REQUIRES INSURANCE COMPANIES TO OFFER COVERAGE TO SELF-EMPLOYED RESIDENTS EVEN WITH PRE-EXISTING CONDITIONS. SO SHE HAS INSURANCE. HOWEVER, SHE BELIEVES THE INSURANCE COMPANIES TRIED TO PRICE HER OUT OF THE MARKET.

>> EVERY YEAR IT GOES UP . I'D SAY ON AVERAGE 20% OR MORE. I MEAN I GET LESS AND LESS, YOU KNOW, CHOICES . I CAN'T JUST SWITCH TO ANOTHER INSURANCE COMPANY. I CAN'T GET INSURANCE AS AN INDIVIDUAL AT ALL. YOU KNOW, PRE-EXISTING CONDITIONS. FORGET ABOUT IT. THERE IS NO INSURANCE FOR ME.

>> AFTER SEVERAL OF DRIMMER'S BUSINESS VENTURES FAILED SHE BEGAN TO EARN MONEY BY CARING FOR SENIORS WHICH PROVIDES AN INCOME AROUND $30,000 A YEAR. SHE WORRIES ALL THE TIME ABOUT WHAT'S GOING TO HAPPEN TO HER HEALTH CARE IF SOMETHING GOES WRONG.

>> IT'S VERY UPSETTING. YOU KNOW, WHAT AM I GOING TO DO? I HAVE TO DEAL WITH IT. I DON'T KNOW. IT DOES. IT STRESSES ME OUT A LOT.

>> DRIMMER SAYS SHE ACTUALLY VOTED FOR PRESIDENT OBAMA SOLELY ON HIS PLAN TO REFORM HEALTH CARE. SHE WANTED THE BILL TO GO FURTHER.

>> YOU KNOW, I'M NOT A GENIUS, BUT I DON'T SEE WHERE THE COMPETITION IS GOING TO BE. TO, YOU KNOW, TO CONTROL THE COST. YOU KNOW, I THOUGHT THE PUBLIC OPTION MADE SENSE. I WAS ALL FOR THE PUBLIC OPTION. I WOULD HAVE LIKED TO HAVE SEEN SOMETHING BETTER SET UP FOR PEOPLE LIKE ME. SOONER. SOONER THAN 2014. I DON'T FEEL SECURE ABOUT THE WHOLE BILL.

>> Reporter: SO LIKE A LOT OF AMERICANS THESE FOUR FLORIDIANS ARE WAITING AND WONDERING WHAT WILL HAPPEN IN 2014 WHEN THE MAJOR PORTIONS OF THE BILL WILL KICK IN.

>> Ifill: FOR

>> Ifill: FOR MORE FROM THE FOUR PEOPLE BETTY ANNE TALKED TO, I'M JOINED BY RONNI DRIMMER, THE SELF-EMPLOYED CARE WORKER WHO IS CONSIDERING DROPPING HER COVERAGE ALTOGETHER. JERRY PIERCE, THE ORLANDO BUSINESSMAN WHO DOWNLOADED THE LAW INTO HIS KINDLE TO READ IT FOR HIMSELF. DR. MONA VISHIN MANGAT, THE ALLERGIST WHO TRAVELED TO WASHINGTON TO LOBBY FOR THE HEALTH CARE BILL. AND DEE WILLIAMS, THE SUN CITY RETIREE WHO TRAVELED TO WASHINGTON TO LOBBY AGAINST IT.- E WILL... RONNI DRIMMER, YOU TOLD BETTY ANNE YOU WANTED THE PUBLIC OPTION. YOU DIDN'T REALLY THINK THAT THIS BILL HAD GONE FAR ENOUGH. NOW THAT IT'S LAW WHAT ARE YOU THINKING? HOW IS IT AFFECTING YOU?

>> THE EXCHANGE THEY'RE GOING TO HAVE. THAT MIGHT AFFECT ME SOONER THAN LATER. THEN I CAN POSSIBLY GET DIFFERENT INSURANCE AS AN INDIVIDUAL INSTEAD OF AS A GROUP WHICH IS WHAT I DO NOW BECAUSE I'M SELF-EMPLOYED.

>> Ifill: YOU HAVE A PRE-EXISTING CONDITION SO IT MIGHT AFFECT YOU IN THAT WAY.

>> THAT'S A VERY BIG THING TO ME PERSONALLY BECAUSE I DO HAVE A PRE-EXISTING CONDITION. I NEED MEDICATION TO KEEP IT IN CHECK ALL THE TIME. SO GOING INTO THE FUTURE, IT GIVES ME SOME RELIEF BECAUSE I KNOW DOWN THE ROAD I DON'T HAVE TO WORRY ABOUT IT ANYMORE.

>> Ifill: DEE WILLIAMS YOU THINK THIS WHOLE THING WENT TOO FAR. HOW DO YOU THINK NOW THAT IT'S LAW?

>> I THINK THERE MIGHT BE SOME GOOD THINGS IN THE BILL THAT THEY SHOULD WORK ON. BUT I THINK A LOT OF IT SHOULD BE REPEALED. I'M NOT AGAINST HEALTH CARE REFORM. I'M AGAINST HEALTH INSURANCE REFORM WHICH I THINK THAT'S WHAT A LOT OF THIS WAS. I DON'T THINK THE BILL WOULD IN ITS ENTIRE TEE EVER GET REPEALED. I THINK YOU SHOULD TAKE THE GOOD PARTS AND WORK ON THAT. AND GET RID OF THE GARBAGE.

>> Ifill: WHAT'S THE GARBAGE?

>> I FELT LIKE THEY SHOULD HAVE SOLVED THE PROBLEM THAT EXISTED AND LEFT THE PEOPLE THAT WERE INSURED ALONE.

>> Ifill: DR. VISHIN-MANGAT, YOU NOT ONLY TAKE CARE OF PATIENTS BUT YOU ALSO HAVE THREE EMPLOYEES WHO ARE NOT COVERED. HOW WOULD THIS BILL CHANGE YOUR LIFE?

>> WELL THIS IS OBVIOUSLY GOING TO GIVE ME A LOT MORE OPTIONS. IN 2010 I'LL GET TAX CREDITS IF I AM ABLE TO PURCHASE INSURANCE FOR MY EMPLOYEES. I DO HAVE AN EMPLOYEE WITH A PRE-EXISTING CONDITION SO POTENTIALLY THIS IS REALLY GOING TO HELP US. GIVE US MORE AFFORDABLE OPTIONS FOR HER. SPEAKING TOWARDS THE MEDICARE ADVANTAGE CONCERN, I JUST WANTED TO MENTION THAT, YOU KNOW, I THINK THAT ADDRESSING THE MEDICARE ISSUE IS SOMETHING THAT WAS IMPORTANT BECAUSE THE SOLVENCY OF MEDICARE WAS ONLY PROJECTED TO BE SOLVENT FOR ANOTHER FIVE TO SEVEN YEARS. I THINK ADDRESSING IT AT THIS TIME IN THIS BILL WAS A SMART THING TO DO. I THINK THAT SECURING MEDICARE BENEFITS FOR ALL SENIORS AND FOR THOSE OF US THAT WILL EVENTUALLY BE SENIORS IS A VERY GOOD THING.

>> Ifill: WHAT ABOUT PEOPLE LIKE DEE WILLIAMS WHO SAID WE WERE FINE WITH OUR INSURANCE. ALL THIS IS GOING TO DO IS HURT MOST OF US?

>> I THINK IT'S A POTENTIAL FEAR THAT MANY PEOPLE HAVE THAT IT MIGHT... THAT THAT MIGHT OCCUR. BUT I DON'T THINK THAT IN THIS BILL THAT'S GOING TO HAPPEN. THE MEDICARE BENEFITS THAT ARE GUARANTEED ARE GUARANTEED. THOSE ARE NOT GOING TO CHANGE. SO I THINK IT'S SORT OF EVENS THE PLAYING FIELD SO THAT MEDICARE WILL LAST LONGER FOR ALL OF US AND BE THERE FOR ALL OF US.

>> JERRY PIERCE, YOU RUN A SMALL BUSINESS. OBVIOUSLY MANY PARTS THF BILL ARE GEARED TO PEOPLE LIKE YOURSELF. DO YOU THINK IT'S HELPING OR HURT SOMETHING.

>> I THINK IT WILL HURT. THERE ARE GOOD PARTS OF THE BILL CONCERNING PRE-EXISTING CONDITIONS, ET CETERA. BUT I THINK WHAT IT DOES, IT PUTS A HUGE SOCIAL COST ON TOP OF RUNNING A BUSINESS. WHERE THERE ARE TAXES, FOR INSTANCE,s A FEE TO INSURANCE COMPANIES OF $8 BILLION THIS YEAR. THERE'S GOING TO BE TAXES ON TOP OF PRESCRIPTION DRUGS, ET CETERA. YOU START ADDING ALL THOSE THINGS TOGETHER, THEY'RE ALL GOING TO GET PASSED ON TO SMALL BUSINESSES AND INDIVIDUALS. IF YOU ADD 25 CENTS TO A GALLON OF GASOLINE, WE DON'T EXPECT THE PRICE OF GASOLINE TO GO DOWN. WHY WOULD WE EXPECT HEALTH INSURANCE TO GO DOWN? WE TAX EVERYTHING THAT IS ASSOCIATED WITH IT AND ADD IT ON TO WHAT WE HAVE. THE NUMBER ONE PROBLEM AS I UNDERSTAND IT FOR YEARS IN SMALL BUSINESS IS THAT IF THE QUALITY... THE QUALITY HEALTH CARE HAS BEEN EXCELLENT IN THIS COUNTRY. THE PROBLEM HAS BEEN THE COST. SO WE ADD TAXES TO IT. HOW DOES THE COST GO DOWN? I DON'T SEE THAT IT DOES.

>> Ifill: WHAT DO YOU THINK ABOUT THAT RONNI DRIMMER? HE'S TALKING ABOUT THE COST ISSUE.

>> WELL, I'M PAYING CLOSE TO $1,000 FOR ONE PERSON RIGHT NOW. I'M GETTING LESS AND LESS COVERAGE EVERY YEAR. I ONLY HAVE A 60-40 POLICY AT THIS POINT. I JUST FEEL LIKE WE'RE ULTIMATELY PAYING FOR IT ANYWAY BECAUSE PEOPLE GOING TO THE EMERGENCY ROOM FOR THEIR CARE. SO WE'RE ALREADY PAYING FOR IT. IN ONE WAY OR ANOTHER.

>> WHAT IS GOVERNMENT'S ROLE SUPPOSED TO BE IN SOMETHING LIKE THIS SOME.

>> IT'S TO HELP THE PEOPLE AND TO TAKE CARE OF ITS CITIZENS AND MAKE THEM FEEL SECURE AND SAFE. IT DOESN'T MAKE ME FEEL SAFE NOT TO HAVE HEALTH INSURANCE.

>> HAVE YOU TALKED TO YOUR HEALTH CARE PROVIDER, DEE, ABOUT WHAT THIS WOULD DO? I KNOW YOU HAVE MAYBE IN LINE AT SOME POINT FOR A PACEMAKER. IS THAT SOMETHING THAT YOU THINK THIS WOULD AFFECT?

>> CERTAINLY. CERTAINLY.

>> MY HUSBAND AS A PACEMAKER. HE WAS TOLD LAST YEAR WHEN HE GOT IT THAT IF OBAMA CARE PASSES, THIS WOULD HAVE TO GO TO A COMMITTEE . WITH ALL YOUR OTHER EXISTING HEALTH PROBLEMS THEY WILL DECIDE WHETHER THIS PACEMAKER WILL BE COST EFFECTIVE. I CAN ALMOST GUARANTEE YOU YOU WOULDN'T GET IT.

>> Ifill: THIS IS THE DEATH PANEL.

>> WELL, THEY CALL IT A DEATH PANEL. WHATEVER YOU WANT TO. BUT A COMMITTEE.

>> Ifill: A COMMITTEE THAT WOULD DENY YOU COVERAGE IS YOUR CONCERN.

>> I GET VERY FRUSTRATED WHEN I HEAR THAT BECAUSE IT IS NOT FALSE. I MEAN THAT IS FALSE. THAT IS NOT TRUE. THAT IS NOT WHAT'S GOING TO HAPPEN. THAT'S NOT ANYWHERE IN THIS BILL. I THINK THESE THINGS... THESE TERMS DEATH PANEL ALL THAT CAME OUT OF US TALKING ABOUT END OF LIFE CARE AND US TALKING ABOUT COMPARATIVE EFFECTIVENESS RESEARCH AND WAYS THAT WE COULD HAVE A CENTRALIZE PLACE THAT WE HAVE RESEARCH ON WHAT WORKS AND DOESN'T WORK AND WE CAN ACCESS THAT RESEARCH. NOT THAT ANY OF THAT IS GOING TO SAY THAT MEDICARE YOU CAN'T GET IT BECAUSE IT'S NOT THE RIGHT TREATMENT BUT DOCTORS NEED TO HAVE ACCESS TO THE RIGHT INFORMATION. AND THERE'S NOT... I DON'T THINK THERE'S ANYTHING WRONG WITH PEOPLE TALKING TO THEIR PATIENTS' WHAT IS GOING TO HAPPEN AT THE END OF LIFE BECAUSE WE KNOW WE SPEND A LOT OF MONEY AT THE END OF LIFE IN THOSE LAST TWO OR THREE MONTHS. IT'S A LOT OF TIMES BECAUSE WE HAVEN'T HAD THAT DISCUSSION ABOUT WHAT IT IS WE REALLY WANT AND NEED.

>> Ifill: IT IS A TRADE-OFF ABOUT WHAT YOU GET AND WHAT YOU DON'T GET. THAT'S WHAT THIS DEBATE BOILS DOWN TO. FOR YOU, JERRY PIERCE, YOU HAVE 35 EMPLOYEES, A MILLION DOLLAR PAYROLL, DO YOUR EMPLOYEES COME TO YOU SAY ... TO YOU AND SAY NOW WHAT?

>> NOT QUITE YET. I DON'T THINK THEY'VE SEEN THE IMPACT OF IT. I ANTICIPATE WITH THE VARIOUS FEES AND TAXES ADDED ON IN THE NEXT FEW MONTHS THAT WE WILL BE SEEING AN INCREASE IN THEIR PREMIUMS AND INSURANCE COSTS PART OF WHICH WE PAY ABOUT 60% AND THEY PAY. WHEN THAT BEGINS TO KICK IN THEN WE'LL SEE MORE OF A REACTION. RIGHT NOW DAY TO DAY WE WAKE UP TOMORROW MORNING NOTHING CHANGES. BUT OVER A PERIOD OF TIME IT'S GOING TO START HAPPENING.

>> Ifill: RONNI DRIMMER, IN THE DEBATE-- AND THERE ARE DIFFERENT UNDERSTANDINGS ABOUT WHAT'S IN THIS LAW AND NOT WHAT'S NOT IN THIS LAW. HOW MUCH OF IT DO YOU THINK IS POLITICS AND HOW MUCH OF IT DO YOU THINK IS SUBSTANCE OR UNDERSTANDING OR APPRECIATION FOR WHAT IS OUT THERE?

>> I THINK THERE'S A LOT OF MISUNDERSTANDING THAT'S GONE ON. I THINK THAT LIKE THEY SAY THE POLLS THEY TAKE THE POLLS AND PEOPLE DON'T WANT HEALTH CARE CHANGE... CHANGE TO THEIR HEALTH CARE INSURANCE. I DON'T THINK THAT'S TRUE. I THINK THAT PEOPLE DON'T UNDERSTAND THE BILL AND HAVEN'T, YOU KNOW, PRE-SEARCHED IT ENOUGH THE PEOPLE THAT I TALKED TO HAVEN'T. THERE'S SO MUCH MISUNDERSTANDING ABOUT THE BILL.

>> Ifill: IS THIS POLITICS OR HAVEN'T THEY DONE A GOOD ENOUGH JOB OF FIXING THIS PROBLEM, DEE?

>> I THINK IN SOME RESPECTS IT WENT TOO FAR. LIKE I SAID BEFORE THEY SHOULD HAVE FIXED THE PROBLEM OUT THERE THAT NEEDED TO BE FIXED AND LEFT THE REST OF US WHO WERE INSURED AND HAPPY WITH IT, LEFT US ALONE. BUT TAKING CARE OF THE PROBLEM THAT THE PEOPLE WHO WERE NOT INSURED.

>> Ifill: LET ME ASK JERRY PIERCE ABOUT THAT. I FEEL VERY STRONGLY THAT THERE'S POLITICS INVOLVED IN IT. I'VE TESTIFIED BEFORE THE HOUSE SUB COMMITTEE IN 2005 ON SMALL BUSINESS ISSUES BEING HEALTH CARE. THE ISSUES OF HEALTH CARE PLANS CAME UP SEVERAL TILES BY EVERYBODY ON THAT PANEL. IT WAS AGREED THAT WAS THE NUMBER ONE ISSUE. IT IS NOT ADDRESSED IN HERE. AND ALSO THE ISSUE OF TORT REFORM IS NOT ADDRESSED IN MANY MEANINGFUL BAY. AND WE ALSO HAVE TO LOOK AT HOW THE BILL WAS WRITTEN. 2700 PAGES. WHO WROTE THOSE 2700 PAGES. THERE WERE LOBBYISTS THAT WROTE THEM. VESTED INTERESTS WROTE THEM. AND THE SMALL BUSINESS COMMUNITY WAS LEFT OUT OF THOSE DISCUSSIONS.

>> Ifill: DOCTOR?

>> I WOULD HAVE TO DISAGREE ON A LOT OF THOSE POINTS. THIS BILL IS A VERY GOOD FIRST STEP. IT REAL HE'LL SETS UP A FRAMEWORK FOR US TO HAVE INNOVATION IN WAYS THAT WE DELIVER CARE AND WE PAY FOR CARE IN AMERICA. THAT'S WHAT'S EVENTUALLY GOING TO HELP TO CONTROL COSTS SO I THINK THAT THIS IS A VERY GOOD FIRST STEP AND I'M VERY EXCITED TO KEEP WORKING ON IT BECAUSE THE WORK HAS ONLY JUST BEGUN.

>> Ifill: SO MANY PEOPLE STILL FEEL AS IF IT HASN'T SPOKEN TO THEIR PROBLEMS.

>> I THINK AS WE START IMPLEMENTING IT AND PEOPLE START SEEING THAT $250 CHECK FOR CLOSING THE DONUT HOLE, THEY START GETTING THAT SMALL BUSINESS TAX CREDIT, THEY START SEEING THAT THEY'RE, YOU KNOW, THEY CAN'T BE DENIED BECAUSE OF A PRE-EXISTING CONDITION, THEY SEE THAT THEIR 27-YEAR-OLD CHILD CAN STILL BE ON THEIR HEALTH INSURANCE PLAN, THESE THINGS ARE GOING TO MAKE THE PEOPLE SEE THAT THIS BILL IS GOOD. THERE IS A LOT OF GOOD THAT WILL COME FROM IT.

>> Ifill: THANK YOU VERY MUCH, ALL OF YOU, FOR SHARING YOURG THOUGHTS AND YOUR EXPERIENCES WITH US.

>> THANK YOU.

>> Lehrer: FINALLY TONIGHT , A FOLLOW-UP REPORT ON THE HOME FORECLOSURE CRUNCH AND WHY RELIEF ISN'T COMING MORE QUICKLY. RAY SUAREZ HAS THE STORY.

>> THIS IS A FUNDAMENTAL PROBLEM THAT WE'VE GOT.

>> WITH MORE THAN 3 MILLION HOMEOWNERS FACING FORECLOSURES THIS YEAR EXECUTIVES OF LEADING BANKS WERE CALLED BEFORE THE HOUSE FINANCIAL SERVICES COMMITTEE TODAY. THE BANKERS INSISTED THEY'RE WORKING TO HELP MORE PEOPLE BUT THEY WORRIED ALOUD ABOUT THE OBAMA ADMINISTRATION'S PUSH TO HAVE BANKS REDUCE THE PRINCIPAL ON SOME MORTGAGES, TO BRING THEM IN LINE WITH WHAT THE HOUSES ARE NOW WORTH.

>> OUR FIRST CONCERN IS THAT SUCH PROGRAMS COULD BE HARMFUL TO CONSUMERS, INVESTORS, AND FUTURE MORTGAGE MARKET CONDITIONS. AND SHOULD NOT BE UNDERTAKEN WITHOUT FIRST ATTEMPTING OTHER SOLUTIONS INCLUDING MORE TARGETED MODIFICATION EFFORTS.

>> THE PRINCIPAL NEEDS TO BE USED IN A VERY CAREFUL AND FOCUSED MANNER. THROUGH EXPERIENCE WE HAVE FOUND THAT IT'S BEST USED FOR CUSTOMERS IN AREAS WITH SEVERE PRICE DECLINES, WHERE THERE'S LITTLE PROSPECT FOR FULL RECOVERY OF HOME VALUES.

>> Reporter: BANK OFFICIALS TOLD THE COMMITTEE THEY WERE WORRIED. CUTS IN PRINCIPAL COULD COST THEM HUNDREDS OF BILLIONS OF DOLLARS. EXECUTIVES FROM FOUR LEADING BANKS TESTIFIED INCLUDING BANK OF AMERICA. FOR THE RECORD BANK OF AMERICA IS A NEWSHOUR UNDERWRITER. DEMOCRAT OF PENNSYLVANIA WARNED THERE'S GROWING FRUSTRATION THAT BANKS AREN'T DOING ENOUGH.

>> IT DOESN'T SEEM THAT THE NUMBERS ARE VERY HIGH WITH WHAT'S BEING DONE AS OF THIS PRESENT TIME. THERE ARE A HELL OF A LOT MORE POTENTIAL FORECLOSURES OUT THERE THAT MAY BE CAUSED OR MAY COME ABOUT BECAUSE WE QUITE HAVEN'T ARRANGED THINGS.

>> Reporter: SOME OF THE PLACES WHERE FORECLOSURES ARE HIGHEST ARE MARKETS THAT ONCE SOARED. INCLUDING CAPE CORAL IN SOUTHERN FLORIDA. LAST NIGHT ECONOMICS CORRESPONDENT PAUL SOLMAN SHOWED THE IMPACT THERE. HE VISITED JASON WELSH, A GOLF PRO WHO BOUGHT THIS HOUSE A DECADE AGO FOR ROUGHLY $100,000. HE RENOVATED IT, ADDED A POOL, HIKING HIS MORTGAGE TO $240,000.

>> THIS WAS QUITE AN UNDERTAKING. WE HAD TO PUT IN A RETAINING WALL.

>> TODAY GIVEN THE DECLINE IN PRICES IN THAT NEIGHBORHOOD, THE HOUSE WOULD SELL FOR POSSIBLY $100,000. WELSH HASN'T MADE A PAYMENT IN SIX MONTHS. WHILE HE'S ASKED THE BANK SERVICING THE LOAN TO LOWER IT. HE MADE THE BANK AN OFFER OF $150,000 SAYING HE WOULD REBUY THE HOUSE FOR MORE THAN IT'S WORTH. BUT THE BANK REFUSED AND WELSH FACES FORECLOSURE OR A SHORT SALE. THE BANK PLANS TO SELL THE HOUSE FOR FAR LESS THAN WHAT WELSH IS OFFERING.

>> I CALL AND TRY AND GET HELP. THEY JUST SAY I DON'T QUALIFY. AND THEY'RE WILLING TO SELL IT TO SOMEBODY ELSE FOR $100,000 OUT FROM UNDERNEATH ME. JUST UPSETTING. THERE'S SUPPOSED TO BE HELP OUT THERE AND THERE IS NONE.

>> Suarez: BILL IS A BANKER IN FORT MYERS. HIS BANK WAS NOT INVOLVED WITH WELSH'S CASE. HE SAID SOME BORROWERS ARE MORE DESERVING OF HELP THAN OTHERS.

>> I HAVE SYMPATHY FOR PEOPLE WHO WALK AWAY BECAUSE THEY'VE LOST THEIR JOB. THEY'VE HAD A MEDICAL CATASTROPHE. I HAVE NO SYMPATHY FOR SOMEBODY WHO WHO SIMPLY ELECTS TO WALK AWAY BECAUSE THE VALUE OF THEIR HOME IS NOW LESS THAN THEIR MORTGAGE.

>> SO FAR ONLY 170,000 HOMEOWNERS HAVE RECEIVED A PERMANENT MODIFICATION THROUGH A COMBINATION OF GOVERNMENT AND BANK PROGRAMS.

>> Suarez: FOR MORE ON THE QUESTION OF HOMEOWNER RELIEF, WE GET TWO VIEWS ABOUT WHY IT'S NOT HAPPENING FASTER. BERT ELY IS A BANKING INDUSTRY CONSULTANT WHO RUNS HIS OWN FIRM IN NORTHERN VIRGINIA. AND JULIA GORDON IS SENIOR POLICY COUNSEL AT THE CONSUMER ADVOCACY GROUP, THE CENTER FOR RESPONSIBLE LENDING. JULIA GORDON, LET'S START WITH YOU. WHY WAS IT SO HARD FOR PEOPLE WHOSE HOMES ARE UNDERWATER TO GET THE BANKS TO AGREE TO A LOWER PRINCIPAL BALANCE?

>> IT'S HARD BECAUSE IT'S HARD FOR THEM TO GET ANY MODIFICATION AT ALL TO BEGIN WITH. WHETHER YOU'RE UNDERWATER OR NOT DEALING WITH MORTGAGE SERVICES IS EXCEEDINGLY DIFFICULT AND MANY BORROWERS ARE STRUGGLING WITH THAT. BUT IT'S PARTICULARLY DIFFICULT BECAUSE THE PRIMARY GOVERNMENT PROGRAM TARGETING THIS ISSUE RIGHT NOW, THE HOME AFFORDABLE MODIFICATION PROGRAM, DOES NOT RIGHT NOW INCLUDE A PRINCIPAL REDUCTION COMPONENT. THE MORTGAGE SERVICES ARE ONLY DOING WHAT THEY'RE ESSENTIALLY REQUIRED TO DO. THEY'RE NOT REALLY GOING ABOVE AND BEYOND PARTICULARLY IN A SITUATION WHERE NOT ONLY DOES THIS COST THE OWNER OF THE LOAN MONEY IN MANY CASES BUT IN MOST CASES IT COSTS THE SERVICERS SOME OF THEIR OWN FEES.

>> Suarez: BERT, THIS HOUSING CRISIS HAS BEEN GOING ON FOR SOME TIME. ONE OF THE MOST CONSISTENT COMPLAINTS IS FROM HOMEOWNERS WHO ARE TRYING TO GET SOME RELIEF AND HAVEN'T BEEN ABLE TO.

>> WELL, I THINK THERE ARE TWO SIDES TO THIS STORY. JULIA TALKED ABOUT THE PROBLEM FROM THE SERVICERS' SIDE BUT ALSO SERVICERS ARE HAVING A LOT OF PROBLEMS IN MANY CASES WORKING WITH HOMEOWNERS. THEY HAVE A HARD TIME GETTING THEM ON THE PHONE, BEING ABLE TO WORK WITH THEM OR TO GET THE NECESSARY DOCUMENTATION THAT IS NEEDED FOR A MODIFICATION. THE OTHER THING THAT IS IS IMPORTANT TO KEEP IN MIND IS THAT MANY HOMEOWNERS HAVE DEBT PROBLEMS BEYOND JUST THEIR MORTGAGE. THEY MAY HAVE A CREDIT CARD LOAN, A CAR LOAN, A SECOND MORTGAGE ON THE PROPERTY. AND IN MY OPINION IT IS NOT POSSIBLE TO DO A MORTGAGE MODIFICATION IN ISOLATION. YOU HAVE TO LOOK AT THE HOMEOWNERS' TOTAL SITUATION WHICH OFTEN TIMES CAN BE COMPLICATED IF THERE HAS BEEN A JOB LOSS. FOR INSTANCE, IF YOU HAVE TWO WAGE EARNERS IN THE FAMILY, ONE OF THEM LOSES THEIR JOB, THAT LOSS OF INCOME CAN MAKE THE DIFFERENCE BETWEEN BEING ABLE TO SERVICE THEIR DEBTS AND NOT.

>> Suarez: LAST NIGHT ON THE NEWSHOUR WE SAW THE STORY OF AN EMPLOYED INDIVIDUAL WHO WAS LOOKING ON AS THE BANK WAS GETTING PREPARED TO TAKE LESS MONEY THAN HE WAS WILLING TO PAY FOR THE HOUSE AND MOVE IT TOWARD FORECLOSURE. WHY DOES THAT HAPPEN?

>> WELL, WE DON'T KNOW WHAT ALL THE SPECIFICS ARE OF THAT STORY SO I'M RELUCTANT....

>> Suarez: IT'S NOT A UNIQUE CASE.

>> NO, IT'S NOT A UNIQUE CASE BUT WE DO HAVE A NUMBER OF SITUATIONS WHERE PEOPLE ARE WHAT IS CALLED UNDERWATER ON THEIR LOAN WHERE THEY OWE MORE. BUT I THINK THERE ARE MANY FOLKS THAT HAVE REAL CONCERNS ABOUT THESE PRINCIPAL REDUCTIONS WHICH EFFECTIVELY IS WHAT THIS WOULD BE, THAT IT'S UNFAIR TO THOSE FOLKS WHO, IN FACT, HAVE MADE THEIR MORTGAGE PAYMENTS FOR WHATEVER REASON THEY'VE BEEN ABLE TO STAY CURRENT. THEY MAY BE UNDER WATER BUT THEY'RE CURRENT ON THEIR MORTGAGE, ARE NOT FACING THE SITUATION. THERE'S A POLITICAL ANGLE TO THIS TOO. IF THE GOVERNMENT GOES QUITE FAR IN TERMS OF TRYING TO HELP PEOPLE THROUGH PRINCIPAL REDUCTION THAT THAT WILL CREATE A POLITICAL BACK LASH AMONG THOSE HOMEOWNERS WHO FOR WHATEVER REASON AND MAYBE IT'S LUCK AS MUCH AS ANYTHING ELSE HAVE BEEN ABLE TO STAY CURRENT ON THEIR MORTGAGE AND ARE STICKING WITH THEIR HOUSE.

>> Suarez: JERRY GORDON, DO YOU AGREE WITH THAT?

>> YOU KNOW, HE'S RIGHT. THERE IS A POLITICAL ASPECT TO THIS. THERE ARE FAIRNESS COMPLAINTS BUT WHAT'S IMPORTANT TO REMEMBER IS THAT WE ARE FACING A PUBLIC POLICY CRISIS RIGHT NOW. WE'VE ALREADY HAD WELL OVER TWO MILLION PEOPLE LOSE THEIR HOMES IN THE FORECLOSURE SALE. WE HAVE ANOTHER FOUR MILLION OR SO IN THE PIPELINE SOMEWHERE IN THE FORECLOSURE PROCESS JUST WAITING FOR THE OTHER SHOE TO DROP. AND SOME ESTIMATES HAVE SAID THERE COULD BE ANOTHER FOUR OR FIVE MILLION OR MORE AFTER THAT STILL WAITING TO FORECLOSE. SO IT'S INCUMBENT UPON THE GOVERNMENT TO GET AHEAD OF THIS CRISIS. YOU KNOW, WE'VE JUST BEEN THROUGH A VERY DIFFICULT ECONOMIC RECESSION. IF WE DON'T FIX THE HOUSING MARKET, YOU KNOW, WE COULD SEE A RETURN TO THOSE CONDITIONS.

>> Suarez: HOW DO YOU EXPLAIN THE NOT UNIQUE SITUATION THAT WE SAW LAST NIGHT WHERE BANKS ARE ON THE ROAD TOWARD ENDING UP OWNING A HOUSE THAT THEY WILL SELL FOR CONSIDERABLY LESS THAN THE HOMEOWNER CURRENTLY OCCUPANT IS WILLING TO PAY?

>> THERE IS NOTHING ABOUT COMMON SENSE THAT CAN EXPLAIN IT. THE ONLY THINGS THAT EXPLAIN IT ARE THE EXTREMELY COMPLEX STRUCTURE OF THE HOME MORTGAGE MARK, HOW MORTGAGES ARE MADE AND SOLD AND TURNED INTO SECURITIES ON WALL STREET AND THEN HOW THESE ACCOUNTS ARE SERVICED BY OTHER COMPANIES THAT IN MANY CASES ARE OWNED BY OTHER BANKS. IT'S VERY COMPLICATED. THERE ARE A LOT OF CROSS-CUTTING INCENTIVES AND A LOT OF STUFF GOING ON BEHIND THE SCENES THAT YOU CAN'T REALLY SEE.

>> Suarez: SINCE THE HOUSING CRISIS BEGAN, BANKS HAVE ANNOUNCED WITH SOMETIMES WITH GREAT FANFARE PROGRAMS TO HELP OUT TROUBLED HOMEOWNERS, YET A VERY SMALL NUMBER AS WE HEARD IN OUR REPORT HAVE BEEN HELPED IN THAT WAY OVER THE THREE YEARS. WHAT'S GOING ON?

>> WELL, I THINK PART OF IT IS THAT THE NATURE OF THE PROBLEM HAS CHANGED. A COUPLE OF... YEAR OR TWO AGO A LOT OF THE PROBLEM INVOLVED SUB PRIME MORTGAGES AND SO FORTH. BUT AS THE RECESSION HAS DEEPENED AND AS THE JOBLESS RATE HAS GONE UP, A LOT OF MORTGAGES THAT WERE PRIME MORTGAGES AT THE TIME THEY WERE MADE ARE NOW IN DEFAULT BECAUSE OF A LOSS OF INCOME IN THE FAMILY AND THE ACCULUMATION OF OTHER DEBTS. PEOPLE ARE JUST NOT ABLE TO MAINTAIN THEIR MORTGAGE PAYMENT. THIS GETS TO WHAT I THINK IS ANOTHER ASPECT OF THIS PROBLEM. THAT IS IS THE GOVERNMENT ACTUALLY SOLVING PROBLEMS IN THE APPROACHES IT'S TAKING OR ARE WE SIMPLY ROLLING THE PROBLEM FORWARD AND PROLONGING THE HOUSING CRISIS? QUITE FRANKLY THERE ARE A NUMBER OF SITUATIONS WHERE ITS IN EVERYBODY'S INTEREST FOR THE HOMEOWNER TO GIVE UP THE OWNERSHIP OF THE HOUSE, TO BECOME A RENTER AGAIN SO THAT THE HOUSING MARKET CAN FIND ITS BOTTOM AND START TO COME BACK. WE SAW THIS IN TEXAS IN THE 1980s AND WE'RE GOING TO GO THROUGH THAT SAME PROCESS AGAIN.

>> Suarez: JUST LET THE MARKET WORK? HOW ABOUT THAT?

>> IF ONLY THE MARKET WORKED. IF THE MARKET WORKED WE WOULDN'T BE WHERE WE ARE NOW. A LOT OF PEOPLE LIKE TO TALK ABOUT THE HOUSING MARKET FINDING ITS BOTTOM. THERE'S NOT SOME OBJECTIVE BOTTOM OUT THERE THAT WE JUST NEED TO REACH. WHAT HAPPENS IN COMMUNITIES IS FORECLOSURES BEGET MORE FORECLOSURES. YOU HAVE A FORECLOSURE, THE VALUE OF THE NEIGHBORING HOMES EVEN IF THOSE PEOPLE ARE IN THEIR HOMES PAYING THEIR MORTGAGES, THE VALUE OF THEIR HOMES DROPS STEEPLY. THE TAX BASES OF THE COMMUNITY IS ERODED. THAT IMPACTS SCHOOLS AND MUNICIPAL SERVICES. THERE'S AN INCREASED DEMAND ON POLICE AND FIRE SERVICES. YOU KNOW, THERE'S INCREASED FROM VACANT HOMES. AND THAT CAUSES A DOWNWARD SPIRAL THAT SOME PEOPLE HAVE CALLED A DEATH SPIRAL IN THE NEIGHBORHOOD THAT IS ENTIRELY UNNECESSARY. AND THE REASON THE GOVERNMENT IS FORTUNATELY NOW GETTING INVOLVED, THOUGH FOR SOME YEARS THEY SAT ON THEIR HANDS, IS TO TRY TO SAVE THESE NEIGHBORHOODS, YOU KNOW, SOME PEOPLE HAVE CALLED THIS A 50- STATE KATRINA WHERE WHOLE NEIGHBORHOODS ARE JUST BEING DESTROYED. IN MANY CASES IT'S LOWER AND MIDDLE INCOME NEIGHBORHOODS. NEIGHBORHOODS THAT WERE STABLE NEIGHBORHOODS. NEIGHBORHOODS WHERE YOU HAD GRAND PARENTS ROCKING ON THE PORCH. AND THE ENTIRE INFRASTRUCTURE OF THAT NEIGHBORHOOD IS JUST GOING DOWN THE DRAIN.

>> Suarez: THANK YOU BOTH.

>> GLAD TO BE HERE.

>> THANK YOU.

>> Lehrer: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY. THE NUCLEAR SUMMIT ENDED IN WASHINGTON, AND PRESIDENT OBAMA SAID IT MADE THE WORLD SAFER. THE INTERIM GOVERNMENT IN KYRGYZSTAN WARNED THE OUSTED PRESIDENT TO RESIGN AND LEAVE THE COUNTRY OR FACE PRISON. THE NEWSHOUR IS ALWAYS ONLINE. KWAME HOLMAN, IN OUR NEWSROOM, PREVIEWS WHAT'S THERE. KWAME?

>> Holman: OUR SPOTLIGHT CITY COVERAGE CONTINUES. WE TAKE YOUR QUESTIONS FOR OUR TAMPA TOWN HALL MEETING. FIND OUT HOW TO SUBMIT THEM ON THE RUNDOWN. THERE'S MORE ON HEALTH CARE ON TONIGHT'S EDITION OF "FRONTLINE." PRODUCER MICHAEL KIRK OFFERS A BEHIND-THE-SCENES LOOK AT HOW THE NEW LAW CAME ABOUT, PLUS A CONVERSATION WITH POLITICO'S WHITE HOUSE EDITOR CRAIG GORDON ABOUT THE SELECTION OF A NEW SUPREME COURT JUSTICE. ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. GWEN?

>> Ifill: TOMORROW JUDY WOODRUFF WILL TURN THE SPOTLIGHT ON THE FEDERAL MONEY TRAIL.

>> Lehrer: AND I'M JIM LEHRER. WE'LL SEE YOU ONLINE, AND AGAIN HERE TOMORROW EVENING. THANK YOU, AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR IS PROVIDED BY: THE WILLIAM AND FLORA HEWLETT FOUNDATION, WORKING TO SOLVE SOCIAL AND ENVIRONMENTAL PROBLEMS AT HOME AND AROUND THE WORLD. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU. Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS Captioned by Media Access Group at WGBH access.wgbh.org