PBS NewsHour; September 23, 2011 6:00pm-7:00pm PDT

GOOD EVENING, I'M JIM LEHRER.

>> Suarez: AND I'M RAY SUAREZ. ON THE "NEWSHOUR" TONIGHT: WE ASSESS THE PALESTINIAN BID AND THE ISRAELI REACTION.

>> Lehrer: THEN, JEFFREY BROWN EXAMINES PRESIDENT OBAMA'S CHANGES TO THE "NO CHILD LEFT BEHIND" LAW.

>> Suarez: FROM ORLANDO, FLORIDA, JUDY WOODRUFF HAS THE LATEST ON THE G.O.P. PRESIDENTIAL CONTEST.

>> REPUBLICANS HAVE GATHERED IN THIS CRUCIAL BATTLEGROUND STATE AND LAST NIGHT BROUGHT YET ANOTHER SHOWDOWN BETWEEN FRONTRUNNERS RICK PERRY AND MITT ROMNEY.

>> Lehrer: AND MARK SHIELDS AND DAVID BROOKS ANALYZE THE WEEK'S NEWS. THAT'S ALL AHEAD ON TONIGHT'S "NEWSHOUR." MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY: ♪ ♪ MOVING OUR ECONOMY FOR 160 YEARS. BNSF, THE ENGINE THAT CONNECTS US. WE SPEND BILLIONS ON ADVANCED TECHNOLOGIES.

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>> Suarez: THE PALESTINIANS TOOK THEIR CAMPAIGN FOR STATEHOOD TO THE U.N. TODAY DEFYING U.S. WARNINGS. THE ISRAELIS MADE THEIR CASE AS WELL, INSISTING ANY SUCH MOVE WILL ONLY MAKE AN ULTIMATE PEACE HARDER TO COME BY. HOURS BEFORE THEIR LEADERS SPOKE AT THE U.N., PALESTINIAN STONE- THROWERS CLASHED WITH ISRAELI TROOPS IN THE WEST BANK TOWN OF NABI SALEH. AND ONE MAN WAS KILLED IN THE TOWN OF QUSRA. BUT IN RAMALLAH, PALESTINIANS CELEBRATED PEACEFULLY, ANTICIPATING THEIR OFFICIAL BID FOR U.N. RECOGNITION OF PALESTINIAN STATEHOOD. AND LATER, AT THE U.N., PALESTINIAN AUTHORITY PRESIDENT MAHMOUD ABBAS FORMALLY HANDED THE REQUEST TO SECRETARY- GENERAL BAN KI-MOON-- SEEKING ACTION BY THE SECURITY COUNCIL. THE U.S. OPPOSED THE MOVE. BUT ABBAS WON LONG APPLAUSE BEFORE THE U.N. GENERAL ASSEMBLY. HE CHARGED THAT NEGOTIATING FOR STATEHOOD WAS MEANINGLESS, SO LONG AS ISRAEL CONTINUES BUILDING SETTLEMENTS IN THE WEST BANK.

>> ( translated ): THIS POLICY WILL DESTROY THE CHANCES OF ACHIEVING A TWO-STATE SOLUTION UPON WHICH THERE IS AN INTERNATIONAL CONSENSUS, AND HERE I CAUTION, AND I CAUTION ALOUD: THIS SETTLEMENT POLICY THREATENS TO ALSO UNDERMINE THE STRUCTURE OF THE PALESTINIAN NATIONAL AUTHORITY AND EVEN END ITS EXISTENCE.

>> Suarez: UNDER THE CIRCUMSTANCES, THE PALESTINIAN LEADER INSISTED HIS PEOPLE WERE LEFT WITH NO OPTION EXCEPT GOING TO THE U.N.

>> ( translated ): WHEN WE BRING OUR PLIGHT AND OUR CASE TO THIS INTERNATIONAL PODIUM, IT IS A CONFIRMATION OF OUR RELIANCE ON THE POLITICAL AND DIPLOMATIC OPTION AND IS A CONFIRMATION THAT WE DO NOT UNDERTAKE UNILATERAL STEPS. OUR EFFORTS ARE NOT AIMED AT ISOLATING ISRAEL OR DE- LEGITIMIZING IT. AT A TIME WHEN THE ARAB PEOPLES AFFIRM THEIR QUEST FOR DEMOCRACY IN WHAT IS CALLED NOW THE ARAB SPRING. THE TIME HAS COME ALSO FOR THE PALESTINIAN SPRING, THE TIME FOR INDEPENDENCE.

>> Suarez: THE APPLAUSE TURNED INTO A STANDING OVATION WHEN ABBAS RAISED A COPY OF THE PALESTINIAN APPLICATION FOR STATEHOOD. ABOUT AN HOUR LATER, ISRAELI PRIME MINISTER BENJAMIN NETANYAHU STOOD BEFORE THE GENERAL ASSEMBLY WITH A VERY DIFFERENT MESSAGE. HE LIKENED THE GENERAL ASSEMBLY TO A THEATRE OF THE ABSURD WHEN IT COMES TO DEALING WITH ISRAEL. AND HE WARNED THAT ABBAS WAS SIMPLY WRONG ON THE ISSUE OF ISRAELI SETTLEMENTS.

>> THE CORE OF THE CONFLICT IS NOT THE SETTLEMENTS. THE SETTLEMENTS ARE A RESULT OF THE CONFLICT. IT'S AN ISSUE THAT HAS TO BE RESOLVED IN THE COURSE OF NEGOTIATIONS. THE CORE OF THE CONFLICT HAS ALWAYS BEEN THE REFUSAL TO RECOGNIZE A JEWISH STATE IN ANY BORDER. I THINK IT'S TIME FOR A PALESTINIAN LEADERSHIP TO RECOGNIZE WHAT EVERY SERIOUS LEADER HAS RECOGNIZED. FROM BALFOUR TO OBAMA, JUST TWO DAYS AGO RIGHT HERE. ISRAEL IS THE JEWISH STATE.

>> Suarez: NETANYAHU SAID ISRAEL IS WILLING TO MAKE PAINFUL COMPROMISES AND HE CHALLENGED ABBAS.

>> WE'VE BOTH JUST FLOWN THOUSAND OF MILES IN NEW YORK. NOW WE'RE IN THE SAME BUILDING. SO LET'S MEET HERE TODAY IN THE UNITED NATIONS. WHO IS THERE TO STOP US? WHAT IS THERE TO STOP US? WHAT IS THERE TO STOP US FROM BEGINNING PEACE NEGOTIATIONS?

>> Suarez: BUT AFTER 18 YEARS OF FAILED NEGOTIATIONS, THERE WAS NO SIGN THAT TALKS MIGHT RESUME. INSTEAD, SECRETARY-GENERAL BAN REFERRED THE PALESTINIAN STATEHOOD BID TO THE SECURITY COUNCIL THIS AFTERNOON FOR CONSIDERATION. ITS FATE THERE IS UNCERTAIN. A VOTE COULD BE WEEKS OR MONTHS IN COMING. THE U.S. HAS WARNED IT WILL VETO THE RESOLUTION, IF IT COMES TO THAT. AND IN HIS ADDRESS ON WEDNESDAY PRESIDENT OBAMA AGAIN URGED DIRECT NEGOTIATIONS. LATER TODAY, THE MIDEAST QUARTET-- THE U.S., EUROPEAN UNION, RUSSIA AND THE U.N.-- URGED A RETURN TO DIRECT NEGOTIATIONS WITHIN A MONTH. NOW, TWO ASSESSMENTS OF THE SPEECHES AND WHAT'S NEXT. FROM GHAITH AL-OMARI, A FORMER ADVISOR TO PRESIDENT ABBAS, NOW EXECUTIVE DIRECTOR OF THE AMERICAN TASK FORCE ON PALESTINE. AND DAVID MAKOVSKY, DIRECTOR OF THE PROJECT ON THE MIDDLE EAST PEACE PROCESS AT THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY AND FORMER EXECUTIVE EDITOR OF THE "JERUSALEM POST." GAITH, EARLIER THIS WEEK, THE OBAMA ADMINISTRATION TRIED TO CONVINCE MAHMOUD ABBAS NOT TO GO AHEAD WITH THE BID. OBVIOUSLY, THEY DIDN'T SUCCEED. BUT WHY NOW AND WHY THIS?

>> NOW BECAUSE THE TWO FACTORS. ONE IS A SENSE OF FRUSTRATION. I THINK THAT WAS EXPRESSED TODAY IN THE SPEECH, A FEELING THE NEGOTIATIONS WERE GOING NOWHERE, A FEELING SETTLEMENTS WERE BEING BUILT IN A WAY THAT WOULD UNDERMINE THE TWO-STATE SOLUTION. AND THE SECOND FACTOR, THE ARAB SPRING, THE MOVEMENT AMONG THE PEOPLE OF THE ARAB WORLD DEMANDING ACTION FROM THEIR GOVERNMENT, I THINK ABBAS FELT COMPELLED TO DO SOMETHING, MOVING THE BALL FORWARD.

>> Suarez: AN HOUR LATER, PRIME MINISTER BENJAMIN NETANYAHU DELIVERED A TOUGH SPEECH. HE SAID THINGS WILL GO BADLY ON THE GROUND IN THAT AREA ONCE THAT STATEHOOD BID IS MADE. WHAT DOES IT CHANGE FOR ISRAEL?

>> LOOK, I THINK HE WAS TRYING TO TELL THE WORLD, THE WAY STATEHOOD RUBS THROUGH PEACE, AND IT CANNOT BE DIVORCED FROM IT, AND ANYTHING DONE IN THE U.N. IS NOT JUST A PURELY SYMBOLIC MOVE BUT COULD HAVE REAL IMPLICATIONS IN MAKING PEACEMAKING MORE DIFFICULT. AND GIVEN THAT THESE PEOPLE LIVE ON TOP OF EACH OTHER, ALMOST, TOO MUCH HISTORY, TOO LITTLE GEOGRAPHY, THESE ARE THE PEOPLE THAT HAVE TO LIVE WITH THE RESULTS SO THEY HAVE TO ACTUALLY SIT TOGETHER AND SOLVE THEIR PROBLEMS. AND THEN THEY GO TO THE U.N. AND ANNOUNCE THE TWO-STATE SOLUTION.

>> Suarez: BUT WHAT DOES IT CHANGE? THE DOCUMENT HAS BEEN FILLED OUT, HANDED OVER WITH MUCH FANFARE. WHAT DOES IT CHANGE IN ISRAEL?

>> IT DISAPPOINT CHANGE MUCH. IT FOCUSES THE EFFORT OF THE QUARTET, THE U.S., EUROPEAN UNION, AS YOU SAID IN THE SETUP PIECE, TO CALL FOR RENEWED TALKS. THIS IS SOMETHING THE U.S. AND ISRAEL HAVE WANTED FOR A LONG TIME. SO BY WEIGHING IN THIS AFTERNOON AFTER THE TWO SPEECHES, THE INTERNATIONAL COMMUNITY IS BASICALLY SAYING LET'S CUT THE SYMBOLISM. LET'S GO STRAIGHT TO TALKS NOW. IT WILL CHANGE THINGS ONLY IN ISRAEL IF IT LEADS TO VIOLENCE AS A RESULT OF ALL THIS, IF THE DYNAMICS ARE UNLEASHED THAT CANNOT BE CONTROLLED. I DON'T THINK EITHER ABBAS OR NETANYAHU WANT THIS AT ALL, SO I THINK MAIN ARENA WITH THE INTERNATIONAL COMMUNITY WEIGHING IN IS THE RETURN TO TALKS.

>> THE SPEECH GOT A RAPTUROUS APPLAUSE AMONG MEMBERS OF THE GENERAL ASSEMBLY, NOW THAT THIS IS DONE, WHAT IS THE CHANGE FOR THE PALESTINIANS?

>> ONE THING THAT CHANGES FOR ABBAS HIMSELF IS HIS POPULARITY INTERNALLY HAS INCREASED. NO PALESTINIAN THINKS GOING TO THE U.N. WILL GET YOU A STAKE ON THE GROUND BUT HE FEELS IT WILL STRENGTHEN HIS NEGOTIATING POSITION. AT THE END OF THE DAY, HE KNOWS HE HAS TO GO BACK TO NEGOTIATIONS. HE TALKED ABOUT THIS IN HIS SPEECH. DAVID SAID, THE QUARTET NOW, WE WILL SEE DIPLOMACY OVER THE NEXT DAYS AND WEEKS TO TRY TO CREATE A FORMULA FOR BOTH SIDES TO GET TOGETHER BUT AT THE END OF THE DAY, I THINK ABBAS FEELS HE RAISED TEMPERATURE, INCREASED THE TEMPERATURE AND CREATING MORE LEVERAGE FOR HIMSELF.

>> Suarez: BUT, GAITH, IT'S BEEN WIDELY SAID BY FRIENDS OF BOTH SIDES THAT YOU NEED TWO SIDES TO TALK. THIS DOESN'T DISMANTLE A SINGLE SETTLEMENT, DOESN'T TAKE DOWN A YARD OF THE BARRIER WALL. WHY WAS IT SO IMPORTANT IF IT ANITIZEINIZES PEOPLE YOU HAVE TO TALK TO?

>> ON THE ONE HAND, ABBAS-- HE LOOKS TAT AS A WAY OF INCREASING HIS LEVERAGE. BUT AT THE END OF THE DAY, AND I THINK IT'S WORTH POINTING OUT, AS THE SYSTEMATIC WRANGLING GOES ON, THERE ARE THINGS HAPPENING ON THE GROUND THAT WE CAN BUILD ON. DAVID TALKED ABOUT THE RISK OF VIOLENCE. YET WE HAVE SECURITY COOPERATION THAT IS ONGOING. LET'S MAKE SURE THIS CONTINUES. THE PALESTINIANS HAVE BEEN WORKING ON BUILDING INSTITUTIONS TO INCREASE GOVERNANCE, INCREASE THE ECONOMY. LET'S MAKE SURE THIS GOES ON, BECAUSE THAT'S WHERE PROGRESS WILL REALLY HAPPY. UNTIL THEY GET TO THE RIGHT RACE AND UNTIL THE PARTYES OF BOTH SIDES AND IN THIS COUNTRY ALLOW US TO GO BACK TO MEANINGFUL NEGOTIATIONS.

>> Suarez: ALONG WITH A LONG LITANY OF GRIEVANCES, PRESIDENT ABBAS' SPEECH ALSO INCLUDED SEVERAL MESSAGES TO ISRAEL, ASSURING IT OF A PEACEFUL FUTURE AND OF SECURITY GUARANTEES THAT CAN BE DURABLE. WAS THIS IMPORTANT FOR ISRAELIS TO HEAR FROM THE U.N. TODAY?

>> I THINK, FRANKLY, RAY, IT WAS LOST. I MEAN, I THINK THE OVERALL IMPRESSION-- I'M GLAD, BY THE WAY, ABBAS SPOKE IN ARABIC. THAT'S IMPORTANT. BUT I THINK IT WAS BASICALLY ASSURING HIS OWN PEOPLE, THIS IS THE PALESTINIAN NARRATIVE THAT I'M BRINGING TO THE WORLD. THAT WAS, I THINK, CERTAINLY THE TONE THAT WAS HEARD. I DON'T THINK IT WAS MUCH MORE EXTENDING A HAND, HERE'S HOW WE CAN RENEW TALKS. I DON'T THINK THAT REALLY CARRIED OVER. HE DIDN'T PREPARE HIS PEOPLE FOR COMPROMISES OR BE SEEN AS TELLING THE ISRAELIS, HERE WE CAN BUILD THIS TWO-STATE SOLUTION. IT WAS MORE BRINGING THE PALESTINIAN NARRATIVE TO THE WORLD. I KIND OF EXPECTED IT. AND YOU COULD TELL BY THE REACTION IN RAMALATHAT'S WHAT THEY HEARD AND THAT WAS WELL RECEIVED.

>> Suarez: WHAT COT ISRAELIS NEED TO HEAR FROM THE PALESTINIANS NOW TO AT LEAST HAVE AN OPENING TO TALK? THE QUARTET HAS CALLED FOR NEW TALKS TODAY AND OTHER PROMINENT MEMBERS OF THE U.N.?

>> I THINK YOU NEED-- THEY WOULD WANT TO HEAR ABBAS SAY SOMETHING LIKE THIS-- WE UNDERSTAND YOUR FEARS. YOU HAVE TO UNDERSTAND OURSELVES. YOUR FREEZER YOU GOT OUT OF GAZA AND LEBANON AND YOU'VE GOT ROCKETS. AND WE KNOW WITH ARAB SPRING, EGYPT AND ADJOURNED ARE MUCH MORE SHAKIER NOW. WE UNDERSTAND THAT THESE SECURITY REALLIES HAVE BEEN TO BE IRONCLAD FOR YOU, THAT THE PEACE HAS TO BE EVERY BIT AS STRONG AS THE LAND THAT IS TANGIBLE WE EXPECT TO DEIGN. I THINK HE HAS TO FOCUS MUCH MORE ON THE SECURITY SIDE. IT'S CLEAR ON THE LAND SIDE HE HAD ALREADY HEARD FROM PRESIDENT OBAMA AND NETANYAHU KIND OF HINTED AT IT TODAY THAT IT WILL BE BASED ON THE '67 LINES PLUS LAND SWAPS-- THAT MEANS LAND EXCHANGES. SO BOTH SIDES HAVE TO BE ASSURED GOING FORWARD.

>> Suarez: GIVEN THE WAY THINGS STAND AT THE CLOSE OF TODAY, IS THE PALESTINIAN DELEGATION INCLINED TO GIVE ISRAEL WHAT IT NEEDS TO REOPEN TALKS?

>> AS DAVID MENTIONED TODAY, BOTH LEADERS SPOKE TO THEIR CONSTITUENCIES, AND THAT'S THE ONLY WAY TO UNDERSTAND HOW NETANYAHU TALKED ABOUT IN THE U.N. BOTH SIDES I THINK NOW GO BACK HOME FEELING MORE STRENGTHENED, FEELING MORE ENERGIZED, FEELING THEY HAVE A MORE SECURITY BASE. I THINK IF WE PLAY THE DIPLOMACY RIGHT, WE CAN BUILD ON THE SENSE OF TRIUMPH BOTH SIDES HAVE TO BRING THEM TOGETHER FOR TALKS. WHAT THE PALESTINIANS NEEDED TO HEAR FROM THE ISRAELIS IS CLARITY, WHAT ARE THE BASIS OF THE NEGOTIATIONS, MUTUAL SWAP AS PRESIDENT OBAMA CALLED FOR AND TO HEAR SOMETHING ABOUT SETTLEMENTS. ONCE WE HAVE THESE BASIC ISSUES TAKEN INTO ACCOUNT, ONCE BOTH SIDES HEAR FROM EACH SIDE WHAT THEY NEED ON HEAR, I THINK THERE IS ROOM FOR NEGOTIATION. KEEP IN MIND, BOTH THE RELLS AND PALESTINIANS-- THE PUBLICS, I MEAN-- WHAT WE HAVE BEEN HEARING ABOUT FOR YEARS, 70% OF BOTH COMMUNITIES WANT A TWO-STATE SOLUTION. WHAT WE NEED ARE EMPOWERED LEADERS WHO WILL BE ABLE ON DELIVER THAT AND I HOPE WHAT HAPPENED TODAY WILL LEAD TO THE LEADERS FEELING MORE SECURE AND ABLE TO MAKE THE NECESSARY CONCESSIONS.

>> Suarez: DAVID, BEFORE I LET YOU GO--

>> RAY, I CAN JUST ECHO THAT THOUGHT? I THINK IF THE NET EFFECT OF TODAY WAS BOTH SIDES GIVING MUSCULAR SPEECHES TO THEIR PUBLIC GIVES THEM THE POLITICAL COVER TO PIVOT, TO TALK TO EMPOWERED LEADERS, THEN MAYBE SOMETHING GOOD CAME OUT OF THIS. IF THEY DON'T MAKE THE PIVOT, I FEAR THIS COULD BE A SLIPPERY SLOPE DOWNWARDS TOWARDS CONFRONTATION.

>> Suarez: WHEN YOU SAY, "MAKE THE PIVOT," ARE WE TALKING A FEW WEEKS, A FEW MONTHS? IS THIS A MOMENT THAT HAS TO BE CAPTURED QUICKLY.

>> IN THE MIDDLE EAST, THE POPULARITY DOESN'T LAST TO GO AND I THINK THEY NEED TO PIVOT SOON AND I THINK THAT'S WHY IT'S IMPORTANT WHAT THE QUARTET DID THIS AFTERNOON AND CALLED FOR THE DIRECT TALKS. THIS HAS BEEN IN THE WORKS SINCE MAY AND THEY JUST RELEASED A STATEMENT, NOT COINCIDENTALLY, AFTER THE SPEECHES OF THE TWO LEADERS TODAY. DAVID MAKOVSKY, GAITH AL-OMARI, GENTLEMEN, THANK YOU, BOTH.

>> THANK YOU,.

>> THANK YOU, RAY.

>> Lehrer: STILL TO COME ON THE "NEWSHOUR": CHANGES TO "NO CHILD LEFT BEHIND"; THE REPUBLICAN DEBATE IN ORLANDO. PLUS, SHIELDS AND BROOKS. BUT FIRST, THE OTHER NEWS OF THE DAY. HERE'S KWAME HOLMAN.

>> Holman: STOCK MARKETS ON BOTH SIDES OF THE ATLANTIC RECOUPED A LITTLE OF THEIR LOSSES TODAY. KEY INDEXES ACROSS EUROPE WERE UP AND ON WALL STREET. THE DOW JONES INDUSTRIAL AVERAGE GAINED 37 POINTS TO CLOSE AT 10,771. THE NASDAQ ROSE 27 POINTS TO CLOSE AT 2483. BUT FOR THE WEEK, THE DOW LOST MORE THAN 6%. THE NASDAQ FELL 5%. CONGRESS WENT INTO THE WEEKEND, STILL DEADLOCKED OVER DISASTER AID. HOUSE REPUBLICANS PASSED A BILL TO KEEP THE GOVERNMENT RUNNING INTO NOVEMBER. IT INCLUDED $3.7 BILLION FOR FEMA-- THE FEDERAL DISASTER AGENCY. IT WAS PAID FOR, IN PART, BY CUTTING ENERGY TECHNOLOGY LOAN PROGRAMS. IN THE SENATE, REPUBLICAN LEADER MITCH McCONNELL SAID THE DAYS OF ADDING DISASTER COSTS TO THE DEFICIT ARE OVER.

>> THE WHOLE "THAT'S THE WAY WE'VE ALWAYS DONE IT" ARGUMENT IS THE REASON WE'VE GOT A $14 TRILLION DEBT RIGHT NOW. IF WE PASS IT, FEMA WILL HAVE THE FUNDS THEY NEED TO RESPOND TO THESE EMERGENCIES. THAT'S NOT THE ISSUE HERE. WHAT'S AT ISSUE IS WHETHER WE'RE GOING TO ADD TO THE DEBT, OR NOT.

>> Holman: BUT SENATE DEMOCRATS OBJECTED TO THE CUTS, AND BLOCKED THE BILL. LATER, MAJORITY LEADER HARRY REID SAID DEMOCRATS WOULD ACCEPT THE $3.7 BILLION FIGURE, IF REPUBLICANS WOULD GIVE WAY ON THE LOAN CUTS.

>> IT'S A SIMPLE THING, AND I CAN'T UNDERSTAND THEIR LOGIC-- MONEY TO GO THROUGH MONDAY OR TUESDAY IF WE'RE FORTUNATE.

>> Holman: FURTHER ACTION WILL NOW WAIT UNTIL MONDAY, AT THE EARLIEST. IF THERE IS NO AGREEMENT, THE GOVERNMENT WILL RUN OUT OF MONEY AND FACE A SHUTDOWN BY NEXT WEEKEND. THE PRESIDENT OF YEMEN ALI ABDULLAH SALEH MADE A SURPRISE RETURN FROM SAUDI ARABIA TODAY. HE CALLED FOR A CEASE-FIRE BETWEEN SUPPORTERS OF HIS GOVERNMENT AND PROTESTERS. INSTEAD, SALEH'S REAPPEARANCE ADDED FUEL TO THE PROTESTS. THOUSANDS GATHERED IN SANAA THE CAPITAL CHANTING AND CARRYING COFFINS IN HONOR OF THOSE KILLED BY GOVERNMENT FORCES. IN PAKISTAN, TOP OFFICIALS DISMISSED U.S. ALLEGATIONS THAT THEIR SPY AGENCY ACTIVELY AIDED MILITANTS WHO ATTACKED THE U.S. EMBASSY IN AFGHANISTAN. THE CHAIRMAN OF THE U.S. JOINT CHIEFS ADMIRAL MIKE MULLEN SAID YESTERDAY THE HAQQANI MILITANT GROUP IS A VIRTUAL ARM OF PAKISTANI INTELLIGENCE. IN KARACHI, PAKISTANI PRIME MINISTER YOUSUF RAZA GILANI INSISTED HIS COUNTRY IS NOT SOME ROGUE SPONSOR OF TERROR.

>> ( translated ): WE ARE NOT ISOLATED. WE HAVE GOOD RELATIONS WITH THE WHOLE WORLD. WE HAVE GOOD RELATIONS IN OUR REGION AND WITH OUR NEIGHBORS. WE WANT TO STRENGTHEN OURSELVES ECONOMICALLY, BUT IN RESPONSE TO THESE KIND OF AMERICAN MESSAGES, "THEY CAN'T LIVE WITH US AND THEY CAN'T LIVE WITHOUT US." SO, I WOULD SAY TO THEM THAT IF THEY CAN'T LIVE WITHOUT US, THEY SHOULD INCREASE CONTACTS WITH US TO REMOVE MISUNDERSTANDINGS.

>> Holman: DESPITE THAT PROTEST, A WHITE HOUSE SPOKESMAN CALLED TODAY FOR PAKISTAN TO BREAK ANY LINKS IT HAS TO THE HAQQANI NETWORK. A DEAD SATELLITE HURTLING TOWARD EARTH HAS SLOWED DOWN. NASA SAID TODAY THE PIECES OF THE SIX-TON SATELLITE MAY NOT STRIKE EARTH UNTIL LATE FRIDAY OR EARLY SATURDAY. MOST FRAGMENTS ARE EXPECTED TO BURN UP IN THE ATMOSPHERE, BUT AT LEAST TWO DOZEN COULD HIT GROUND SOMEWHERE. NASA SAID TODAY THERE'S A SMALL CHANCE SOME OF THE DEBRIS MIGHT LAND IN THE U.S. AFTER ALL. THE TOP EXECUTIVES FROM A BANKRUPT SOLAR ENERGY COMPANY REFUSED TO ANSWER QUESTIONS TODAY AT A HOUSE HEARING. SOLYNDRA-- BASED IN CALIFORNIA-- GOT A FEDERAL LOAN GUARANTEE OF $528 MILLION UNDER PRESIDENT OBAMA'S STIMULUS PROGRAM. THIS MONTH, THE FIRM FILED FOR BANKRUPTCY PROTECTION AND LAID OFF 1,100 WORKERS. TODAY, C.E.O. BRIAN HARRISON AND CHIEF FINANCIAL OFFICER BILL STOVER REPEATEDLY INVOKED THEIR RIGHT AGAINST SELF- INCRIMINATION.

>> I WANT ASK MR. HARRISON IF HE THINKS THE AMERICAN PEOPLE WHO HAVE INVESTED OVER A HALF A BILLION DOLLARS DESERVE TO KNOW WHAT HAPPENED TO THAT MONEY?

>> ON ADVICE OF MY COUNSEL, I INVOKE THE PRIVILEGE AFFORDED TO ME BY THE 5TH AMENDMENT OF THE CONSTITUTION AND I RESPECTFULLY DECLINE TO ANSWER.

>> I WANT TO ASK THE SAME QUESTION TO MR. STOVER.

>> ON THE ADVICE OF MY COUNSEL, I INVOKE THE PRIVILEGE AFFORDED ME BY THE 5TH AMENDMENT OF THE U.S. CONSTITUTION AND I RESPECTFULLY DECLINE TO ANSWER ANY QUESTION.

>> Holman: TWO CONGRESSIONAL COMMITTEES, PLUS THE ENERGY DEPARTMENT'S INSPECTOR GENERAL AND THE JUSTICE DEPARTMENT ARE INVESTIGATING THE SOLYNDRA CASE. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO JIM.

>> Lehrer: AND WE TURN TO THE CHANGES IN A LANDMARK EDUCATION LAW. TOM BEARDEN STARTS WITH SOME BACKGROUND.

>> Reporter: AMID BIPARTISAN PRAISE, PRESIDENT BUSH SIGNED "NO CHILD LEFT BEHIND" INTO LAW IN 2002. THE SWEEPING EDUCATION REFORM SOUGHT TO MAKE SURE MORE PUBLIC SCHOOLS AND MORE STUDENTS PERFORMED UP TO EXPECTATIONS. BUT ALMOST TEN YEARS LATER PRESIDENT OBAMA SAID TODAY, THE LAW WAS NOT WORKING.

>> I WANT TO SAY THE GOALS BEHIND "NO CHILD LEFT BEHIND" WERE ADMIRABLE. AND PRESIDENT BUSH DESERVES CREDIT FOR THAT. HIGHER STANDARDS ARE THE RIGHT GOAL. ACCOUNTABILITY IS THE RIGHT GOAL. CLOSING THE ACHIEVEMENT GAP IS THE RIGHT GOAL. AND WE'VE GOT TO STAY FOCUSED ON THOSE GOALS. BUT EXPERIENCE HAS TAUGHT US THAT IN ITS IMPLEMENTATION "NO CHILD LEFT BEHIND" HAD SOME SERIOUS FLAWS THAT ARE HURTING OUR CHILDREN INSTEAD OF HELPING.

>> Reporter: THE PRESIDENT SAID THE LAW'S HEAVY RELIANCE ON ANNUAL TESTING LED EDUCATORS TO TEACH TO THE TEST AND DE- EMPHASIZE HISTORY AND SCIENCE -- IN THE QUEST TO IMPROVE READING AND TH SCORES. DESPITE THAT EFFORT, EDUCATION SECRETARY ARNE DUNCAN HAS WARNED THAT MORE THAN 80% OF THE NATION'S SCHOOLS RISK BEING LABELED FAILURES UNDER THE LAW BY 2014. SO, THE PRESIDENT TODAY ANNOUNCED WAIVERS FOR STATES IF THEY OFFER THEIR OWN PLANS THAT MEET FEDERAL STANDARDS.

>> WE CAN'T LET ANOTHER GENERATION OF YOUNG PEOPLE FALL BEHIND BECAUSE WE DIDN'T HAVE THE COURAGE TO RECOGNIZE WHAT DOESN'T WORK, ADMIT IT, AND REPLACE IT WITH SOMETHING THAT DOES.

>> Reporter: MR. OBAMA INSISTED HE IS NOT WEAKENING THE LAW, BUT HELPING STATES SET HIGHER STANDARDS. AND HE SAID CONGRESSIONAL DELAY IN ADDRESSING THE ISSUE HAD FORCED HIS HAND.

>> OUR KIDS ONLY GET ONE SHOT AT A DECENT EDUCATION AND THEY CANNOT AFFORD TO WAIT ANY LONGER. SO GIVEN THAT CONGRESS CANNOT ACT, I AM ACTING.

>> Reporter: AS MANY AS 45 STATES ARE EXPECTED TO START RECEIVING THE WAIVERS, EARLY NEXT YEAR.

>> Suarez: AND WE EXPLORE WHAT THOSE CHANGES MEAN FOR SCHOOLS AND STUDENTS. FOR THAT, JEFFREY BROWN SPOKE WITH A SCHOOL SUPERINTENDENT AND EDUCATION ADVOCATE AFTER THE PRESIDENT'S PLAN WAS ANNOUNCED, BUT BEFORE HE DELIVERED HIS SPEECH.

>> Brown: THERE ARE,, A WIDE RANGE OF PERSPECTIVES ABOUT THE NO CHILD LEFT BEHIND LAW AND ITS IMPACT. WE GET TWO VIEWS OF IT AS WELL AS THE PRESIDENT'S CHANGES WITH KATIE HICK OX, PRESIDENT OF THE EDUCATION TRUST, AN ORGANIZATION WORKING TO IMPROVE STUDENT OUTCOMES WITH AN EMPHASIS ON LOWER INCOME AND MINORITY STUDENT, AND JACK DALE, SUPERINTENDENT OF THE FAIRFAX COUNTY PUBLIC SCHOOLS IN VIRGINIA, THE NATION'S 11th LARGEST SCHOOL SYSTEM. IT HAS MORE THAN 175,000 STUDENTS. WELCOME TO BOTH OF YOU.

>> KATY HICK OX, I'LL START WITH YOU, WHAT IS THE OBAMA ADMINISTRATION RESPONDING TO? WHAT IS THE PROBLEM THAT NEEDS TO BE FIXED FROM WHERE YOU SIT?

>> THE IMPORTANT THING TO KEEP IN MIND HERE IS THE NO CHILD LEFT BEHIND LAW HAS HAD AN ENORMOUSLY POSITIVE IMPACT IN CAPTURING THE ATTENTION OF EDUCATORS AROUND THE COUNTRY AND IN SENDING A SIGNAL THAT WE EXPECT IMPROVEMENTS IN ACHIEVEMENT, AND YOU CAN NO LONGER HIDE UNDER THE AVERAGE OF YOUR OVERALL ACHIEVEMENT, THE UNDERPERFORMANCE OF SOME GROUPS OF CHILDREN, MINORITY, POOR CHILDREN AND THE LIKE.

>> Brown: BUT?

>> BUT 10 YEARS HAVE PASSED SINCE THAT LAW WAS PUT INTO PLACE. IT SHOULD HAVE BEEN AWLERRED BY CONGRESS FIVE YEARS AFTER IT WAS PUT INTO PLACE. AND THE FACT OF THE MATTER IS, WE'VE LEARNED A LOT IN THOSE 10 YEARS ABOUT HOW TO IMPROVE ACHIEVEMENT WHAT, WORKS AND WHAT DOESN'T, AND THE LAW'S SANCTIONS AND LABELS DON'T TAKE ACCOUNT OF THAT. SO WHAT WE'RE FINDING IS THE KIND OF RIGID STRUCTURES OF LAW ARE GETTING IN THE WAY OF EFFORTS TO IMPROVE ACHIEVEMENT FOR ALL KIDS.

>> Brown: ALL RIGHT, SO LET ME ASK YOU, MR. DALE, HOW DOES THAT SHOW ITSELF, MA MANIFEST ITSELFN THE CLASSROOM. WHY ARE SCHOOLS HAVING TROUBLE MEETING THE GOALS?

>> I THINK THE GOALS AS KATY SAID ARE LOFTY. WHAT YOU SEE IN THE CLASSROOM IS THIS OBSESSION WITH TESTING INSTEAD OF AN OBSESSION WITH LEARNING, BECAUSE WE'VE BEEN SO MUCH AROUND THE TESTING SIDE OF IT WE HAVEN'T PAID ATTENTION TO KIDS ACTUALLY LEARNING AND ALL THE DIFFERENT THINGS BESIDES JUST LEARNING TO READ AND DO COMPUTATIONS WITH MATHEMATICS BUT LEARNING HOW TO THINK CRITICALLY, HOW TO PROBLEM SOLVE, HOW TO WORK WITH OTHER KIDS AND THAT KIND OF THING. THE FEEDBACK I GET REPEATEDLY FROM PARENTS IS WAY TOO MUCH FOCUS ON TESTING. SO THAT'S ONE OF THE CHALLENGES RIGHT THERE. THE OTHER CHALLENGE WAS MOVING UP THE BAR EVERY YEAR TO ASSUME THAT ON A GIVEN INSTANT, 100% OF THE KIDS WOULD ALWAYS PASS THE TEST AND WE HAD THIS FOCUS ON A ONE-SHOT PIECE OF TESTING AS OPPOSED TO CHANGE THAT I THINK WE SHOULD HAVE IS ONE WHERE YOU CAN FOCUS ON KIDS DID YOU LEARN? IF YOU DIDN'T LEARN IT, THEN HOW CAN YOU REELSEWHERE IT, AND THEN DEMONSTRATE YOUR COMPETENCE?

>> Brown: AS IT STANDS NOW, MANY SCHOOLS CAN'T PASS.

>> IN LARGE PART BECAUSE YOU HAVE RESTRICTIONS HOW YOU USE YOUR TIME NOT ONLY FROM THE FEDERAL LEVEL BUT THE STATE LEVEL BECAUSE THE STATE ACTUALLY CONTROLS MORE OF OUR RIGGATORY ENVIRONMENT THAN FEDS DO. BUT THE FEDS OVERLAID THIS SET OF EXPECTATIONS THAT BECOME IMPOSSIBLE AND NONSENTENCEICLE.

>> Brown: SO IF PRESIDENT AND SECRETARY DUNCAN ARE LAYING OUT CHANGES NOW WITH THE MAIN IDEA OF GIVING MORE FLEXIBILITY, I GUESS, TO THE STATES, WHAT KIND OF IMPACT WOULD YOU-- WOULD YOU SEE THAT HAVING?

>> WELL, WHAT THE HOPE IS HERE-- AND IT'S REALLY IMPORTANT THAT STATES KIND OF STEP UP-- WHAT THE HOPE IS HERE IS STATES WILL STEP UP WITH QUITE AGGRESSIVE SYSTEMS OF THEIR OWN BUT ONES THAT ARE MORE FLEXIBLE TO MEET THEIR NEEDS. SO, FOR EXAMPLE, UNDER CURRENT LAW, IF THE SCHOOL DOESN'T MEET ITS TARGETS, IT HAS TO DO CERTAIN THINGS SPECIFIED BY FEDERAL GOVERNMENT. IT HAS TO GIVE STUDENTS CHOICE TO LEAVE THE SCHOOL, ASK TO PROVIDE TUTORIAL SERVICES, NONE, ACTUALLY, OF THE THINGS WE KNOW REALLY MAKE A DIFFERENCE IN HELPING STUDENTS LEARN MORE. SO WHAT THIS WOULD ALLOW A STATE TO DO IS SAY-- IF A SCHOOL MISSES ITS TARGETS BY A LITTLE BIT, THIS IS THE KIND OF HELP WE'RE GOING TO GIVE THE TEACH IN IMPROVING WHAT THEY DO OR THIS IS THE KIND OF AFTER-SCHOOL HELP WE'LL GIVE THE KIDS, NOT WHAT THE FEDERAL GOVERNMENT HAS DECIDED. IF THE SCHOOL, ON THE OTHER HAND, MISSES ALL OF ITS TARGETS AND CONTINUOUSLY FAILS, WHAT THE STATE WILL HAVE TO DO IS SHOW WHAT THEY'RE GOING TO DO TO MAKE SURE THAT THAT SCHOOL CHANGES QUICKLY FOR KIDS WHO HAVE BEEN MISSERVED FOR SO LONG.

>> Brown: NOW DO SCHOOLS-- THE NEW APPROACH STILL PUTS REQUIREMENTS ON THE STATES.

>> YOU DON'T WANT TO LOSE THAT BECAUSE I THINK KATY WOULD AGREE WAS ONE OF THE BENEFITS OF NO CHILD LEFT BEHIND WAS A VERY SERIOUS LOOK AT STUDENT ACHIEVEMENT AND EXPECTATIONS THAT ALL KIDS CAN, IN FACT, LEARN. BUT WHAT IT DOES MISS THE MARK ON WHAT ARE THE INTERVENTIONS SCHOOLS CAN USE THAT WE'VE LEARNED OVER THE LAST 10 YEARS, OR EVEN LONGER, THAT REALLY WORK IN A SCHOOL. FOR EXAMPLE, WE'VE HAD THREE SCHOOLS WHO WERE IN SANCTION A YEAR AGO AND-- ACTUALLY, TWO YEARS AGO, AND THROUGH TWO SUCCESSIVE YEARS OF PHENOMENAL IMPROVEMENT, ARE OUT OF SANCTIONS. BUT THE THINGS THAT THEY DID DON'T LINE UP AT ALL WITH WHAT THE PRESCRIPTIONS WERE IN THE FEDERAL GOVERNMENT, LIKE WHAT KATY WAS TALKING ABOUT. WHAT WE HAVE LEARNED IS HOW IMPORTANT IT IS FOR TEACHERS WORK AS TEAMS OF TEACHERS ON VERY DIFFICULT LEARNING SITUATIONS FOR SOME KIDS WHO ARE WAY BEHIND CURVE BUT HOW CAN WE ACCELERATE THEIR LEARNING IN ONE SCHOOL YEAR TO HAVE THEM UP WITH THEIR COLLEAGUES? IT'S NOT AN EASY THING TO DO.

>> Brown: YOU SEE IN THE POTENTIAL CHANGEES, EVEN THOUGH THERE ARE REQUIREMENTS, STILL, REAL CHANGE--

>> I'M HOPING SO. I THINK THE DEVIL WILL BE, AS ALWAYS, IN THE DETAILS.

>> AND THE DEVIL WILL BE IN WHAT STATES PROPOSE. ONE OF THE THINGS THAT'S REALLY IMPORTANT I THINK TO KEEP IN MIND HERE, AS AMERICANS, WE-- WE NEED OUR SCHOOLS TO MAKE NOT JUST A LITTLE BIT OF IMPROVEMENT OVER THE NEXT FEW YEARS BUT A LOT OF IMPROVEMENT OVER THE NEXT FEW YEARS SO THIS CAN'T BE ABOUT TAKING OUR FOOT OFF THE PEDAL. WE DESPERATELY NEED OUR KIDS TO LEARN MORE. THEY'RE NOT LEARNING NEARLY AS MUCH AS THEIR COUNTER-PARTS IN OTHER COUNTRIES AND THAT IS ESPECIALLY TRUE OF POOR AND MINORITY KIDS WHO ARE NOW A MAJORITY OF OUR KIDS.

>> Brown: HOW MUCH CONCERN IS THERE STILL ABOUT THE GOVERNMENT HAVING TOO MUCH SAY IN WHAT THE STATES AND DISTRICTS DO AT THIS POINT BECAUSE THIS IS-- IT HAS BEEN ONE OF THE CRITICISMS OF NO CHILD LEFT BEHIND. LOUIS GOING TO BE A LEGAL DEBATE, I THINK, A CHALLENGE THOUGH THIS, RIGHT, AND WE CAN'T RESOLVE THE LEGAL DEBATE HERE, BUT FROM WHERE YOU SIT, IS IT STILL AN ISSUE, STILL SOMETHING--

>> WHAT I HAVE TO DEAL WITH WHEN REALITY HITS THE GROUND IN FAIRFAX IS I'VE GOT FEDERAL REQUIREMENTS. I HAVE A STATE LEGISLATURE WHO DOESN'T ALWAYS AGREE WITH THE FEDERAL GOVERNMENT SO THEY HAVE THEIR OWN SET, NOT NECESSARILY IN SYNC AT ALL-- IN FACT, SOMETIMES CONTRADICTORY-- AND THEM WE HAVE LOCAL COMMUNITY MEMBERS WHO WANT YET SOMETHING DIFFERENT. ONE OF THE THINGS I WANT TO SEE IN THE FLEXIBLE IS FOR US, PARTICULARLY IN THE COMMUNITY I SERB, IS I CAN'T JUST FOCUS ON READING AND MATH. I'VE GOT TO FOCUS ON A LOT OF RICHER SET OF SKILLS FOR KIDS IN CRITICAL THINKING AND PROBLEM SOLVING, COMPLEX PROBLEMS OF THE WORLD, AND THAT'S THE THINGS THAT OUR KIDS NEED TO ENGAGE IN. AND HOW CAN WE BACKWARD MAP THAT INTO DEMONSTRATING COMPETENCY AND READING AND MATH AND THAT SORT OF THING? IT'S A VERY DIFFERENT FOCUS THEY NEED SOME FLEXIBILITY ON TO MEET OUR COMMUNITY'S DEMANDS OF OUR KIDS.

>> Brown: DO YOU SEE THIS AS AN ISSUE AROUND THE COUNTRY, THE FEDERAL ROLE?

>> WELL, INTERESTINGLY, OUR NATIONAL GOVERNMENT ACTUALLY HAS LESS POWER AND LESS AUTHORITY AND LESS INVOLVEMENT IN EDUCATION THAN VIRTUALLY EVER OTHER DEVELOPED COUNTRY IN THE WORLD. PROBLEM REALLY ISN'T FEDERAL, THE FEDERAL ROLE HERE. PROBLEM IS THE ONE JACK TALKED ABOUT. WE HAVE MULTIPLE LEVELS OF GOVERNMENT THAT DON'T TALK TO EACH OTHER.

>> Brown: THAT'S NOT CHANGING, THOUGH.

>> THAT'S NOT CHANGING IN-- BUT WHAT IS CHANGING IS THE BALANCE BETWEEN FEDERAL AND STATE IS REITER, I THINK, THIS TIME. WHAT ESSENTIALLY THE FEDERAL GOVERNMENT IS SUGGESTING IS THAT'S WE STILL HAVE A MEADE TO MOVE OUR COUNTRY AHEAD QUICKLY IN EDUCATION, BOTH FOR ALL KIDS AND FOR THE KIDS WHO HAVE BEEN BEHIND. BUT WE'RE GOING TO SET THE GOALS HERE, KEEP THAT TIGHT, BUT KEEP LOOSER HOW YOU GET THERE. AND SO WHAT I THINK THIS IS LIKELY TO DO-- ALTHOUGH IT WON'T HAPPEN OVERNIGHT-- ITS TO BEGIN GET MORE OWNERSHIP FOR STATES AND FEWER CONFLICTS BETWEEN FEDERAL AND STATE IDEAS WHICH SHOULD MAKE IT EASIER FOR REFORM-MINDED'DICATORS TO MOVE AHEAD.

>> ONE OF THE EXAMPLES PROPOSED IS RELAXING SOME OF THE RESTRICTIONS ON HOW WE CAN ALLOCATE AND SPEND THE DIFFERENT TITLE FUNDS, TITLE ONE, TITLE II, TITLE 3, ET CETERA, WHICH IS PART OF THE FEDERAL ALLOCATION. IT GIVES ME FLEXIBILITY TO FIGURE OUT WHERE IT BEST TO PLACE THOSE RESOURCES INSTEAD OF IN A PRINTIVE THAT MAY NOT WORK FOR US IN FAIRFAX.

>> Brown: THANK YOU BOTH VERY MUCH.

>> Suarez: AFTER WE SPOKE WITH JACK DALE, HE ANNOUNCED HE WOULD STEP DOWN AS SUPERINTENDENT OF FAIRFAX PUBLIC SCHOOLS IN 2013.

>> Lehrer: NOW TO THE RACE FOR THE REPUBLICAN PRESIDENTIAL NOMINATION. THERE ARE NOW TWO LEADING CONTENDERS SEEKING TO DRAW SHARP LINES OF DISTINCTION BETWEEN EACH OTHER. JUDY WOODRUFF BRINGS US HIGHLIGHTS FROM LAST NIGHT'S DEBATE.

>> Reporter: IT WAS TEXAS GOVERNOR RICK PERRY AND FORMER MASSACHUSETTS GOVERNOR MITT ROMNEY ONCE AGAIN AT EACH OTHER'S THROATS AT LAST NIGHT'S DEBATE-- THE THIRD TIME IN AS MANY WEEKS. THE SHARPEST CONTRASTS OF THE NIGHT CAME ON IMMIGRATION, HEALTH CARE AND SOCIAL SECURITY, WITH PERRY FORCED TO DEFEND HIS CRITICISM OF THE PROGRAM TENS OF MILLIONS OF SENIORS ARE ENROLLED IN.

>> NOW, IT'S NOT THE FIRST TIME THAT MITT HAS BEEN WRONG ON SOME ISSUES BEFORE. AND THE BOTTOM LINE IS, IS WE NEVER SAID THAT WE WERE GOING TO MOVE THIS BACK TO THE STATES.

>> Reporter: ROMNEY-- SEEKING TO GAIN AN ADVANTAGE ON THE ISSUE-- ACCUSED PERRY OF RUNNING AWAY FROM HIS OWN WORDS.

>> THERE'S A RICK PERRY OUT THERE THAT IS SAYING AND ALMOST TO QUOTE, IT SAYS THAT THE FEDERAL GOVERNMENT SHOULDN'T BE IN THE PENSION BUSINESS, THAT IT'S UNCONSTITUTIONAL. UNCONSTITUTIONAL AND IT SHOULD BE RETURNED TO THE STATES. SO YOU BETTER FIND THAT RICK PERRY AND GET HIM TO STOP SAYING THAT.

>> Reporter: THERE WERE NINE CANDIDATES ON STAGE IN ORLANDO-- THE DEBATE HOSTED BY FOX NEWS AND GOOGLE-- IN THIS CRITICAL BATTLEGROUND STATE OF FLORIDA. BUT MOST OF THE ATTENTION WAS ON THE TWO FRONTRUNNERS. AND PERRY'S ATTEMPT TO PAINT ROMNEY A FLIP-FLOPPER ON SEVERAL ISSUES SEEMED TO MISS IT'S MARK.

>> IS IT THE MITT ROMNEY THAT WAS ON THE SIDE OF-- AGAINST THE SECOND AMENDMENT BEFORE HE WAS FOR THE SECOND AMENDMENT? WAS IT... WAS BEFORE... HE WAS BEFORE THE SOCIAL PROGRAMS FROM THE STANDPOINT OF-- HE WAS FOR STANDING UP FOR ROE V. WADE BEFORE HE WAS AGAINST FIRST ROE V. WADE, HE SAID. I MEAN, WE'LL WAIT UNTIL

>> Reporter: PERRY ALSO HAD TO DEFEND HIMSELF AGAINST CRITICISM OF HIS RELATIVELY MODERATE STAND ON IMMIGRATION, INCLUDING A TEXAS POLICY GRANTING IN-STATE COLLEGE TUITION FOR CHILDREN OF ILLEGAL IMMIGRANTS.

>> IF YOU SAY THAT WE SHOULD NOT EDUCATE CHILDREN WHO HAVE COME INTO OUR STATE FOR NO OTHER REASON THAN THEY'VE BEEN BROUGHT THERE BY NO FAULT OF THEIR OWN, I DON'T THINK YOU HAVE A HEART.

>> Reporter: FORMER PENNSYLVANIA SENATOR RICK SANTORUM JUMPED ON THAT REMARK.

>> THE POINT IS, WHY ARE WE SUBSIDIZING? NOT THAT THEY CAN'T GO. THEY CAN GO. THEY JUST HAVE TO BORROW MONEY, FIND OTHER SOURCES TO BE ABLE TO GO. AND WHY SHOULD THEY BE GIVEN PREFERENTIAL TREATMENT AS AN ILLEGAL IN THIS COUNTRY? THAT'S WHAT WE'RE SAYING. AND SO, YES, I WOULD SAY THAT HE IS SOFT ON ILLEGAL IMMIGRATION.

>> Reporter: AT TODAY'S FOLLOW- UP GATHERING OF THE CONSERVATIVE POLITICAL ACTION CONFERENCE, ALSO IN ORLANDO. IT WAS PERRY'S IMMIGRATION STANCE THAT ROMNEY SEIZED ON.

>> MY FRIEND GOVERNOR PERRY SAID THAT IF YOU DON'T AGREE WITH HIS POSITION ON GIVING THAT IN STATE TUITION TO ILLEGALS, THAT YOU DON'T HAVE A HEART. I THINK IF YOU'RE OPPOSED TO ILLEGAL IMMIGRATION, IT DOESN'T MEAN THAT YOU DON'T HAVE A HEART. IT MEANS THAT YOU HAVE A HEART AND A BRAIN.

>> Reporter: FOR HIS PART TODAY, A STILL FEISTY PERRY URGED REPUBLICANS TO FOCUS NOT ON STAGE PERFORMANCE BUT ON CORE BELIEFS.

>> AS CONSERVATIVES, WE KNOW THAT VALUES AND VISION MATTER. IT'S NOT WHO IS THE SLICKEST CANDIDATE, OR THE SMOOTHEST DEBATER THAT WE NEED TO ELECT. WE NEED TO ELECT THE CANDIDATE WITH THE BEST RECORD AND THE BEST VISION FOR THIS COUNTRY.

>> Reporter: CONSERVATIVE STALWARTS LIKE FREEDOMWORKS CHAIR, DICK ARMEY, ACKNOWLEDGED PERRY HAD A TOUGH NIGHT, BUT SAID THERE WAS PLENTY OF TIME FOR HIS FELLOW TEXAN TO BOUNCE BACK.

>> EVERYBODY CAN COME BACK FROM ONE BAD DEBATE. WHEN IT COMES TO THE ISSUES, LIKE SOCIAL SECURITY, PERRY STANDS ON SOLID GROUND. THE ICE BENEATH HIM MAY HAVE GOT A LITTLE THIN LAST NIGHT, BUT THAT CAN SOLIDIFY AGAIN.

>> Reporter: PERRY WILL GET HIS CHANCE AS THE REPUBLICAN HOPEFULS MEET AGAIN IN THREE WEEKS-- OCTOBER 11-- FOR A DEBATE IN NEW HAMPSHIRE.

>> Lehrer: FOR MORE, JUDY WOODRUFF JOINS US NOW FROM ORLANDO.

>> JUDY, YOU'VE BEEN TALKING TO REPUBLICANS AND FORS ALL DAY TODAY. IS THERE A CONSENSUS ON PERRY'S PERFORMANCE.

>> Woodruff: JIM, HI, YES, THE CONSENSUS IS IT WAS NOT HIS BEST NIGHT, WHETHER IT WAS FOLKS WHO LIKED OTHER CANDIDATES AND WERE INCLINED NOT TO LIKE RICK PERRY'S PERFORMANCE ANYWAY, OR PEOPLE WHO WERE SUPPORTING RICK PERRY. THEY ACKNOWLEDGED IT WAS NOT A GOOD NIGHT FOR HIM AND YOU HEARD SOME OF THAT IN THE EXCERPT WE JUST PLAYED WHERE HE WANTED TO MAKE THE POINT ABOUT THE FLIP-FLOPPING THAT HE ALLEGED MITT ROMNEY IS GUILTY OF. HE DIDN'T QUITE MAKE THE POINT AS HE WANTED TO OR SIMPLY BECAUSE HE TAKES POSITIONS THAT THE CROWD DIDN'T LIKE, AS ON IMMIGRATION, WANTING TO GIVE FAVORABLE TUITION, COLLEGE TUITION TO CHILDREN UPON ILLEGAL IMMIGRANTS IN TEXAS. THE CONSENSUS IS HE'S HAD BETTER NIGHTS.

>> Lehrer: DO YOU HAVE A FEELING IT MATTERS THAT MUCH, THAT HIS PERFORMANCE IN THESE DEBATES IS REALLY THAT IMPORTANT TO PEOPLE WHO ARE REAL BELIEVERS?

>> Woodruff: WELL, ON THE ONE HAND, YES. I MEAN, ALL OF THESE DEBATES MATTER TO SOME EXTENT. CERTAINLY A BIG AUDIENCE LAST NIGHT HERE IN FLORIDA, ACROSS THE STATE, ON TELEVISION, AND THE NATIONAL AUDIENCE. BUT ON THE OTHER HAND, I THINK YOU HAVE TO KEEP IN PERSPECTIVE THE BIG BOGEYMAN FOR THIS CROWD OF REPUBLICANS IS PRESIDENT OBAMA, THE BIGGEST APPLAUSE LINES LAST NIGHT WERE NOT CRITICISM OF RICK PERRY BUT CRITICISMS OF PRESIDENT OBAMA. SO, YOU KNOW,ON THE ONE HAND, WHILE RICK PERRY COULD HAVE DONE BETTER, I THINK EVERYBODY I TALKED TO SAID, LOOK, IF HE CAN COME BACK IN THREE WEEKS AT THE NEXT DEBATE, TURN IN A REALLY STRONG PERFORMANCE, HE CAN GET THE MOMENTUM TURNING BACK IN HIS DIRECTION AGAIN.

>> Lehrer: WHAT APPEARS TO BE THE DIVIDING LINES BETWEEN PERRY SUPPORTERS AND ROMNEY SUPPORTERS IN THIS GROUP?

>> Woodruff: TWO VERY DIFFERENT GROUPS OF PEOPLE SUPPORTING THESE MEN, JIM. I MEAN, THEY LOOK AT RICK PERRY, THEY SEE A RED-BLOOD CONSERVATIVE, SOMEBODY WHO GREW UP POOR IN THE STATE OF TEXAS. HE INVOKES HIS BACKGROUND GROWING UP AS A COTTON FARMER. IN FACT, TODAY HE TALKED ABOUT "I WASN'T BORN WITH FOUR ACES, "CLEARLY A REFERENCE TO ROMNEY. ON THE OTHER HAND, ROMNEY HASS A MAINSTREAM MORE MODERATE REPUBLICAN. HE IS RUNNING A MORE DISCIPLINED CAMPAIGN BUT YOU DON'T SEE THE KIND PASSION AMONG ROMNEY SUPPORTERS THAT YOU COAMONG PERRY SUPPORTERS, EVEN AFTER LAST NIGHT'S PERFORMANCES. ROMNEY SUPPORTERS, YOU KNOW, THEY LOOK AT HIM, THEY SEE SOMEBODY WHO THEY THINK IS ELECTABLE, SOMEBODY WHO THEY THINK CAN GO THE DISTANCE AND BEAT BARACK OBAMA AND THAT'S WHAT THEY'RE FOCUSED ON.

>> Lehrer: WERE THERE ANY OTHER OF THE NINE WHO CANDY OF ROSE TO A SEMITOP-TIER CATEGORY OR WAS IT ALL PERRY AND ROMNEY?

>> Woodruff: IT'S AN INTERESTING QUESTION, JIM, BECAUSE A FEW WEEKS AGO, ONE WOULD HAVE SAID MICHELLE BACHMANN. SHE WAS THE ONE WHO WAS NOT JUST BECAUSE SHE WON THE STRAW POLL IN IOWA BUT BECAUSE SHE WAS TURNING IN SOME PRETTY IMPRESSIVE DEBATE PERFORMANCES. BUT FOR THE LAST FEW CONTESTS WHERE SHE'S BEEN ON STATION THE STAGE WITH THESE OTHER MEN, ALL MEN, IT SEEMS SHE'S ALMOST FADED INTO THE BACKGROUND AND SOME SAY THAT'S BECAUSE SHE HAST GOTTEN AS MANY QUESTIONS, OTHERS HAD OTHER THEORIES. LAST NIGHT I WOULD SAY THE CANDIDATE WHO ROSE AND GOT ALMOST AS MUCH ATTENTION AS ROMNEY AND PERRY WAS RICK SANTORUM THE FORMER SENATOR FROM PENNSYLVANIA HELP YOU HEARD IN THAT CLIP HE'S THE ONE WHO REALLY TOOK IT TO RICK PERRY ON TEXAS, ON HIS ILLIGRATION POLI POLICY. SO I THINK RICK SANTORUM, AND YOU HEAR A LOT OF CONCERN ABOUT HECKAN KANE. THEY JUST LIKE HIM. WHO KNOWS HOW FAR HIS CAMPAIGN WILL GO BUT HE HAS A LOT FANS.

>> Lehrer: FINALLY, JUDY, QUICKLY, IS THERE ANY QUESTION THAT ALL OF THESE FOLKS HERE, ALL REPUBLICANS, REALLY SEE FLORIDA AS VERY IMPORTANT, NOT ONLY TO THE NOMINATION RACE BUT MAYBE EVENTUALLY TO THE RACE FOR PRESIDENT ITSELF?

>> Woodruff: YOU PUT YOUR FINGER ON IT, JIM. FLORIDA WANTS TO BE EARLY NEXT YEAR IN FEBRUARY. THEY ALREADY HAVE A DATE IN MIND AND WHEN FLORIDA'S PRIMARY HAPPENS IT WILL BE AT THAT POINT THE STATE WITH THE BIGGEST NUMBER OF DELEGATES AT STAKE. THEY WOULD BE VERY BIG IN GENERAL ELECTION. FLORIDA WENT REPUBLICAN IN 2000, AS WE KNOW, IT WENT FOR OBAMA IN 2008. SO THIS IS A BATTLEGROUND STATE, COULDN'T BE MORE IMPORTANT. REPUBLICANS HERE ARE FIRED UP, AND YOU CAN HEAR SOME OF THAT BEHIND ME.

>> Lehrer: OKAY, JUDY, THANK YOU VERY MUCH.

>> Woodruff: THANK YOU, JIM.

>> Lehrer: AND TO THE ANALYSIS OF SHIELDS AND BROOKS, SYNDICATED COLUMNIST MARK SHIELDS AND "NEW YORK TIMES" COLUMNIST DAVID BROOKS. MARK, WHAT DID YOU THINK OF THE REPUBLICAN DEBATE?

>> I THOUGHT, JIM, THAT IT WAS NOT A GOOD NIGHT FOR RICK PERRY, WHO--

>> Lehrer: SO YOU AGREE WITH THE REPUBLICAN CONSENSUS.

>> YES, AND I THINK JUDY'S OWN REPORTING DOWN THERE. I'D SAY THIS-- RICK PERRY IS AT AN ENORMOUS DISADVANTAGE. USUALLY A CANDIDATE WHEN HE STARTS OUT OR SHE STARTS OUT RUNNING FOR PRESIDENT, YOU CAN SPEND TIME AT THE LION'S CLUB OR ROTARY CLUB, POLISHING YOUR LINES, GETTING READY, KIND OF GOING THROUGH A SHAKE-DOWN CRUISE AND BOOT CAMP. HE PLUNGED RIGHT INTO IT, AND HE HAD NOT, OBVIOUSLY, THOUGHT ABOUT RUNNING FOR PRESIDENT SINCE HE WAS A SOPHOMORE IN HIGH SCHOOL, LIKE MOST OF THESE PEOPLE HAVE. OTHERWISE HE WOULDN'T HAVE WRITTEN THAT BOOK LAST YEAR. SO KNOW-- AND HE NOT ONLY ENTERED IN A HURRY, HE ENTERED RIGHT AT THE TOP SPOT. HE GOT INTENSE SCRUTINY COMING IN. AND I THINK IT SHOWS.

>> Lehrer: DO YOU AGREE, THAT'S THE PROBLEM, HE JUST DIDN'T-- HE WASN'T READY TO BE FRONT-RUNNER?

>> YEAR, HE'S HAD SOME TIME TO STUDY UP AND HE DOES HAVE A STAFF. THEY PREPARED HIM. AND IT HASN'T BEEN ONE DEBATE. IT'S BEEN THREE CONSECUTIVE DEBATES WHERE HE'S BEEN SUCCESSIVELY BAD. HE TEND TO BE GOOD IN THE FIRST 20 MINUTES, AND THEN HE LOOKS LIKE HE NEEDS A POWER SHAKE BECAUSE HE RUNS OUT OF STEAM AND IT GETS WORSE AND WORSE. THIS TIME HE HURT HIMSELF NOONLY BY BEING INARTICULATE AND UNCLEAR BUT BY SAYING THINGS ABOUT ILLEGAL IMMIGRATION, PAYING TUITION FOR KIDS OF ILLEGAL IMMIGRANTS THAT WILL HURT AND OFFEND HIM WITH SOME PEOPLE. THE SECOND THING TO BE SAID IS ROMNEY IS PHENOMENALLY BETTER THAN HE WAS FOUR YEARS AGO, AND THERE MARK SAID IN THE INVERSE-- HE'S BEEN RUNNING FOR FIVE YEARS. NOT ONLY DOES HE KNOW WHAT TO SAY, BUT THERE'S A SORT OF CALMNESS, AND HE HAS THE ABILITY TO THINK MORE QUICKLY ON HIS FEET. EVEN LAST NIGHT WHEN HE HAD A CHANCE TO CALL OBAMA SOCIALIST, AND MAYBE OFFEND GENERAL ELECTION VOTERS, AND ONE OF THE BIG SURPRISES IS HOW GOOD ROMNEY IS.

>> Lehrer: DO YOU AGREE?

>> ROMNEY IS GOOD. ROMNEY, DAVID SAID FIVE YEARS. I'D SAY EIGHT YEARS HE'S BEEN RUNNING, AND HE NEVER STOPPED RUN, AND HIS BOOK, IN CONTRAST TO PERRY'S BOOK-- THIS IS WHAT I BELIEVE, I HATE WASHINGTON, IS PERRY'S BOOK. ROMNEY'S IS TESTED. IT'S FOCUS GROUP TESTED, SO HE CAN QUOTE LINES. IT WAS INTENDED AS A CAMPAIGN DOCUMENT AND IT IS A CAMPAIGN DOCUMENT. I WOULD AGREE WITH DAVID THAT ROMNEY'S HAD THREE GOOD DEBATES. I REMEMBER IN 2008 THE BUZISLAMIC WORD WAS AUTHENTICITY. PEOPLE WERE LOOKING FOR AUTHENTICITY. AND I THINK BOTH McCAIN AND OBAMA IN SEPARATE WAYS REPRESENTED WHAT VOTERS WERE LOOKING FOR IN AUTHENTICITY IN 2008. I THINK THAT COULD BE A PROBLEM WITH ROMNEY. THERE'S A LACK OF SPONTANEITY. IT IS VERY WELL REHEARSED. IT'S VERY WELL POLISHED. THE OTHER THING THAT WAS MISSING IN THIS THAT STRUCK ME, JIM, IS THAT THIS IS A DIFFERENT REPUBLICAN PARTY. FROM GEORGE BUSH'S. GEORGE BUB RAN FOR PRESIDENT AS THE GOVERNOR OF TEXAS, TRUMPETING THE FACT HE HAD GOTTEN 50% OF THE LATINO VOTE WHEN HE RAN FOR REELECTION IN 1998 AND CALLING FOR NO CHILD LEFT BEHIND, A FEDERAL EFFORT TO RAISE EDUCATION, PUBLIC EDUCATION STANDARDS. THE ONE COMPASSIONATE CONSERVATIVE ON THAT STAGE LAST NIGHT WAS RICK PERRY WHEN HE TALKED ABOUT THE DAUGHTER OF AN UNDOCUMENTED IMMIGRANT WHO WORKED HER WAY THROUGH SCHOOL WHILE HER MOTHER MIGHT HAVE BEEN WORKING IN A NURSING HOME, AND SHE GOT-- QUALIFIED TO GET INTO THE UNIVERSITY, AND MITT ROMNEY, WHO WAS BORN INTO THE LAP OF LUXURY SAYS HOW YOU CAN POSSIBLY GIVE THIS AWAY, $100,000 SCHOLARSHIP, TO THIS ILLEGAL ALIEN? AND I JUST-- BOY, I THOUGHT A MEANNESS CAME THROUGH IN THAT DEBATE THAT WAS UPAPPEALING.

>> Lehrer: YOU SEE MEANNESS?

>> NO, I THINK-- I MEAN, THE PARTY REALLY DOES NOT LIKE ILLEGAL IMMIGRATION, AND THEY DON'T WANT-- THEY DON'T FEEL PEOPLE WHO ARE MAYBE MAKING $40,000 A YEAR SHOULD BE SUBSIDIZING-- AND WHO CAN'T AFFORD COLLEGE-- SHOULD BE SUBSIDIZE KIDS WHO CAME HERE ILLEGALLY-- THEIR FAMILIES CAME HERE ILLEGALLY. THAT'S MAYBE NOT MY ENTIRE VIEW BUT I CAN SEE THE POINT OF VIEW. BIG QUESTION MARK RAISES IS HOW DIFFERENT IS THE REPUBLICAN PARTY? CLEARLY THE PEOPLE SHOWING UP AT THESE THINGS ARE DIFFERENT. CLEARLY THE REPUBLICAN PARTY HAS MOVED SOMEWHAT TO THE RIGHT. THEY'RE SOMEWHAT ANGRY AT THE WAY THE COUNTRY IS GOING BUT IS IT THAT MUCH DIFFERENT THAN THE PARTY THAT NOMINATED BOB DOLE, JOHN McCAIN, GEORGE BUSH, GEORGE H.W. IF YOU LOOK AT THE POLLING IN NEW HAMPSHIRE, FOR EXAMPLE, I THINK PERRY IS FIFTH. HE'S NOT EXACTLY CATCHING ON UP THERE. PEOPLE WHO ARE PAYING ATTENTION NOW ARE PRETTY ANGRY. WHAT ABOUT THE PEOPLE WHO START PAYING ATTENTION LAST MINUTE? I SUSPECT THEY'LL BE A LITTLE MORE ROMNEY FRIENDLY.

>> Lehrer: I WAS GOING TO ASK YOU ABOUT JUDY'S POINT, THE PEOPLE WHO SUPPORT ROMNEY-- AT LEAST IN ORLANDO IT'S PEOPLE WHO SUPPORT ROMNEY DO ON THE BASE OF HIS ELECTABILITY. THEY'RE RUNNING AGAINST BARACK OBAMA. THEY DON'T THINK RICK PERRY CAN DO IT. MAYBE ROMNEY CAN. DO YOU THINK THERE'S VALIDITY TO THAT?

>> YOU FEEL IT IN EVERY CROWD. THEY WANT PERRY TO WIN, AND IF THEY'RE GOING TO GO ROMNEY IT WILL NOT BE OUT OF PASSION. ONE OF THE OTHER THINGS GOING ON IS HOW MUCH WILL DEBATES MATTER VERSUS COMMERCIALS. PERRY CAME OUT WITH A COMMERCIAL THIS WEEK WHICH I THOUGHT WAS PHENOMENALLY GOOD. IT WAS TAKE THE OBAMA MISSION ACCOMPLISH SPEECH, I TAKE CREDIT FOR THE ECONOMY, AND IT HAS PERRY BEING ULTRA-PATRIOTIC. MAYBE WE'RE IN THE DAY AND AGE WHERE COMMERCIALS TRUMP DEBATES.

>> I THINK VOTERS-- I THINK DEBATES DO MATTER BECAUSE THEY FEEL THEN, RIGHTLY OR WRONGLY, FEEL THEY'RE SEEING THE CANDIDATES UNFILTERED.

>> Lehrer: AND THEY'RE SEEING THEM SIDE BY SIDE.

>> SIDE BY SIDE IN A PRESSURED SITUATION, UNREHEARSED SITUATION. I AGREE WITH YOU. THE THING THAT STRUCK ME ABOUT THE PERRY COMMERCIAL WAS THE HOPE. THERE WAS OPTIMISM IN IT, AND OPTIMISM IS IN SHORT SUPPLY RIGHT NOW.

>> Lehrer: WHAT ABOUT THE IDEA THAT NEITHER-- NONE OF THE ABOVE IS BEGINNING TO COME BACK? BILL KRYSTAL DID A SPECIAL EDITORIAL TO THE "WEEKLY STANDARD" TODAY, HE DIDN'T LIKE EITHER ONE OF THESE GUYS AND WANTS CHRISTIE, AND JEB BUSH ISN'T COMING, AND MITCH DANIELS WON'T RUN, MAYBE CHRISTIE OF NEW JERSEY WILL COME BECAUSE HE'S-- NONE OF THESE PEOPLE CAN WIN. DO YOU THINK THAT'S GOING TO GO ANYWHERE OR IS THIS THE-- IS THIS THE FIELD? IS IT LIKE TAKE IT OR LEAVE IT, FRIENDS?

>> I DON'T THINK IT'S TOO LATE FOR SOMEBODY TO GET IN.

>> Lehrer: YOU DON'T THINK?

>> I DON'T. GIVEN THE DYNAMICS WE'RE OPERATE ON. LOOK WHAT PERRY DID.

>> Lehrer: OUT OF NOWHERE.

>> OUT OF NOWHERE, YEAH. I DO THINK, JIM, THAT'S A CRY THAT CONTINUES EVERY FOUR YEARS. THIS IS A LOUSY CHOICE. WE COULD DO BETTER. WHERE'S THE JEFFERSON? WHERE'S THE LINCOLN? WHERE'S KENNEDY? WHERE'S THE REAGAN? AND SOMEHOW WHOEVER GOES THROUGH THAT PROCESS AND EMERGES AT THE OTHER END WE FIND IN HIM VIRTUES HIS MOTHER IGNORED.

>> AND LATE ENTRANTS LIKE PERRY AND FRED THOMPSON DO NOT DO WELL. WHEN YOU ASKED REPUBLICAN PRIMARY VOTERS ARE YOU SATISFIED WITH THE FIELD THERE HAS BEEN A SHARP UPTICK IN PEOPLE WHO ARE SATISFIED WITH THE FIELD. BILL, HIS VIEW, SHARED BY A THE LOVE PEOPLE, BUT MORE REPUBLICANS ARE SAYING THIS IS OUR FIELD. WE'RE FINE WITH IT.

>> Lehrer: LET'S GO TO THE TWO VOTES IN CONGRESS. YESTERDAY IN THE HOUSE AND THIS MORNING IN THE SENATE ABOUT-- WELL, THE BOTTOM LINE IS ARE WE GOING TO HAVE ANOTHER "SHUT DOWN THE GOVERNMENT" CRISIS?

>> I LOOK AT HISTORY AND I ASSUME THAT WE WILL JUST DO JUST ENOUGH TO STAY STAGNANT AND MISERABLE. WE NEVER SEEM TO SOLVE OUR PROBLEMS BUT WE NEVER QUITE WALK OFF THE PRECIPICE. SO I'M GOING TO ASSUME THAT'S GOING TO HAPPEN AGAIN. YOU KNOW, SUBSTANTIVELY, I DISAGREE WITH BOTH PARTIES. I DON'T THINK WE SHOULD OFFSET OUR DISASTER SPENDING WITH CUTS ELSEWHERE. I DON'T PARTICULARLY THINK WE SHOULD DO CORPORATE WELFARE FOR ELECTRIC CARS, EITHER. THE MAIN TAKEAWAY IS THE WHOLE WORLD IS IN A VERY PRECARIOUS SITUATION, EUROPE IS SLIDING OFF THE EDGE OF A CLIFF, OUR ECONOMY LOOKING LIKE IT MAY GO THROUGH A DOUBLE DIP AND THEY'RE FIGHTING OVER THIS STUFF. IT'S JUST UNNERVING.

>> Lehrer: MARK, IT RAISE THE QUESTION, YOU, WHAT IS IT ABOUT-- THAT'S GOING ON IN THIS COUNTRY THAT THE MEMBERS OF CONGRESS DON'T UNDERSTAND AND DON'T UNDERSTAND THE POLLS THAT SHOW, WHAT, 82% UNFAVORABLE, AND THEY'RE STILL PLAYING THE SAME GAMES LIKE NOTHING HAS HAPPENED. WHY? WHAT IS IT THEY DON'T GET? AND IT'S BOTH REPUBLICANS AND DEMOCRATS IN THIS CASE.

>> I THINK THEY CAME BACK CHASTENED AND SEVERE DEFENSIVE AFTER THE AUGUST RECESS BECAUSE AFTER THE SHOWDOWN ON THE DEBT CEILING BEING RAISED, BOTH SIDES WERE HURT. BOTH ENDS OF PEN PEP AVENUE. THE WHITE HOUSE WAS HURT. THE CONGRESS WAS HURT. INSTITUTIONALLY, POLITICALLY, ACROSS THE BOARD. THIS IS INTERESTING. I MEAN, THIS REALLY IS-- WE VOTED LITERALLY, HUNDREDS OF BILLIONS OF DOLLARS TO REBUILD IRAQ AND AFGHANISTAN. AND THIS IS YOU'RE TALKING ABOUT CAPITOL HILL 7 TRILLION TO REBUILD, IN FACT, THE STORM-RAVAGED UNITED STATES. AND I THINK-- I THINK THE DEMOCRATS, QUITE HONESTLY, PART OF THIS IS THE CHEMISTRY-- THEY'VE BEEN ROLLED, THEY FEEL, ON EVERY SHOWDOWN. I MEAN, STARTING LAST DECEMBER, IN APRIL, AND IN AUGUST, AND THERE WAS SORT OF A-- I CAN'T SAY MANHOOD BECAUSE THAT'S NO LONGER AN APPROPRIATE TERM-- BUT THERE'S A SENSE WE HAVE TO EARN AND STAND UP AND WE'RE NOT GOING TO TAKE IT ANY LONGER.

>> Lehrer: HOW TOUGH WE ARE.

>> IT WILL BE A SHOWDOWN EYE AGREE WITH DAVID THERE WILL NOT BE A SHUTDOWN.

>> Lehrer: SO-- BUT WHAT IS THE SHOWDOWN ABOUT NOW? I MEAN IS IT STILL ABOUT LITTLE THINGS? THEY'RE NOT HAVING A SHOWDOWN ABOUT ANYTHING LARGE, ARE THEY?

>> IT'S PAVLOV DOG TIME. IT'S WE CAN DO THINGS. WE'RE FIGHTING FOR YOU GUYS, OUR BASE. AND RIGHT NOW, BOTH BASES ARE FEELING PRETTY GOOD, ACTUALLY. SOME OF US ARE LEFT OUT, BUT OBAMA CAME OUT, TAX INCREASES FOR THE RICH. LIBERALS ARE FEELING PRETTY GOOD. THE REPUBLICANS SAYING WE'RE NOT DOING BUSINESS AS USUAL. WE'RE GOING TO SHUT THINGS DOWN. CONSERVATIVES FEELING PRETTY GOOD. WHETHER WE'RE ACTUALLY GOVERNING, THAT'S ANOTHER QUESTION. I DO THINK IT'S A COMBINATION OF THAT AND THE MINUSCULENESS OF WHAT THEY'RE TRYING TO DO IS JUST A FUNCTION OF BEING STUCK IN A LITTLE PRESSURE ZONE IN WASHINGTON.

>> Lehrer: AND THAT'S GOING TO CONTINUE.

>> YEAH, I MEAN, I THINK THAT FEMA IS GOING TO RUN OUT OF MONEY, I THINK IT'S A LEGITIMATE PLACE TO MAKE A STAND. BUT I DO THINK THAT THERE IS AN AWARENESS THAT THIS DOES NOT LOOK GOOD IN THE COUNTRY AND AT SOME POINT THAT IT COULD LEAD IN FACT TO JUST A SURGE ON THE PART OF VOTERS AGAINST INCUMBENTS IN BOTH PARTIES.

>> Lehrer: AND THAT WOULD, OF COURSE, AFFECT ANYTHING THE REPUBLICANS DO IN TERMS OF NOMINATING THEIR CANDIDATE. THAT PUSH, WHETHER IT'S ROMNEY OR RICK PERRY OR WHOEVER, GETS SOME MOMENTUM ON THAT ONE, DON'T THEY?

>> EVERY ANTI-INCUMBENT. AND THERE ARE PEOPLE TALKING, AS MARK SAID, SOME CONSULTANTS SAYING WE'RE USED TO TIDAL WAVES GOING AGAINST ONE PARTY OR ANOTHER. IT'S RARE TO SEE A WAVE AGAINST BOTH PARTIES AT A TIME.

>> Lehrer: THANK YOU VERY MUCH.

>> Suarez: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: PALESTINIAN PRESIDENT ABBAS ASKED THE UNITED NATIONS TO ACCEPT HIS NATION AS A MEMBER STATE. STOCK MARKETS ON BOTH SIDES OF THE ATLANTIC RECOUPED A LITTLE OF THEIR LOSSES, BUT FOR THE WEEK, WALL STREET WAS DOWN SHARPLY. AND PRESIDENT OBAMA ANNOUNCED THE EDUCATION DEPARTMENT WILL LET STATES OPT OUT OF KEY REQUIREMENTS OF THE "NO CHILD LEFT BEHIND LAW." AND TO KWAME HOLMAN FOR WHAT'S ON THE "NEWSHOUR" ONLINE. KWAME?

>> Holman: THE CONVERSATION CONTINUES WITH SHIELDS AND BROOKS ON THE RUNDOWN BLOG. EUROPEAN RESEARCHERS UNCOVERED EVIDENCE THIS WEEK THAT SOME SUBATOMIC PARTICLES MAY MOVE FASTER THAN THE SPEED OF LIGHT. OUR SCIENCE UNIT ASKED A PHYSICIST IF THAT SHATTERS LONG- HELD PHYSICS PRINCIPLES. PLUS ON "ART BEAT," JEFF TALKS TO CONDUCTOR, COMPOSER AND NEW MacARTHUR GENIUS GRANT AWARDEE FRANCISCO NUNEZ. HE'S THE ARTISTIC DIRECTOR OF THE YOUNG PEOPLE'S CHORUS, AN AFTER-SCHOOL PROGRAM IN NEW YORK CITY. ALL THAT AND MORE IS ON OUR WEB SITE: newshour.pbs.org. RAY?

>> Suarez: AND THAT'S THE "NEWSHOUR" FOR TONIGHT. ON MONDAY, WE'LL LOOK AT THE PARTISAN DIVIDE OVER DISASTER AID AND FEDERAL SPENDING, ONCE AGAIN THREATENING A GOVERNMENT SHUTDOWN. I'M RAY SUAREZ.

>> Lehrer: AND I'M JIM LEHRER. "WASHINGTON WEEK" CAN BE SEEN LATER THIS EVENING ON MOST PBS STATIONS. WE'LL SEE YOU ONLINE AND AGAIN HERE MONDAY EVENING. HAVE A NICE WEEKEND. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY: ♪ ♪ MOVING OUR ECONOMY FOR 160 YEARS. BNSF, THE ENGINE THAT CONNECTS US.

>> AND BY THE BILL AND MELINDA GATES FOUNDATION. DEDICATED TO THE IDEA THAT ALL PEOPLE DESERVE THE CHANCE TO LIVE A HEALTHY PRODUCTIVE LIFE. 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

>> WELL IT IS MUCH CALMER, BUT I'M NOT SO SURE IT'S ANY LESS CAUTIOUS THAN IT WAS YESTERDAY. I THINK THE LAST TWO DAYS HAVE BEEN QUITE A SHOCK TO THE SYSTEM

>> Susie: WALL STREET WRAPS UP ITS ROUGHEST WEEK SINCE THE HEIGHT OF THE FINANCIAL CRISIS.