PBS NewsHour; October 27, 2011 6:00pm-7:00pm PDT

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Brown: GLOBAL MARKETS SURGED TODAY, AFTER EUROPEAN LEADERS CLINCHED A DEAL TO CONTAIN THE CONTINENT'S DEBT CRISIS. GOOD EVENING, I'M JEFFREY BROWN.

>> Warner: AND I'M MARGARET WARNER. ON THE "NEWSHOUR" TONIGHT, WE ASSESS THE AGREEMENT AND THE LINGERING QUESTIONS FOR EUROPE AND BEYOND.

>> Brown: THEN, WE GET AN UPDATE ON THE FLOODS IN THAILAND, WHERE RISING WATERS HAVE FORCED THOUSANDS TO FLEE THE CAPITAL, BANGKOK.

>> THIS WITH THE MEAN FORCE GETTING OUT BUT THE CITY'S BUS STATIONS, PASSENGERS CUED IN THE BLISTERING HEAT AND AT THIS STATION, THE CONCOURSE WAS PACKED.

>> Warner: WE LOOK AT THE CHALLENGES AHEAD FOR NETFLIX, AFTER BUSINESS MISSTEPS AND A CHANGING MARKET DRIVE CUSTOMERS AWAY AND SEND ITS STOCK PLUMMETING.

>> Brown: HARI SREENIVASAN EXPLORES THE CONSEQUENCES OF A DEMOGRAPHIC MILESTONE, AS THE WORLD'S POPULATION SURGES PAST SEVEN BILLION.

>> Warner: AND TOM BEARDEN PROFILES A COMBAT PHOTOGRAPHER WHO HAS DOCUMENTED THE IMPACT OF WAR AND PAID A HEAVY PRICE.

>> AIR FORCE VETERANS IS STILL SUFFERING FROM THE INJURY SHE RECEIVED FOUR YEARS AGO, BOTH PHYSICALLY AND MENTALLY

>> Brown: THAT'S ALL AHEAD ON TONIGHT'S "NEWSHOUR." MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> OIL COMPANIES MAKE HUGE PROFITS.

>> LAST YEAR, CHEVRON MADE A LOT OF MONEY.

>> WHERE DOES IT GO?

>> EVERY PENNY AND MORE WENT INTO BRINGING ENERGY TO THE WORLD.

>> THE ECONOMY IS TOUGH RIGHT NOW, EVERYWHERE.

>> WE PUMPED $21 BILLION INTO LOCAL ECONOMIES, INTO SMALL BUSINESSES, COMMUNITIES, EQUIPMENT, MATERIALS.

>> THAT MONEY COULD MAKE A BIG DIFFERENCE TO A LOT OF PEOPLE.

>> COMPUTING SURROUNDS US. SOMETIMES IT'S OBVIOUS AND SOMETIMES IT'S VERY SURPRISING WHERE YOU FIND IT. SOON, COMPUTING INTELLIGENCE IN UNEXPECTED PLACES WILL CHANGE OUR LIVES IN TRULY PROFOUND WAYS. TECHNOLOGY CAN PROVIDE CUSTOMIZED EXPERIENCES, TAILORED TO INDIVIDUAL CONSUMER PREFERENCES, IGNITING A WORLD OF POSSIBILITIES FROM THE INSIDE OUT. SPONSORING TOMORROW, STARTS TODAY. AND 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.

>> Brown: STOCKS RALLIED AROUND THE WORLD TODAY, AFTER NEWS OF A DEBT CRISIS DEAL IN EUROPE. EUROPEAN EXCHANGES WERE UP AS MUCH AS 6%. AND ON WALL STREET THE DOW JONES INDUSTRIAL AVERAGE SOARED 339 POINTS NEARLY 3% TO CLOSE AT 12,208. THE NASDAQ ROSE NEARLY 88 POINTS TO CLOSE AT 2,738. INVESTORS EVERYWHERE WERE CARRIED FORWARD BY THE LONG- AWAITED ANNOUNCEMENTS FROM BRUSSELS. IT WAS THE DIPLOMATIC VERSION OF AN ALL-NIGHTER AND LEADERS OF THE 17 EURO-ZONE NATIONS EMERGED EARLY THIS MORNING DECLARING SUCCESS. GERMAN CHANCELLOR ANGELA MERKEL IS HEAD OF EUROPE'S LARGEST ECONOMY.

>> ( translated ): I DO BELIEVE THAT WE WERE ABLE TO LIVE UP TO EXPECTATIONS, THAT WE DID THE RIGHT THING FOR THE EUROZONE, AND THIS BRINGS US ONE STEP FURTHER ALONG THE ROAD TOWARDS A GOOD AND SENSIBLE SOLUTION. I ALWAYS SAID THAT WE WOULD NOT BE ABLE TO DO THIS OVERNIGHT BUT THIS NOW BRINGS US TO STABILITY AND A STABLE CURRENCY UNION.

>> Brown: GREECE'S HUGE DEBTS, ALONG WITH SHAKY ECONOMIES IN PORTUGAL, ITALY, AND SPAIN HAVE ALL CONTRIBUTED TO FEARS THAT THE EURO SYSTEM COULD COLLAPSE, AND TRIGGER A NEW, GLOBAL RECESSION. THE AGREEMENT HAS THREE MAIN COMPONENTS. FIRST, EUROPEAN BANKS WILL TAKE A SO-CALLED "HAIRCUT"-- VOLUNTARILY WRITING OFF 50% OF WHAT THEY'RE OWED BY GREECE. THAT COMES TO SOME $139 BILLION. THE LEADERS ALSO ASKED THAT BANKS RE-CAPITALIZE BY ADDING NEARLY $150 BILLION TO THEIR RESERVES. THE GOAL IS TO INSULATE THEM FROM POTENTIAL DEFAULTS BY NATIONAL GOVERNMENTS. AND THE AGREEMENT SEEKS TO INCREASE THE EUROZONE BAILOUT FUND TO $1.4 TRILLION, MORE THAN DOUBLE ITS CURRENT SIZE. THERE WAS LITTLE DETAIL ON HOW ALL OF THAT WOULD BE ACCOMPLISHED. BUT FRENCH PRESIDENT NICOLAS SARKOZY SAID THE PLAN ADDRESSED ONE OF HIS PRIMARY CONCERNS:

>> ( translated ): WE HAVE A AS FRANCE HAS BEEN ASKING FROM THE BEGINNING, WE HAVE EXCLUDED THE POSSIBILITY OF A GREEK DEFAULT. THE PRIVATE SECTOR HAS WRITTEN OFF HALF OF THE DEBT THAT IT HOLDS.

>> Brown: THE NEW FRAMEWORK WAS OF PARTICULAR RELIEF TO GREEK PRIME MINISTER GEORGE PAPANDREOU, WHOSE COUNTRY HAS BEEN TEETERING ON THE BRINK OF DEFAULT, DESPITE $150 BILLION IN RESCUE LOANS:

>> ( translated ): I THINK WE MANAGED TO ESCAPE FROM THIS TRAP. THE FACT THAT WE ARE STILL HERE TODAY IS A BIG ACHIEVEMENT FOR THE GREEK PEOPLE. SO TODAY I THINK WE CAN CLOSE A CHAPTER ON THE PAST AND I THINK THAT NOW WE WILL START WITH ALL OUR STRENGTH TO BEGIN WORK FOR A NEW FUTURE FOR OUR COUNTRY.

>> Brown: AND IN WASHINGTON, PRESIDENT OBAMA CALLED THE AGREEMENT AN IMPORTANT FIRST STEP.

>> WE'VE SEEN THE MESSAGE THEY ARE GOING TO DEAL WITH THIS IN A SERIOUS WAY HAS CALMED MARKETS ALL AROUND WORLD. IT WILL HELP LAY THE PREDICATE FOR LONG TERM ECONOMIC GROWTH NOT ONLY IN EUROPE, AROUND WORLD. THE KEY NOW IS TO MAKE SURE IMPLEMENTED FULLY AND DECISIVELY AND I HAVE GREAT CONFIDENCE IN EUROPEAN LEADERSHIP TO MAKE THAT HAPPEN.

>> Brown: AND IN WASHINGTON, BUT NOT EVERYONE IN EUROPE SHARED THE OPTIMISM. THERE WERE WARNINGS IN GREECE, WHERE AUSTERITY MEASURES HAVE ALREADY TRIGGERED SOMETIMES VIOLENT PROTESTS.

>> THERE'S ABSOLUTELY NOTHING IN THE PACKAGE THAT WAS AGREED THAT GIVES US EVEN A MODICUM OF HOPE, THAT ANYTHING ALONG THE LINES OF, ALONG DEVELOPMENTAL LINES, IS HAPPENING.

>> Brown: CONCERNS ALSO LINGER FOR ITALY-- THE CONTINENT'S THIRD LARGEST ECONOMY. PRIME MINISTER SILVIO BERLUSCONI HAS BEEN UNDER PRESSURE TO DEAL WITH HIS COUNTRY'S HEAVY INDEBTEDNESS. AND BERLUSCONI DID, IN FACT, PRESENT AN HASTILY CONSTRUCTED PACKAGE OF REFORMS IN BRUSSELS.

>> ( translated ): THE GUARANTEE IS THAT IF WE DON'T RESPECT OUR COMMITMENTS, WE WON'T BE CREDIBLE ANY MORE. THEY ARE COMMITMENTS AND WE HAVE ASSUMED RESPONSIBILITY FOR THEM AND ITALY WILL THIS TIME AGAIN RESPECT ITS COMMITMENTS, AS IT ALWAYS DID.

>> Brown: STILL, THERE ARE LINGERING QUESTIONS ABOUT BERLUSCONI'S ABILITY TO IMPLEMENT HIS PLAN. AND TODAY, ITALY'S LARGEST TRADE UNION VOWED TO FIGHT IT. WE LOOK AT THE MIX OF EXCITEMENT AND CONTINUING WORRIES NOW, WITH JOAO VALE DE ALMEIDA, THE EUROPEAN UNION AMBASSADOR TO THE UNITED STATES. AND ESWAR PRASAD, CORNELL UNIVERSITY ECONOMIST AND A FELLOW AT THE BROOKINGS INSTITUTION. HE PREVIOUSLY WORKED AT THE I.M.F.

>> AMBASSADOR IF SOME WAYS WE HAVE BEEN HERE BEFORE WITH GRAND ANNOUNCEMENTS, THE MARKET GOES UP AND THEN A FEW DAYS LATER DISAPPOINTMENT. WHY IS THIS DIFFERENT?

>> I THINK THIS IS DIFFERENT. WE HAVE FOR THE FIRST TIME A COMPREHENSIVE PLAN, ONE THAT GOES VERY FAR IN ADDRESSING SHORT-TERM ISSUES, AS MUCH AS LONGER-TERM ISSUES. I THINK WE ARE DEALING EFFECTIVELY WAY GREEK PROBLEM AND AVOIDING A CONTAGION EFFECT TO OUR COUNTRIES. WE ARE INVOLVING THE PRIVATE SECTOR, THE BANKING SECTOR. THEY HAVE RESPONSIBILITIES IN FINDING SOLUTIONS AND THEY ARE CONTRIBUTING TO THE SOLUTION.

>> AND WE ARE, YOU KNOW, CREATING MORE FIREPOWER FOR OUR CRISIS MECHANISMS, BEING ABLE TO DEAL WITH THE PRESENT SITUATIONS BUT ALSO WITH POTENTIALLY FUTURE SITUATIONS.

>> Brown: THERE HAS BEEN A SENSE AND EVEN A FEAR AROUND THE WORLD THAT EUROPE WAS IN-- SOME IN EUROPE WERE IN A STATE OF DENIAL. NOT FACING UP TO THE SCOPE OF THE PROBLEM. NOT DEALING WITH SOME OF THE COMPREHENSIVE MEASURES WHERE NEEDED. DO YOU SENSE A SHIFT IN THAT REGARD?

>> ABSOLUTELY. I THINK THERE'S A SENSE OF MOMENTUM, A SENSE OF URGENCY. YOU HAVE TO UNDERSTAND THAT WHEN PEOPLE SORT OF CRITICIZE THE EUROPEAN UNION FOR BEING SLOW AND CHREX, WE ARE NOT A COUNTRY. WE ARE 27 COUNTRIES. IN EUROPE, 17 COUNTRIES. VERY DIVERSE, THAT REQUIRE YOU KNOW, DISCUSSION SO THAT WE GET TO CONSENSUS. IT'S COMPLEX, SOMETIME, THE MARKETS WOULD LIKE US TO MOVE FASTER. MAYBE SOMETIMES THE AMERICANS WITH WOULD LIKE TO US MOVE FASTER.

>> Brown: I THINK A FEW TIMES.

>> I THINK THE IMPORTANT POINT HERE TODAY, AND THIS IS A GOOD DAY FOR EUROPE AS I THINK IT IS A GOOD DAY FORTH U.S. AND FOR THE WORLD ECONOMY, THAT OUR LEADERS CAME TO A SET OF MEASURES AND INITIATIVES THAT WILL BE FAR-REACHING.

>> Brown: ESWAR PRACTISE AD, TAKE NICE SOME OF THE DETAILS. WE SAID SOME OF THE DETAILS ARE NOT WELL-KNOWN. THE QUESTION FOR THE RESCUE FUND, FOR EXAMPLE, WHAT JUMPS OUT AT YOU. WHAT DOW LIKE AND WHAT DOW STILL WONDER ABOUT.

>> FIRST OF ALL, I THINK THIS IS A VERY PROMISING THING IN THAT EUROPE IS FACIAL UP TO HARSH REALITIES IN A CONCERTED WAY AND THIS ALL SOUNDS VERY GOOD. BECAUSE IT IS IN A SENSE A VERY COMPREHENSIVE MEASURE DEALING WITH THE BANK, DOLING WITH GREECE, DEALING WITH LONG-TERM GOVERNANCE PROBLEMS BUT THE DETAILS WILL BE THE PROBLEM. SO ONE THINK APPROXIMATES ABOUT BANK RECAPITALIZATION, THERE WAS A SENSE THAT BANKS MAY NEED SOMEWHERE BETWEEN $100 BILLION EUROS AND $300 BILLION EUROS, WHY? BECAUSE A LOT OF CAPITAL THAT THEY HOLD IS IN THE FORM OF DEBT OF THESE ECONOMIES THAT ARE IN TROUBLE. SO ONCE THERE WAS SOME MARK DOWN TO MARKET VAL URK THE BANKS NEED SOME MORE CAPITAL. THERE IS A SENSE 100 BILLION EUROS MAY VERY MUCH BE AT THE LOW END OF THE AMOUNT THE BANKS NEED. THEN THERE IS THE EUROPEAN FINANCIAL STABILITY FACILITY, WHICH IS SUPPOSED BE-- .

>> Brown: THE RESCUE FUND.

>> THE RESCUE FUND. NOW THE CRITICAL THING TO NOTICE THAT THERE IS NO MONEY ADDED TO THE RESCUE FUND. BUT WHAT HAS BEEN DECIDED IS THAT THE EFSF MONEY CAN BE USED IN A WAY TO LEVERAGE UP WHATEVER MONEY IT HAS. AND THE HOPE IS THAT THE MONEY COULD BE USED TO BASICALLY GUARANTEE THE FIRST ROUND OF LOSSES THAT PRIVATE INVESTORS MAY TAKE IF THEY WERE TO BUY NEW DEBT SO IF AN INVESTOR, SAY AN OFFICIAL GOVERNMENT OR A PRIVATE INVESTOR WERE TO BUY NEW ITALIAN DEBT AND THEN THERES WITH A DEFAULT ON THAT DEBT, THEN A CERTAIN PROPORTION OF THAT, MAYBE 20, 25% WOULD BE COVERED BY THE FSF. NOW IS THIS GOING TO BE ENOUGH TO DRAW INVESTORS IN, EITHER PRIVATE OR SO OF EARN THAT IS THE BIG QUESTION.

>> Brown: LET ME ASK YOU WHAT IS NOTABLE, GOVERNMENTS AREN'T COMMITTING TO PUT MORE MONEY IN. SO IN REALITY, CAN A BAILOUT FUND BE THERE AND BE ENOUGH IF SOMETHING HAPPENS?

>> I THINK IT CAN. AND THE REACTION OF THE MARKETS AND I'VE BEEN TALKING TO SOME INVESTORS THROUGHOUT THE DAY AND PEOPLE REPRESENTING THE MARKET FORCES, THEY SEEM TO BE-- THEY SEEM TO CONSIDER THIS AS A VERY PROMISING AND VERY IMPORTANT PACKAGE. LET ME SAY SOMETHING. IN TIMES OF DIFFICULTY, AND WE ALL ARE IN DIFFICULT TIMES FINANCIALLY, ECONOMIC, EVEN SOCIALLY, ONE NEEDS TO BE CREATIVE. AND I THINK WHAT THIS SET OF MEASURES REVEALS IS ALSO A SEARCH FOR CREATIVE MECHANISMS TO MAXIMIZE THE FIREPOWER THAT WE HAVE AT OUR DISPOSAL TODAY. AND THAT'S WHAT WE HAVE DONE AROUND THE FACILITY, THE EUROPEAN FACILITY. WE ARE, YOU KNOW, LEVERAGING BY FOUR OR FIVE TIMES WITH THE MONEY THAT WE HAVE PUT THERE BEFORE. SO WE NEED TO BE CREATIVE. WE NEED TO INVOLVE THE PRIVATE SECTOR. AND MANY PEOPLE IN THE UNITED STATES TALK ABOUT THE ROLE OF BANKS. I THINK OUR LEADERS WERE SEEKING A VALID, LEGITIMATE AND BALANCED CONTRIBUTION OF THE BANKING SECTOR TO THIS PARTICULAR PROBLEM. AND THE PROPOSAL IS ON THE TABLE AIMED AT THAT.

>> Brown: SPEAK OF BANKS THE OTHER PART OF THIS AS WE SAID IS THE SO-CALLED HAIRCUT TO-- REGARDING GREECE. NOW IS THAT, HOW WOULD THAT WORK. IT'S CALL A VOLUNTARY HAIRCUT. WHAT DOES THAT MEAN AND WILL IT WORK?

>> NOW THERE ARE TWO ASPECTS TO WHETHER IT WILL WORK. THE FIRST QUESTION IS WHETHER IT WILL WORK FOR GREECE. NOW THE PRESUMPTION IS THAT IN FACT IF PRIVATE BONDHOLDERS ARE GETTING ONLY 50 CENTS ON THE DOLLAR. AND BONDS ARE ALREADY TRADING AT DOLLARS LESS THAN FULL VALUE. THE QUESTION IS WHETHER THAT'S GOING TO BE ENOUGH TO GET GREECE OUT OF THIS MESS. AND EVEN IF GREECE DELIVERS A LOT OF PRIVATIZATION REVENUES, ABOUT $100 BILLION, EVEN IF GREECE IMPLEMENTS ITS FISCAL RESTRUCTURING, GREECE WILL STILL BE LEFT WITH ABOUT 120% OF GDP DEBT IN 2020.

>> Brown: STILL QUITE A LOT.

>> IS THIS GOING TO BE SUSTAINABLE? PROBABLY NOT.

>> Brown: THE QUESTION IS WHETHER THIS JUST POSTPONED THE PROBLEM.

>> YES. AND FOR BANKS THERE IS ANOTHER PROBLEM WHICH IS THAT THEY ARE BEING ASKED TO RAISE CAPITAL AT A TIME WHEN IT'S VERY DIFFICULT TO RAISE CAPITAL. PLUS THERE IS THE NOTION THAT THERE MIGHT BE MORE-- DOWN THE ROAD NOT JUST ON GREEK DEBT BUT PERHAPS ON THE DEBTS OF OTHER EUROPEAN COUNTRIES. SO BANKS NATURALLY ENOUGH MAY BE IN A ROLE OF CONSERVING CASH. AND CONSERVING CASH MEANS LENDING LESS, LENDING LESS TO HOUSE HOLDS, TO CORPORATIONS, WHICH COULD AFFECT THE EUROPEAN ECONOMIC GROWTH.

>> Brown: WHAT ABOUT THE POLITICAL QUESTION HERE THAT LURKS ALWAYS, IS THE SENSE THAT EUROPEAN VOTERS ARE NOT INTERESTED IN THESE BAILOUTS ANY MORE. THAT THEY DON'T WANT TO HELP OTHER COUNTRIES, THAT THEY ARE TIRED AT THIS POINT OF BEING ASKED TO PUT OUT MORE MONEY. THIS AGREEMENT DOESN'T REALLY ADDRESS THAT, DOES IT.

>> I THINK WHAT VOTERS WANT IN EUROPE IS GROWTH AND JOBS. STABILITY AND SECURITY FOR THEIR FAMILIES. THAT'S WHAT WE'RE LOOKING FOR AND THINK THIS IS WHAT THEY WANT IN THE WEST AS WELL. SO WE WERE FACED WITH THE SITUATION OF EMERGENCY, IN EUROPE. YOU KNOW, DIFFICULT THES IN SOME COUNTRY AFFECTING THE WHOLE SYSTEM, RISKING BRINGING DOWN THE WHOLE EURO AREA TO A VERY DIFFICULT SITUATION.

>> Brown: YOU THINK IT'S CLOSE TO THAT OR CAME CLOSE --.

>> I THINK WE SHOULD NOT BE COMPLACENT ABOUT THE CRISIS. WE WERE IN A DIFFICULT SITUATION. SO WHEN ARE YOU IN A DIFFICULT SITUATION, YOU HAVE TO THINK OF THE ALTERNATIVES. WHAT ARE THE ALTERNATIVES. THE ALTERNATIVES TO THE KIND OF MEASURES WE ARE TAKING NOW WERE MUCH MORE COSTLY FOR EVERYBODY, INCLUDING THOSE WHO WERE ALREADY IN DIFFICULT SITUATIONS. SO I THINK, I DON'T THINK THAT THE LEADERS WILL GO THIS WAY IF THEY DIDN'T KNOW THAT THEY COULD EVENTUALLY COUNT ON THE SUPPORT OF THE ELECTORATE. AND YOU KNOW, WE'RE TO THE TALKING MUCH ABOUT THAT. BUT TOGETHER WITH THE MEASURES THAT WE HAVE BEEN DESCRIBING HERE, THERE WERE A NUMBER OF INITIATIVES AIMING AT ENHANCING GROWTH IN EUROPE. WE HAVE TO KEEP ON REFORMING OUR ECONOMIES. WE HAVE TO KEEP ON REFORMING OUR LABOR MARKET, PUBLIC FINANCES, PENSION SYSTEMS AND ALL OF THIS IS PART OF THE PACKAGE, RIGHT. WHEN WE SUPPORT GREECE OR PORTUGAL OR ISLAND, WE ARE PUTTING ON THE TABLE VERY STRICT CONDITIONS. WE HOPE OTHER COUNTRIES THAT ARE NOT BEING SUPPORTED TO DO THE SAME. AND THIS IS ALL PART OF THE, YOU KNOW, GROWTH-ANNOUNCING MEASURES THAT WE'RE TAKING AT THE SAME TIME AS WE DECIDE WHERE WE ARE DESCRIBING.

>> Brown: AMBASSADORS GENTLEMANAO VAIL DEALMEIDA AND ESWAR PRASAD, THANK YOU VERY MUCH.

>> THANK YOU.

>> Warner: STILL TO COME ON THE "NEWSHOUR": THE EXODUS FROM BANGKOK AS FLOODWATERS RISE; TROUBLED TIMES FOR NETFLIX; POPULATION SEVEN BILLION AND COUNTING AND WAR THROUGH THE LENS OF A COMBAT PHOTOGRAPHER. BUT FIRST, THE OTHER NEWS OF THE DAY. HERE'S KWAME HOLMAN.

>> Holman: THE U.S. ECONOMY SHOWED JUST ENOUGH LIFE DURING THE SUMMER TO CALM FEARS THAT A DOUBLE-DIP RECESSION IS NEAR. THE COMMERCE DEPARTMENT REPORTED TODAY THAT GROWTH HIT AN ANNUAL RATE OF 2.5% FROM JULY THROUGH SEPTEMBER. IT WAS THE BEST PERFORMANCE IN A YEAR, BUT THE GROWTH RATE WOULD HAVE TO BE NEARLY TWICE AS HIGH TO BRING DOWN UNEMPLOYMENT. REPUBLICANS ON THE DEFICIT SUPER-COMMITTEE IN CONGRESS OFFERED THEIR PLAN TODAY. THEY CALLED FOR REDUCING RED INK BY $2.2 TRILLION OVER TEN YEARS IN PART BY CUTTING MEDICARE COSTS, BUT WITHOUT RAISING TAXES. HOUSE DEMOCRATIC LEADER NANCY PELOSI QUICKLY DISMISSED THE PROPOSAL.

>> THAT DOESN'T SOUND LIKE ANYTHING THAT WOULD EVEN BE IN THE LEAGUE WITH WHAT THE BIPARTISAN COMMISSION, GANG OF SIX, ANY OF THE OTHER INITIATIVES PUT FORTH. EVERYBODY HAS SAID, BE CAREFUL HOW YOU CUT AND WHEN YOU CUT BECAUSE YOU MAY DESTROY THE MOMENTUM FOR ECONOMIC GROWTH THAT WE NEED TO HAVE AS WE GO FORWARD.

>> Holman: THE HOUSE SPEAKER-- REPUBLICAN JOHN BOEHNER-- ANSWERED SOME DEMOCRATS' CALLS FOR $1.3 TRILLION IN HIGHER TAXES IS OUT OF BOUNDS. BUT BOEHNER SAID HE WANTS A DEAL.

>> I'VE HAD LOTS OF CONVERSATIONS. I'M NOT SURPRISED THAT WE'RE HAVING SOME DIFFICULTY. THIS ISN'T EASY. I DO THINK IT'S TIME FOR EVERYBODY TO GET SERIOUS ABOUT THIS.

>> Holman: THE DEFICIT SUPERCOMMITTEE HAS UNTIL NOVEMBER 23 TO RECOMMEND DEFICIT SAVINGS OF AT LEAST $1.2 TRILLION. IF IT FAILS, AUTOMATIC CUTS WOULD KICK IN. THE HOUSE CAME TOGETHER TODAY TO REPEAL A LAW DESIGNED TO ENSURE THAT GOVERNMENT CONTRACTORS PAY THEIR TAXES. IT CALLED FOR FEDERAL, STATE AND LOCAL AGENCIES TO WITHHOLD 3% OF PAYMENTS TO CONTRACTORS. LAWMAKERS ON BOTH SIDES SAID IT'S MORE IMPORTANT NOW TO LET COMPANIES KEEP THAT MONEY TO HIRE NEW WORKERS. THE COST OF MEDICARE'S BASIC MONTHLY PREMIUM IS GOING UP, BUT NOT BY AS MUCH AS EXPECTED. THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ANNOUNCED TODAY THAT THE PART "B" PREMIUM FOR OUTPATIENT CARE WILL BE JUST LESS THAN $100 A MONTH FOR 2012. THAT'S AN INCREASE OF $3.50, INSTEAD OF THE MORE THAN $10 THAT WAS FORECAST. THE SEARCH FOR EARTHQUAKE VICTIMS IN TURKEY YIELDED MORE BODIES TODAY AND ANOTHER SURVIVOR, FOUR DAYS AFTER THE QUAKE HIT. A YOUNG MAN WAS PULLED ALIVE FROM THE RUBBLE, AND RESCUERS CARRIED HIM AWAY FROM THE DEBRIS. ONE OF THEM DESCRIBED HOW THEY FOUND THE MAN.

>> ( translated ): WE HAD JUST ABOUT LOST HOPE. WE HAD SENT IN THE CANINE TEAMS AND LISTENING DEVICES BUT COULDN'T HEAR ANYTHING. JUST AS WE WERE ABOUT TO START RECOVERY OPERATIONS WE HEARD A SOUND. THEN WE STARTED LOOKING AND THANK GOD WE WERE SUCCESSFUL.

>> Holman: OFFICIALS SAID THE LIKELIHOOD OF FINDING MORE SURVIVORS WAS DWINDLING, AS THE DEATH TOLL REACHED 534. IN IRAQ, TWIN BOMBINGS KILLED 18 PEOPLE IN NORTHEASTERN BAGHDAD. AT LEAST 36 OTHERS WERE WOUNDED. THE ATTACK BEGAN WITH A BLAST OUTSIDE A MUSIC STORE IN THE CITY'S U.R. DISTRICT-- A MOSTLY SHI-ITE NEIGHBORHOOD. THE SECOND BOMB EXPLODED AS RESCUERS RUSHED TO THE SCENE. THERE WAS NO IMMEDIATE CLAIM OF RESPONSIBILITY. THE U.N. SECURITY COUNCIL HAS VOTED TO LIFT ITS NO-FLY ZONE OVER LIBYA AS OF MONDAY. THE UNANIMOUS VOTE TODAY ALSO ENDED U.N. AUTHORIZATION OF THE NATO BOMBING CAMPAIGN IN LIBYA. THE REBEL COUNCIL NOW RULING LIBYA DECLARED THE COUNTRY LIBERATED LAST SUNDAY. THAT WAS THREE DAYS AFTER FORMER DICTATOR MOAMMAR QADDAFI WAS CAUGHT AND KILLED. EGYPT AND ISRAEL COMPLETED A PRISONER SWAP TODAY. THE EGYPTIANS RELEASED A U.S.- ISRAELI CITIZEN, WHO'D BEEN HELD FOR FOUR MONTHS. 27-YEAR-OLD ILAN GRAPEL LANDED THIS EVENING OUTSIDE TEL AVIV, WHERE HIS AMERICAN MOTHER WAS WAITING. GRAPEL HAD BEEN ACCUSED OF SPYING FOR ISRAEL-- A CHARGE HE DENIED. ISRAEL IN TURN RELEASED 25 EGYPTIANS, MOST OF THEM ACCUSED SMUGGLERS. THEY RETURNED TO EGYPT BY BUS AND WERE GREETED WITH FLOWER WREATHS AND FLAGS. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO MARGARET.

>> Warner: THE HEART OF BANGKOK, THAILAND BRACED FOR AN INUNDATION OF FLOODWATERS TODAY. THE PRIME MINISTER ACKNOWLEDGED THE DIKES AROUND THE CITY MAY NOT HOLD. JOHN SPARKS OF "INDEPENDENT TELEVISION NEWS" REPORTS FROM BANGKOK.

>> THE SCOURGE OF THE COUNTRYSIDE HAS ENTERED THE CITY. AND ROLLED RIGHT UP TO THE PALACE GATES. FLOODWATERS FROM THE NORTH HAVE FURTHERED THEIR ADVANCE AND NOTHING AND NO ONE IS SACRED. THE CITY'S SOPHISTICATED RESIDENTS GOT THEIR FEET WET THIS MORNING. AN UNPLEASANT SURPRISE FROM AN UNWELCOME GUEST.

>> IT CAME UP REALLY FAR. IT WAS DRY EARLY THIS MORNING. NOW THE WHOLE STREET IS FLOODED.

>> Reporter: 23 OF BANGKOK'S 50 DISTRICTS HAVE NOW SUCCUMBED TO THE WATERS. THEIR STREETS FILLED WITH WADERS AND IMPROVISED RAFTS. AND ARMY TRUCKS PACKED WITH EVACUEES. 50,000 TROOPS HAVE BEEN MOVED INTO THE CITY. BUT THAILAND'S ARMY CHIEF TOLD US IT'S NOT ENOUGH.

>> MANY PEOPLE ARE SUFFERING AND WE'RE DOING WHAT WE CAN. BUT THE MOST IMPORTANT THING TO SAY IS THAT THE PEOPLE WILL HAVE TO BE PATIENT.

>> Reporter: SHE SAYS SHE'S DOING HER BEST. THE COUNTRY'S INEXPERIENCED PRIME MINISTER YINGLUCK SHINAWATRA CONFERRING WITH ADVISORS THIS MORNING. LATER SHE APPEARED SHAKEN AND CLOSE TO TEARS. A REPORTER ASKED, ARE YOU CRYING? >>.

>> SHE DENIED IT. NO, I HAVEN'T CRIED AT ALL, SHE REPLIED. TODAY MARKED THE FIRST OF A FIVE DAY SPECIAL HOLIDAY HERE. THIS AN OPPORTUNITY TO ESCAPE. THE GOVERNMENT HAS URGED RESIDENTS TO LEAVE THE CITY. THEY CAN'T DEPART FROM BANGKOK'S SECOND AIRPORT, HOWEVER. DON JUAN INTERNATIONAL HAS BEEN FLOODED OUT. UNLESS YOU'VE GOT ACCESS TO A LARGE TRUCK, YOU WON'T GET THROUGH THE FRONT ENTRANCE. AND I CAN TELL YOU THAT THE RUNWAYS AREN'T MUCH BETTER EITHER. IN TERMINAL THREE, THAT'S WHERE THE GOVERNMENT HAS ITS EMERGENCY RESPONSE CENTER. IN RETROSPECT, NOT THE BEST PLACE TO PUT IT. MEMBERS OF VARIOUS GOVERNMENT MINISTRIES NOW DEALING WITH THE CRISIS ARE HAVING TROUBLE GETTING HERE. THIS A PRACTICAL PROBLEM IN A PSYCHOLOGICAL BLOW. AND WHAT ABOUT FOREIGN NATIONALS, TOURISTS? WHAT DOES THE THAI GOVERNMENT SUGGEST THEY DO?

>> WHAT THE TOURISTS, I SUGGEST THAT THAILAND IS STILL BE THE GOOD DESTINATION BUT NOT IN BANGKOK RIGHT NOW.

>> SO GO TO THE BEACH.

>> PLEASE, OR UP HILL. (LAUGHTER)

>> Reporter: ALL ROADS LEADING UP HILL TODAY WERE JAMMED. THOSE WITH THE MEANS WERE GETTING OUT. BUT THE CITY-- AT THE CITY'S BUS STAYSES PASSENGERED CUED IN THE BLISTERING HEAT AND AT THE STATION, THE CONCOURSE WAS PACKED. EVEN THE MONKS HAD TO SHOVE OVER.

>> I HAVE BEEN TOLD ABOUT AN HOUR AGO WE WERE FINE WALKING AROUND THE STREETS AND ALL OF A SUDDEN WE SAW SOME OF THE FLOODING AND I THINK THAT'S WHAT MADE US NERVOUS.

>> YOU THOUGHT RIGHT. WE'RE GETTING OUT OF HERE.

>> EXACTLY.

>> IT'S PROBABLY A WISE DECISION. THE SITUATION IS NOW CRITICAL SAY OFFICIALS. WITH MORE WATER AND HIGH TIDES EXPECTED THIS WEEKEND. THE FLOODS HAVE KILLED

>> Brown: THE FLOODS HAVE KILLED NEARLY 400 PEOPLE AND DISPLACED MORE THAN 100,000 OTHERS. IT'S THE HEAVIEST FLOODING IN THAILAND IN MORE THAN HALF A CENTURY.

>> Warner: NOW, NETFLIX STUMBLES BADLY AND ITS COMPETITORS SEE AN OPPORTUNITY IN A FAST-CHANGING MEDIA AND ENTERTAINMENT LANDSCAPE.

>> Warner: IN RECENT YEARS, NETFLIX'S FAMILIAR RED ENVELOPES -- DELIVERING D.V.D.s BY MAIL-- SYMBOLIZED A COMPANY ON THE RISE WITH AN EVER-EXPANDING CUSTOMER BASE. BUT LATE MONDAY, THE COMPANY ANNOUNCED THAT IT HAD LOST 800,000 SUBSCRIBERS-- 3% OF ITS CUSTOMERS-- BETWEEN JUNE AND SEPTEMBER. THE NEXT DAY, NETFLIX STOCK PLUMMETED 35%, TO $77 A SHARE. IT HAD BEEN $304 IN JULY. THAT MEANS THE COMPANY HAS LOST THREE QUARTERS OF ITS MARKET VALUE-- SOME $9 BILLION IN JUST THREE MONTHS. THE TROUBLE STARTED WHEN NETFLIX ANNOUNCED A MAJOR CHANGE TO ITS RENTAL SYSTEM IN JULY. NO LONGER WOULD ITS DVD CUSTOMERS ALSO RECEIVE ONLINE VIDEO FOR A MODEST $2 A MONTH ADD-ON CHARGE. THOSE WHO WANTED BOTH SERVICES WOULD HAVE TO PAY $16 A MONTH-- A HIKE OF 60%. THERE WAS AN ANGRY OUTCRY FOLLOWED ON THE INTERNET AND MANY CUSTOMERS THREATENED TO CANCEL THEIR ACCOUNTS. IN SEPTEMBER, IN A WEB VIDEO, COMPANY C.E.O. REED HASTINGS APOLOGIZED FOR THE CLUMSY WAY NETFLIX HAD HANDLED THE PRICE HIKE. BUT HE SAID THE D.V.D. BY MAIL SERVICE WOULD BE SPUN OFF AND RENAMED QWIKSTER, WITH ITS OWN WEB ORDERING SITE AND SEPARATE BILLING.

>> WHEN WE COMMUNICATED THAT TO OUR SUBSCRIBERS AND IT INVOLVES A SUBSTANTIAL PRICE INCREASE, I DIDN'T MAKE THE COMMUNICATION, AND WE DIDN'T EXPLAIN WHY WE WE'RE DOING IT. OVER TIME BOTH DVD AND STREAMING WILL BE MUCH BETTER, BECAUSE THEY'RE SEPARATE. AND IN FACT, WE THINK THAT THE DVD SERVICE NEEDS IT'S OWN BRAND, SO WE CAN ADVERTISE IT, SO WE'VE NAMED IT QWIKSTER.

>> Warner: THEN, AFTER ANOTHER CUSTOMER OUTCRY, ON OCTOBER 10TH, THE COMPANY SAID IT WAS ABANDONING PLANS FOR THE SEPARATE SERVICES. NOW, WITH SOME CONSUMERS TURNING AWAY FROM WATCHING TELEVISION, NETFLIX FACES GROWING COMPETITION IN THE ONLINE STREAMING MARKET. ONLINE RETAILER amazon.com, AND THE COUNTRY'S LARGEST RETAILER WALMART HAVE ROLLED OUT MOVIE STREAMING SERVICES. CUSTOMERS ALSO CAN BUY OR RENT ONLINE MOVIES AND TV SHOWS FROM APPLE'S iTUNES. AND HULU OFFERS FREE ONLINE VIEWING OF RECENT T.V. SHOW EPISODES. STILL, WITH NEARLY 24 MILLION U.S. SUBSCRIBERS, NETFLIX REMAINS THE DOMINANT PLAYER IN THIS MARKET. FOR MORE ON NETFLIX AND PROSPECTS FOR ITS COMPETITORS, WE TURN TO ERIC SCHUMACHER- RASMUSSEN, THE EDITOR OF streamingmedia.com, A WEBSITE AND COMPANY THAT CLOSELY MONITORS DEVELOPMENTS IN THE ONLINE VIDEO INDUSTRY. AND CECILIA KANG, A TECHNOLOGY REPORTER FOR THE "WASHINGTON POST." CECILIA, BEGINNING WITH YOU, NETFLIX ONLY LOST 3% OF ITS CUSTOMER BASE. WHY WOULD IT STOCK ABSOLUTELY TANK LIKE THIS?

>> WELL, I THINK THE PROBLEM WITH NETFLIX OR THE LACK OF CONFIDENCE THAT THESE DECISIONS HAD ON THE COMPANY AND ITS SUBSEQUENT STOCK THAW HAD TO DO WITH THE FACT THAT THE COMPANY WAS RISING SO QUICKLY AND GROWING ITS CUSTOMER BASE SO QUICKLY BECAUSE THE STORY OF NETFLIX WAS OF A COMPANY THAT REALLY GOT ITS CUSTOMERS AND REALLY UNDERSTOOD CONSUMERS. AND THEN IT MADE THESE SERIES OF DECISIONS THAT REALLY SHOWED THAT IT ONE DECISION AFTER ANOTHER REALLY WASN'T LISTENING TO ITS CONSUMERS. IT MIGHT HAVE BEEN WORKING TOO FAST IN MAKING BUSINESS DECISIONS AND TECHNOLOGICAL CHANGES. THAT CONSUMERS REALLY WEREN'T READY FOR. AND SO THAT SIGNALED A BIGGER LACK OF CONFIDENCE FOR INVESTORS IN THE STOCK MARKET AND THAT'S WHAT REALLY LEAD TO THE DECLINE. THIS IS A COMPANY THAT WAS KNOWN FOR MAKING YOUR LIFE EASIER, NO LATE FEES, CHEAPER SERVICE, ALTERNATIVE TO CABLE. AND SUDDENLY IT SEEMED LIKE IT WAS GOING BACK ON ALL IT STOOD FOR.

>> Warner: SO ERIC RASMUSSEN, DO YOU AGREE WITH THIS, THAT IT WAS REALLY A LACK OF CONFIDENCE IN NETFLIX'S ABILITY TO BE IN TWO TUNE WITH ITS CONSUMERS? IT WAS A LOT MORE THAN LOSING 3 PERCENT OF THEIR SUBSCRIBERS.

>> YEAH, ABSOLUTELY. I MEAN THIS IS SOMETHING THAT HAS BEEN BUILDING UP AS YOU SAID SINCE JULY. AND NETFLIX AS YOU SAID, YOU KNOW, MADE ITS NAME BY MAKING LIFE EASY FOR ITS CONSUMERS. BUT IT ALSO ACHIEVED A GREAT DEVELOP ITS SUCCESS AT LEAST IN THE ON-LINE VIDEO WORLD BY BEING -- BY DEFAULT THE ONLY GAME IN TOWN. AND IF NOT THE ONLY GAME IN TOWN THE EASIEST GAME IN TOWN. WHEN STREAMING VIDEO STREAMING MOVIES TO YOUR COMPUTER OR YOUR LAPTOP OR EVEN YOUR TELEVISION WAS EASY AND WHEN IT WAS INCLUDED IN THE SUBSCRIPTION FEE OR JUST A COUPLE OF BUCKS MORE IT WAS EASY AND PEOPLE DIDN'T CARE TOO MUCH THAT ONLY A RELATIVELY SMALL NUMBER OF TITLE MRS. AVAILABLE. ONCE NETFLIX DECIDED IT WAS GOING TO CHARGE MORE AND DID A PRETTY POOR JOB OF EXPLAINING WHY, THEN PEOPLE LOOKED AT THEIR BILL, LOOKED AT THE MOVIES THAT WERE AVAILABLE AND DECIDED TO EITHER MAKE A CHOICE BETWEEN GETTING DVDs OR WATCHING ON-LINE, OR DITCHING NETFLIX ENTIRELY.

>> Warner: SO WHAT DOES THIS HUE AND CRY, CECILIA, TELL US ABOUT HOW PEOPLE WANT THEIR CONTENT DELIVERED? YOU SAID YOU THOUGHT MAYBE NETFLIX, WELL, GO AHEAD, JUST ANSWER THAT.

>> SURE. I THINK PEOPLE WANT CHOICE. I THINK PEOPLE WANT CHOICE. THEY WANT LOWER COST. THEY WANT ALTERNATIVES TO WHAT THEY SEE IS EXPENSIVE MAYBE CABLE OR SATELLITE TELEVISION SERVICE. THEY WANT DIFFERENT OPTIONS. AND WHAT NETFLIX DID FOR MANY YEARS WAS FIRST WITH THEIR DVD MAIL-IN SERVICE AND NOT CHARGING LATE FEES, THEY PRESENTED AN ALTERNATIVE TO THE CORNER DVD RENTAL STORE THAT WAS CHARGING REALLY HIGH RENTAL LATE FEES. THEN WITH THE STREAMING SERVICE THEY REALLY PROVIDED A REAL ALTERNATIVE TO CABLE IN THAT YOU COULD STREAM ON YOUR LAPTOP YOUR GAME CONSOLE, ON YOUR PHONE. AND IN MY HOME WE HAVE MULTIPLE DEVICES STREAMING ALL THE TIME, DIFFERENT VIDEOS. AN ALTERNATIVE TO SPENDING EXTRA MONEY ON TOP OF YOUR INTERNET COSTS AND YOUR CELL PHONE COST. ALL THE DIFFERENT COMMUNICATION SERVICES THAT YOU PAY FOR EVERY MONTH. IT ALLOWS YOU TO TRIM THOSE DOWN A LITTLE BIT AND MAYBE JUST PAY FOR ONLY INTERNET AND YOUR CELL PHONE FOR A LOT OF PEOPLE.

>> SO ERIC SCHUMACHER-RASMUSSEN, DO YOU THINK THAT A MAJORITY OR EVEN A SIGNIFICANTLY GROWING NUMBER OF CONSUMERS REALLY WANT STREAMING VIDEO? I MEAN WHAT DOES THIS WHOLE FURROR TELL YOU.

>> WELL, CONSUMERS DEFINITELY WANT STREAMING VIDEO BUT I THINK THAT THE IMPORTANCE OF IT HAS BEEN OVERHYPED JUST A LITTLE BIT. I LIVE AND BREATHE IN THAT INDUSTRY. BUT EVEN IN THE INDUSTRY IT'S BEEN HYPED A BIT. YOU KNOW, YOU HAVE TO REMEMBER THAT RIGHT NOW NETFLIX IS JUST ONE SERVICE, THERE ARE MANY SERVICES THAT OFFER DIFFERENT TYPES OF STREAMING VIDEO, ON-LINE TELEVISION SHOWS, ON-LINE MOVIES. BUT THEY'RE ALL AVAILABLE ON DIFFERENT DEVICES. THERE'S NO SINGLE DEVICE. NO SINGLE SERVICE THAT OFFERS CONSUMERS EVERYTHING THEY'RE LOOKING FOR. SO AT LEAST AT THE MOMENT THE MARKET IS SO FRAGMENTED IT THAT EVEN THOUGH PEOPLE I DO THINK WANT TO GET THEIR CONTENT STREAMED TO THEM WHETHER IT'S ON THEIR COMPUTERS OR THEIR TVs OR THEIR MOBILE DEVICES, AT THE MOMENT THERE IS TOO MUCH CHOICE, REALLY. IF YOU HAVE A CERTAIN KIND OF TV OR A CERTAIN KIND OF DEVICE YOU CAN GET SOME CONTENT BUT NOT OTHERS. AND ON DOWN THE LINE. SO PHYSICAL THAT'S WORKED OUT, THE DESIRE IS THERE BUT I DON'T KNOW IF REALLY THE MARKET IS THERE YET.

>> NOW WE REED AND HEAR THAT THE COMBINATION OF CABLE TV AND TV THROUGH YOUR PHONE IS ACTUALLY GOING DOWN FOR THE FIRST TIME, STARTED LAST YEAR. IS THAT CONNECTED TO THIS?

>> YOU MEAN THE-- .

>> Warner: WELL, CABLE, SATELLITE-- ALL THE WAYS PEOPLE GET TELEVISION, THE TOTAL NUMBER FOR THE FIRST TIME LAST YEAR DROPPED.

>> ABSOLUTELY. SO WHAT IS HAPPENING. NETFLIX WAS THE FIRST REAL CHALLENGE TO CABLE TV. AS MUCH AS NETFLIX WOULD SAY THAT WE'RE A FRIEND OF THE CABLE TV INDUSTRY THEY REALLY WERE. PEOPLE ARE CUTTING THEIR CABLE SUBSCRIPTIONS ESPECIALLY IN THIS ECONOMY. BECAUSE THEY SEE THAT-- THEY ARE SOWING ALTERNATIVES THAT PRESENT THEMSELVES OVER THEIR iPHONES, THEIR DROIDS, THEIR DIFFERENT DEVICES AND NOW AMAZON IS IN THE RACE AS WELL WITH THEIR KINDL LAPTOP. THE LINDEL TABLET. SO YOU, THIS-- THE KINDLE TAP LET. THIS DEFINITELY PLAYS INTO IT, THERE IS A FIERST BATTLE, PROBABLY ONE OF THE BIGGEST, RICHEST BATTLE, FORTUNES AT STAKE RIGHT NOW ON THE FUTURE OF HOW WE CONSUME OUR MEDIA GOING FORWARD AND WHO ARE GOING TO BE THE PEOPLE WHO CONTROL AND GET THE MOST MONEY OUT OF THAT. IS THAT GOING TO BE HOLLYWOOD, THE DEVICE MAKER, IS IT GOING TO BE THE SOFTWARE MAKERS? MAYBE IT WILL BE COMPANIES THAT HAVE THEIR FINGERS AND TOES IN A LOT OF THOSE SPACES LIKE APPLE AND AMAZON.

>> Warner: SO ERIC SCHUMACHER-RASMUSSEN, IS ANY COMPANY THAT IS OFFERING ON-LINE STREAMING ACTUALLY SELF-SUPPORTING? AND IF SO HOW DO THEY DO IT. IN OTHER WORDS, IS THERE A FINANCIAL MODEL EMERGING THAT IS AN ALTERNATIVE TO THE SUBSCRIBER BASE THAT NETFLIX DOES?

>> NOT AT THE MOMENT, NO. ALL THE SERVICES THAT ARE HAVING ANY DEGREE OF SUCCESS RIGHT NOW WHETHER IT'S AMAZON WITH THE STREAMING THEY OFFER THROUGH AMAZON PRIME OR ON DEMAND OR WHETHER IT'S APPLE WITH iTUNES, THOSE BUSINESSES IN AND OF THEMSELVES ARE NOT SELF-SUPPORTING. HULU FOR INSTANCE IS NOT SUCCESSFUL ENOUGH IT RECENTLY TOOK ITSELF OFF THE AUCTION BLOCK. THEY WERE TRYING TO SELL IT AND ULTIMATELY DECIDED THAT THERE WASN'T ENOUGH INTEREST THERE. SIMPLY BECAUSE THE BUSINESS MODEL ISN'T THERE YET. WE STILL DON'T KNOW WHETHER ADVERTISING OR PAY-PER-VIEW OR SUBSCRIPTION IS GOING TO BE THE WAY THAT PEOPLE WANT TO PAY FOR THEIR ON-LINE VIDEO CONTENT.

>> Warner: SO BOTTOM LINE HERE, CECILIA, IS NETFLIX STILL IN GOOD POSITION TO MOVE FORWARD?

>> SURE. IT'S STILL THE 800 POUND GORILLA IN THIS SPACE. AND THERE AREN'T MANY COMPETITORS THAT ARE DOING EXACTLY WHAT THEY DO. THEY HAVE SUBSCRIBERS THAT ARE STILL VERY LOYAL TO THE COMPANY AS WELL. SO COMPETITION IS ENCROACHING IN THEIR SPACE BUT IN A YEAR WE MIGHT SAY THAT THAT WAS ACTUALLY A GOOD DECISION, THAT THEY ARE MOVING INTO ON-LINE PRURLY BUT MAYBE TOO FAST.

>> WELL, A FUTURE THAT WE DEFINITELY CAN'T FORESEE. CECILIA KANG AND ERIC RASMUSSEN-SCHUMACHER, THANK YOU.

>> Brown: NEXT, A MILESTONE FOR PLANET EARTH. ON MONDAY, THE WORLD'S POPULATION WILL OFFICIALLY REACH SEVEN BILLION. WHAT DOES THAT MEAN FOR PEOPLE AND PLANET? WE BEGIN WITH THIS REPORT FROM LAWRENCE McGINTY OF "INDEPENDENT TELEVISION NEWS."

>> ZACK RYA CAME INTO THE WORLD AT THE ROSIE HOSPITAL IN CAMBRIDGE. AROUND THE WORLD, THREE OTHER BABIES WERE BORN IN THE SAME SECOND. FIRST THE FIGURES. IT TOOK ALL OF HUMAN HISTORY UP TO 1804 FOR THE WORLD'S POPULATION TO REACH 1 BILLION. BUT THE NEXT BILLION CAME ONLY 100 YEARS LATER, IN 1927. AND AFTER THAT, THE RATE OF GROWTH ACCELERATED. 3 BILLION IN 1959. 4 BILLION, 1974. 5 BILLION, 1987. 6 BILLION 1999. AND NOW 7 BILLION. WE'RE ADDING A BILLION POPULATION EVERY 12 YEARS. MOPLATION GROWTH WILL NOT BE EVEN AROUND THE WORLD. IN AFRICA FOR EXAMPLE, THE CURRENT POPULATION OF 1 BILLION WILL INCREASE TO 3.6 BILLION BY THE END OF THE CENTURY. BUT IN ASIA, YES, POPULATION WILL INCREASE FROM ITS CURRENT 4.2 BILLION TO 5.2 BILLION BY 2050. THOUGH BY THE END OF THE CENTURY IT WILL FALL TO 4.6 BILLION. IF YOU GO JUST TWO DECADES AHEAD, ALL THE TRENDS ARE INDICATING THAT WE ARE GOING TO NEED TO BE PRODUCING SOMETHING LIKE 40% MORE FOOD, 40% MORE AVAILABLE FRESH WATER. AND ACTUALLY ABOUT 50% MORE ENERGY. AND REMEMBER THAT'S CLEAN ENERGY. FAMINE IN AFRICA SHOWS HOW HARD FEEDING THE POPULATION WILL BE, THAT ENOUGH FOOD IN THE WORLD TO GO AROUND BUT ALMOST A BILLION PEOPLE ARE UNDERNOURISHED. WATER CONSUMPTION HAS TRIPLED IN THE LAST 50 YEARS AND BY 2020 HALF THE WORLD'S POPULATION WILL LIVE IN AREAS OF HIGH WATER STRESS. CLEAN ENERGY ALSO A TALL ORDER MEETING DEMAND IN THE LAST DECADE RAISED THE CARBON EMISSIONS LINKED TO GLOBAL WARMING BY 25%. AND IF ALL THESE CAN BE TACKLED, THE WORLD WILL FACE A NEW PROBLEM, INCREASING NUMBERS OF ELDERLY PEOPLE OUR SOCIETIES MUST SUPPORT.

>> Brown: HARI SREENIVASAN TAKES THE STORY FROM THERE.

>> Sreenivasan: JUST WHAT ARE THE CONSEQUENCES OF SUCH EXPLOSIVE GROWTH? THE PBS "NEWSHOUR," IN PARTNERSHIP WITH THE PULITZER CENTER AND NATIONAL GEOGRAPHIC HAS BEEN COVERING THAT FOR THE PAST YEAR. WE'VE EXPLORED HOW THE COMPOSITION OF OUR SOCIETY IS CHANGING. WE ARE BECOMING A MORE URBAN POPULATION. MEGACITIES-- THOSE WITH MORE THAN TEN MILLION RESIDENTS-- ARE BOOMING. IN 1975, THERE WERE ONLY THREE SUCH PLACES, NOW THERE ARE MORE THAN 21. FRED DE SAM LAZARO REPORTED FROM NEW DELHI LAST DECEMBER.

>> JYOTI SHARMA, A CONSERVATION ACTIVIST WHO RUNS A SMALL AID AGENCY, SAYS THE CITY IS SIMPLY OVERWHELMED.

>> EVERY YEAR, WE GET AN ADDITIONAL 500,000 TO 700,000 PEOPLE. THAT'S THE NET ADDITION FOR THE CITY.

>> SEVEN HUNDRED THOUSAND PEOPLE EVERY YEAR?

>> SEVEN HUNDRED THOUSAND PEOPLE, YES. A MAJORITY OF THIS GROWTH IS OF PEOPLE WHO ARE POOR. AND THEY TYPICALLY COME AND SETTLE IN THESE KIND OF SETTLEMENTS. ONLY 27% OF THE CITY IS ACTUALLY A PLANNED CITY. THE REST OF IT HAS JUST GROWN LIKE THIS. AND YOU CANNOT STOP THEM FROM COMING, BECAUSE THAT'S THE ONLY PLACE THEY WILL GET SOME LIVELIHOOD FROM.

>> Reporter: BABIES BORN TODAY ENTER A WORLD WHERE 13% OF THE POPULATION DOES NOT HAVE ACCESS TO CLEAN DRINKING WATER. THAT WAS THE SUBJECT OF STEVE SAPIENZA'S REPORT IN MARCH FROM DHAKA BANGLADESH.

>> IF YOU WANT TO SEE THE HUMAN TOLL EXACTED BY UNSAFE WATER AND POOR SANITATION IN DHAKA, YOU COME HERE. THIS IS THE OVERFLOW TENT AT THE SHORT-STAY UNIT AT DHAKA'S MAIN CHOLERA AND DIARRHEA HOSPITAL. THIS MAN ARRIVED AT THE HOSPITAL WITH NO VITAL SIGNS. AFTER 15 MINUTES OF TRYING TO REVIVE HIM, HIS WIFE IS GIVEN THE NEWS. THE STAFF REPORTS CHOLERA AS THE CAUSE OF DEATH.

>> Sreenivasan: BUT WHILE THE OVERALL NUMBER CONTINUES TO RISE, IN PLACES LIKE BRAZIL, FAMILY SIZES ARE SHRINKING. IN AUGUST, FRED DE SAM LAZARO OUTLINED SOME OF THE FORCES CHANGING FERTILITY RATES THERE.

>> 80% OF WOMEN OF CHILD-BEARING AGE USE CONTRACEPTION. AT THE SAME TIME, A ROBUST ECONOMY HAS NEEDED THEIR LABOR. TODAY, WOMEN MAKE UP 40% OF THE COUNTRY'S WORK FORCE UP AND DOWN THE ECONOMIC LADDER. THE MAJORITY OF COLLEGE GRADUATES IN BRAZIL ARE WOMEN.

>> Sreenivasan: TO SEE MANY MORE IMAGES YOU CAN DOWNLOAD THE NATIONAL GEOGRAPHIC SEVEN BILLION APP FOR THE iPAD. FOR MORE NOW ON WHAT A SEVEN BILLION PERSON WORLD MIGHT MEAN, WE ARE JOINED BY AZZA KARAM, A SENIOR ADVISOR AT THE U.N.'S POPULATION FUND AND DENNIS DIMICK. HE IS THE EXECUTIVE EDITOR OF ENVIRONMENT AT "NATIONAL GEOGRAPHIC" MAGAZINE, OUR PARTNER IN WORLD POPULATION COVERAGE.

>> Brown: SO DENNIS, LET ME START WITH YOU, WHAT ARE THE IMPLICATIONS OF A 7 BILLION PERSON WORLD. YOU'VE BEEN LOOKING AT THESE STEERS ALL YEAR.

>> WELL, I THINK THE IDEA THAT 7 BILLION IS REALLY JUST A SPOT ON A TRAJECTORY THAT WE'RE ALL ON. AND WE WERE AT 6 BILLION JUST A FEW YEARS AGO AND BY 2025 WE'LL BE AT 8. SO REALLY WHAT IT IS, IT REALLY GIVES US AN OPPORTUNITY TO THE SO MUCH JUST TO TALK ABOUT 7 BILLION BUT WHAT DOES THAT MEAN. AND WHAT ARE THE KIND OF CHALLENGES THAT WE ALL FACE AS WE GO FORWARD TO TRY TO FULFILL THE NEEDS OF EVERYBODY ON THE PLANET.

>> NOW AZZA KARAM, IT'S A NICE ROUND NUMBER THAT GETS OUR ATTENTION, SO NOW YOU HAVE IT, SO WHAT SHOULD WE BE FOCUSED ON.

>> WE SHOULD BE FOCUSED BOTH ON THE CHALLENGES THAT THIS RESPECTS AS WELL AS ON THE OPPORTUNITIES BECAUSE THERE IS NO WAY THAT IT IS ONLY A LITANY OF CHALLENGES. IT CERTAINLY IS A MATTER OF ACCESS TO RESOURCES. MORE PEOPLE MEANS MORE PRESSURE ON ALREADY RARE RESOURCES FROM THE AIR WE BREATHE, THE WATER WE DRINK, THE FOOD WE EAT. IT LIT REALLYLY IS A GREAT DEAL MORE DEMAND THAN THERE MAY WELL BE SUPPLY. BUT AT THE SAME TIME, WE HAVE TO BALANCE THAT PERSPECTIVE BY LOOKING AT THE OPPORTUNITIES THAT 7 BILLION PRESENTS IN TERMS OF THE MOST AMAZING AMOUNT OF HUMAN POWER THAT THIS EARTH HAS EVER SEEN. AND ESPECIALLY GIVEN THE TECHNOLOGY THAT IS BEING EVOLVING AS WE SPEAK, ESPECIALLY COMMUNICATION TECHNOLOGIES. BUT ALSO THE TECHNOLOGIES OF BETTER USE OF RESOURCES THAT WE'RE ALL TRYING TO HARVEST. THE FACT THAT THERE WILL BE 1.8 BILLION OF THAT 7 BILLION IS YOUNG PEOPLE, WHICH IS A REMARKABLE POTENTIAL, AS WE'RE SEEING EVERY DAY UNFOLD IN TERM ITS OF NEW STRATEGIES FOR SEEKING DEMAND. AND ONE OF THE CHALLENGES AND ALSO AN OPPORTUNITY IS THE FACT THAT WE HAVE A LOT MORE WOMEN WHO WILL BE HARD-PRESSEDS AHEADS OF HOUSEHOLDS TO MAKE ENDS MEET. BUT AT THE SAME TIME, A LOT MORE WOMEN IN THE LABOR FORCE WHO ARE IN POSITIONS OF DECISION-MAKING. SO I THINK WE NEED TO MAKE SURE WE KEEP THAT BALANCED PERSPECTIVE ALL THE TIME WITHIN DENNIS AS ONE OF THE STORIES WE PROFILED SHOWED, THE RATE OF POPULATION GROWTH ISN'T THE SAME ALL OVER THE WORLD. IN FACT THE U.N. SAYS THAT 42% OF THE POPULATION ON EARTH IS NOT REPLACING ITSELF GENERATION AFTER GENERATION. 40% IS AND MAYBE A LITTLE BIT MORE. AND THEN THERE IS ANOTHER 18% THAT'S RAPIDLY GROWING. WHAT ARE THESE DISPARITIES ABOUT?

>> WHAT WE SEE IN LARGE MEASURE IS IN NORTHERN LATITUDE COUNTRIES, IN FACT, WE'RE SEEING ACROSS EUROPE AND JAPAN WE'RE ACTUALLY SEEING FERTILITY RATE, THAT'SED NUMBER OF CHILDREN BORN PER WOMEN THAT REACH CHILD BEARING AGE IS ACTUALLY LESS. SO WE ARE SEEING AGING POPULATIONS A GROSS ASIAN AND IN JAPAN. SO WE DON'T HAVE THE YOUNG PEOPLE COMING INTO THE SOCIETY THAT DO THINGS LIKE WORK AND PAY THE TAXES AND HELP PAY FOR THE PENSIONS, FOR EXAMPLE. AND THEN LARGELY IN SOUTHERN COUNTRIES, FOR EXAMPLE, MOST OF THE LARGEST POTENTIAL GROWTH WE'RE GOING TO SEE IS IN AFRICA AND IN SOUTHERN ASIA WHERE THE POPULATIONS ARE GETTING YOUNGER.

>> WHAT DOES IT MEAN WHEN WE HAVE THESE SORT OF LOPSIDED SOCIETIES WHEN CERTAIN COUNTRIES ARE GOING TO HAVE MUCH OLDER POPULATION WAS THE YOUNG TO SUPPORT THEM?

>> WELL, IT BASICALLY MEANS WHAT WE'RE SEEING EVOLVE RIGHT NOW WHICH IS MIGRATION PATTERNS FROM THE AREAS WHERE THERE SEEMS TO BE TOO MANY PEOPLE, IF ONE CAN SAY THAT, TO AREAS WHERE THERE IS OBVIOUSLY A NEED FOR LABOR BECAUSE THERE IS A VERUOUS SHORTAGE OF THAT LABOR THAT IS ONLY ONE OF MANY IMPLICATIONS BY IS THIS MIGRATION TREND. ARE YOU ALSO GOING TO SEE DIFFERENT KINDS OF PRESSURES BEING EXERTED BY GOVERNMENTS. UNFORTUNATELY, ON WOMEN TO EITHER TRY TO ENCOURAGE THEM TO HAVE MORE CHILDREN. BUT WHAT IS INFINITELY MORE EFFECTIVE, I THINK, AND THAT'S ONE OF THE REASONS WHY THE UNITED NATIONS POPULATION FUND HAS BEEN LEADING A 7 BILLION ACTIONS CAMPAIGN GLOBALLY WHAT IS A GREAT DEAL MORE EFFECTIVE IS TO SHOW HOW WOMEN CAN BECOME VERY IMPORTANT AGENTS OF CHANGE IN THEIR SOCIETIES, BUT IN ORDER TO DO SO THEY NEED ACCESS TO GOOD HEALTH CARE, ACCESS TO EDUCATION. EQUITABLE ACCESS TO ALL KINDS OF ACCESS. BUT WE ALSO KNOW THAT INVESTING IN HEALTH CARE ESPECIALLY MATERNAL HEALTH AND EDUCATION ABOUT SEXUALITY AND REPRODUCTIVE HEALTH IS CAN BE-- CAN SAVE LIVES AND IT CAN SAVE A GREAT DEAL OF MONEY. SO IT'S VERY COST-EFFECTIVE TO DO THIS.

>> DENNIS, ON YOUR SITE THERE'S A STORY THAT SAYS A BABY BORN TODAY IN THE U.S. OR PERHAPS IN A WESTERN NATION HAS A 50/50 CHANCE OF LIVING TO BE 100 YEARS OLD. WHAT SORTS OF RESOURCE STRAINS OR WHAT SORTS OF RESOURCES DO WE HAVE TO HAVE TO SUSTAIN A POPULATION THAT CAN LIVE THAT LONG.

>> WELL, I THINK THAT'S ONE POINT THAT WE'VE TRIED TO MAKE IN OUR SERIES, ALSO IS THIS DISCUSSION OF POPULATION IS REALLY NOT JUST ABOUT NUMBERS OF PEOPLE BUT IT'S ALSO THE RESOURCES THAT EACH OF US USE. AND IF YOU LOOK IN THE UNITED STATES, FOR EXAMPLE, WE USE MANY, MANY TIMES MUCH MORE RESOURCES PER PERSON THAN SAY A PERSON IF BANGLADESH. OR OTHER COUNTRIES. IT DOESN'T HAVE ADVANTAGE OF THINGS LIKE ELECTRICITY. A QUARTER OF THE WORLD'S POPULATION DOESN'T EVEN HAVE ELECTRICITY LIKE WE TAKE ADVANTAGE OF EVERY DAY.

>> WHAT ARE THOSE CORELATIONS THAT YOU'RE SEEING BETWEEN THE LEVELS OF EDUCATION FOR A WOMAN AND THE POPULATION GROWTH IN THOSE COUNTRIES.

>> WELL, WE KNOW FOR A FACT THAT THE STATISTICS INDICATE THAT WOMEN WHO HAVE MORE ACCESS TO POPULATION AND WHO ARE BEST EDUCATED ARE ACTUALLY WOMEN WHO CHOOSE TO HAVE SMALLER FAMILIES. CERTAINLY SMALLER COMPARED TO GENERATIONS BEFORE THEM. SO THERE IS A VERY STRONG CORELATION BETWEEN EDUCATION AND CHOOSING OR THE ABILITY TO MAKE CHOICES ABOUT THE SIZE AND THE NUMBER OF OUR FAMILIES. BUT THE EVEN MORE IMPORTANT POINT THAT WE HAVE TO MAKE WHICH IS THAT EFFECTIVELY THERE ARE OVER 200 MILLION WOMEN WHO WOULD WANT TO HAVE ACCESS TO FAMILY PLANNING FACILITIES IN CARE AND WHO CANNOT HAVE THAT ACCESS. AND ONE OF THE THINGS THAT YOU POPULATION FUNAND MANY PARTNERS AROUND THE WORLD IS ENGAGING IN IS TRYING TO ENSURE THAT THERE IS AN AWARENESS THAT WE HAVE TO MAKE SURE THAT NOT ONLY THE KNOWLEDGE AND EDUCATION BUT ALSO ACCESS AND INFORMATION ABOUT FAMILY PLANNING AND REPRODUCTIVE HEALTH CARE AND ACCESS TO SERVICES, ALL MANNER OF REPRODUCTIVE HEALTH SERVICES NEEDS TO BE MADE AVAILABLE FOR WOMEN AROUND THE WORLD. AND FOR FAMILIES.

>> ALL RIGHT. AZZA KARAM FROM THE UNITED NATIONS POPULATION FUND AND DENNIS DIMICK FROM NATIONAL GEOGRAPHIC MAGAZINE, THANK YOU SO MUCH FOR YOUR TIME.

>> THANK YOU.

>> THANK YOU.

>> Warner: FINALLY TONIGHT, IMAGES OF WOUNDED WARRIORS TAKEN BY A COMBAT VETERAN WHO WANTS AMERICANS TO SEE THE IMPACT OF WAR ONE PICTURE AT A TIME. "NEWSHOUR" CORRESPONDENT TOM BEARDEN HAS THE STORY.

>> Reporter: COMBAT PHOTOGRAPHERS HAVE BEEN DOCUMENTING THE TERROR, THE VIOLENCE AND THE BOREDOM OF WAR EVER SINCE THE INVENTION OF PHOTOGRAPHY. AMERICA'S 21st CENTURY CONFLICTS IN IRAQ AND AFGHANISTAN ARE NO DIFFERENT. THESE PICTURES WERE TAKEN BY AIR FORCE SERGEANT STACY PEARSALL. SHE IS ONE OF A VERY SMALL NUMBER WOMEN TO HAVE BEEN ADMITTED TO THE ELITE RANKS OF COMBAT PHOTOGRAPHERS.

>> I JOINED THE AIR FORCE AT 17. IT JUST SEEMED THE NATURAL THING TO DO SINCE THE MAJORITY OF MY FAMILY SERVED IN ONE BRANCH OF THE MILITARY OR ANOTHER. AND THE MILITARY HISTORY OF MY FAMILY GOES ALL THE WAY BACK TO THE REVOLUTIONARY WAR.

>> Reporter: SHE SPENT FOUR YEARS PROCESSING FILM FROM U-2 SPY PLANES BEFORE SHE BECAME A MEMBER OF WHAT IS VIRTUALLY AN ALL MALE CLUB.

>> SO, I WAS PRETTY EXCITED WHEN I GOT MY ACCEPTANCE INTO THAT UNIT. AND, THERE WAS ALWAYS GONNA BE THOSE FEW IN THE BUNCH THAT ARE SORT OF THE NAYSAYERS AS TO HOW SUCCESSFUL YOU WILL OR WON'T BE AS A FEMALE IN THAT UNIT. AND THAT MADE IT REALLY TOUGH.

>> Reporter: PEARSALL SAYS SOME WERE DOWNRIGHT HOSTILE.

>> I HAD A GUY TELL ME TO MY FACE THAT HE DIDN'T BELIEVE THAT WOMEN BELONGED IN THE MILITARY AND THAT THEY'RE BETTER SERVED IN THE KITCHEN.

>> Reporter: PEARSALL SAYS THAT

>> I FELT, AS A WOMAN, THAT I DID NOT WANT TO GIVE ANYBODY ANY REASON TO NOT BELIEVE OR HAVE FAITH IN ME. SO, I WORKED EXTRA HARD. ALL THE TIME. WHEN PEOPLE WERE SLEEPING, I WASN'T. WHEN PEOPLE WERE PARTYING, I WAS TRAINING.

>> Reporter: SHE TRAVELED TO SOME 41 COUNTRIES DURING HER CAREER. SHE WAS ATTACHED MOSTLY TO ARMY AND SPECIAL FORCES UNITS, WHERE SHE EXPERIENCED EVERYTHING THOSE SOLDIERS DID-- LIVING ROUGH, RISKING HER LIFE, EVEN HAVING TO USE HER WEAPON TO DEFEND HERSELF. SHE TOOK TENS OF THOUSANDS OF PICTURES AND WON A SHELF FULL OF AWARDS. SHE IS ONE OF ONLY TWO WOMEN TO WIN THE MILITARY PHOTOGRAPHER OF THE YEAR AWARD FROM THE NATIONAL PRESS PHOTOGRAPHERS ASSOCIATION AND SHE WON IT TWICE. SOME OF THE PICTURES HAVE AMAZING BACK STORIES, LIKE THE DAY SHE WAS ABOARD A CARGO PLANE THAT NEEDED TO TAKE OFF BEFORE SUNRISE TO AVOID ENEMY GROUND FIRE. THE PILOT WAS ASKED TO DELAY THE DEPARTURE SO A BADLY WOUNDED SOLDIER COULD MAKE THE FLIGHT. IF HE MISSED IT, HE WOULD LIKELY DIE. BUT THAT WOULD MEAN RISKING GETTING SHOT DOWN.

>> HE GOT ON THE INTERCOM AND SAID HEY THERE'S A CRITICALLY WOUNDED SOLDIER, IT'S REALLY GOING TO BE A SHOW OF HANDS WHO WANTS TO STAY AND WAIT AND WHO WANTS TO GO. AND THERE WASN'T EVEN A QUESTION. THEY SAID STAY AND EVERYONE RAISED THEIR HAND. THERE WAS NO DOUBT. THE HELICOPTER LITERALLY LANDS OFF TO THE SIDE. THE MEDICS GRAB HIM AND JUST ONE FRAME THAT'S ALL I HAD, ONE FRAME. THEY PULLED HIM OFF AND THEY STARTED WALKING UP THE RAMP, CLICK AND THEN I RAN TO THE RAMP AND WE WERE OFF. AND HE SURVIVED BECAUSE EVERYBODY SACRIFICED OR PUT THEIR LIVES IN DANGER FOR HIM. AND I THINK THAT THAT'S A REAL REPRESENTATION OF WHAT ITS LIKE TO BE IN THIS FRATERNITY WE CALL THE MILITARY.

>> Reporter: PEARSALL IS SMILING IN MOST OF THE PICTURES TAKEN OF HER OVERSEAS. SHE DOESN'T SEEM TO SMILE VERY EASILY TODAY, PERHAPS BECAUSE SHE'S IN NEARLY CONSTANT PAIN, ALTHOUGH YOU WOULDN'T KNOW IT BY LOOKING AT HER.

>> TOWARD THE END OF MY SECOND TOUR, IN IRAQ, OUTSIDE OF BAGHDAD, I WAS HIT BY A ROADSIDE BOMB. WE WERE TRAVELING WITHOUT DOORS ON, SO WE TOOK PRETTY MUCH THE WHOLE THING. AND I HURT MY NECK PRETTY GOOD, CAUSE I IMPACTED THE SEAT IN FRONT OF ME. SO TRAUMATIC BRAIN INJURY AND CERVICAL SPINE INJURY.

>> Reporter: THAT WAS IN 2004. SHE DIDN'T SEE A DOCTOR BECAUSE SHE WAS AFRAID OF WHAT OTHERS MIGHT HAVE THOUGHT.

>> WHEN I WAS HURT NOBODY KNEW. I KEPT THAT VERY CLOSE TO MY CHEST, BECAUSE I FELT LIKE IF I LET THEM INTO THAT WORLD ABOUT HAVING A WEAKNESS, THEN THAT'S ALL THEY WOULD EVER FOCUS ON WAS THAT OH, SHE'S A WOMAN, SHE'S WEAK. SHE CAN'T HANDLE IT.

>> Reporter: SHE WAS HURT BY ANOTHER I.E.D. IN 2007 AND THAN AGAIN DURING AN AMBUSH.

>> I WOULD NOT BE ABLE TO GRIP THINGS OR HOLD THINGS AND THEY WOULD JUST DROP OUT OF MY HANDS. AND I HAD SOME PRETTY BAD NERVE PAIN, JUST ROCKING ALL THE WAY DOWN MY RIGHT SIDE. I KNEW I WAS IN A WORLD OF HURT.

>> Reporter: SHE FINALLY SOUGHT HELP AND DOCTORS TOLD HER MILITARY CAREER WAS OVER.

>> I LAID ON THAT COUCH AND I STARED AT MY CEILING AND I DECIDED WHAT KIND OF LIFE IS THIS FOR ME? I CAN EITHER-- YOU KNOW, I WAS 27 YEARS OLD WHEN I GOT WOUNDED. DO I... DO I ACCEPT DEFEAT AND JUST DO WHAT THEY TELL ME TO DO OR GET ON WITH MY LIFE AND JUST DEAL WITH THE NEW ME AND THE NEW LIMITATIONS I DO HAVE OR PUSH THROUGH THEM.

>> Reporter: DESPITE BEING TOLD SHE SHOULDN'T CARRY THE EQUIPMENT ANY MORE, PEARSALL DECIDED TO CONTINUE HER PHOTOGRAPHIC CAREER AS A CIVILIAN.

>> HEY, HONEY, WHAT'S GOING ON?

>> Reporter: SHE AND HER HUSBAND, ANDY DUNAWAY, ALSO A RETIRED AIR FORCE COMBAT PHOTOGRAPHER, OPENED A STUDIO IN CHARLESTON, SOUTH CAROLINA. SHE SPENDS A LOT OF TIME WORKING ON A PERSONAL PROJECT, TAKING PORTRAITS OF MILITARY VETERANS. SHE SPENT PART OF THIS DAY ABOARD THE U.S.S. YORKTOWN, A DECOMMISSIONED AIRCRAFT CARRIER THAT IS NOW A MUSEUM SHIP, FORMER CREW MEMBERS WERE HAVING A REUNION IN CHARLESTON. SHE HAULED SEVERAL BAGS OF EQUIPMENT AND SET UP A STUDIO OFF TO THE SIDE ON THE HANGAR DECK, AND LATER ADMITTED IT WAS PAINFUL.

>> A WHILE BACK I STARTED A THING I LIKE TO CALL THE VETERANS PORTRAIT PROJECT. AND I MET SO MANY GREAT VETERANS WHILE I WAS AT THE V.A. GETTING MEDICAL CARE THAT I JUST STARTED BRINGING MY CAMERA AND MAKING PORTRAITS. AND THEN I STARTED BRINGING A BACKDROP AND SOME LIGHTS AND THEN THE NEXT THING I KNOW I HAD LIKE 300 AND SOME PICTURES. HE WAS PART OF THE LIBERATION CREW IN POLAND.

>> Reporter: 88 OF THOSE PICTURES NOW HANG IN THE HALLWAY OF THE ROBERT H. JOHNSON VA MEDICAL CENTER IN CHARLESTON. MANY ARE PEOPLE SHE MET THERE WHILE GETTING TREATMENT FOR HER SPINAL INJURIES AND P.T.S.D.

>> I MET ALL KINDS OF PEOPLE, FROM WORLD WAR II, KOREA, VIETNAM, OPERATION IRAQI FREEDOM, OPERATION ENDURING FREEDOM, AND EVERY SKIRMISH IN BETWEEN...

>> Reporter: SOME OF THEM WERE DEEPLY TROUBLED.

>> I WAS TOLD THAT BEFORE I MADE HIS PORTRAIT THAT HE HADN'T REALLY TALKED TO ANYBODY IN WEEKS. SO HE WALKED UP AND I MADE HIS PORTRAIT. AND THEN AFTERWARDS, YOU KNOW, HE SAID THANK YOU. AND IT WAS THE FIRST WORDS HE HAD SPOKEN IN WEEKS, SO I FELT REALLY TOUCHED THAT I COULD HAVE THAT IMPACT ON HIM AND THOUGH WE DIDN'T EXCHANGE MANY WORDS, WE TALKED A LOT AND I THINK THAT'S WHAT'S REALLY SPECIAL ABOUT THIS PROJECT.

>> Reporter: PEARSALL HOPES TO PUBLISH THE PICTURES AND SEND A MESSAGE.

>> IF WE JUST KIND OF FORGET ABOUT THEM, IN THE MOUNTAINS OF AFGHANISTAN, WHAT SERVICE ARE WE DOING THEM? THEY'RE ONLY SERVING US AND IT SHOULD BE A TWO WAY STREET. AND, SORRY, IT'S HARD FOR ME NOT TO GET MAD ABOUT THAT. IT'S LIKE NOT ACKNOWLEDGING THEIR SACRIFICE AT ALL. AND PUTTING A MAGNET ON YOUR CAR THAT SAYS SUPPORT OUR TROOPS, THAT'S FINE. BUT DO IT IN MORE THAN JUST A MAGNET, DO IT IN WORDS. YOU KNOW, WRITE THEM A LETTER AND SAY THANK YOU. FOR ME, THERE WAS NOTHING MORE REWARDING THAN TO GET A HAND WRITTEN LETTER FROM AN ELEMENTARY SCHOOL KID THAT SAYS- - IT TOTALLY MISSPELLED AND EVERYTHING THAT SAYS THANK YOU.

>> Warner: PEARSALL'S PHOTOGRAPHS ARE CURRENTLY ON EXHIBIT AT THE MONTCLAIR ART MUSEUM IN NEW JERSEY THROUGH VETERANS DAY.

>> Brown: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: GLOBAL STOCK MARKETS SURGED AFTER EUROPEAN LEADERS CLINCHED A DEAL TO CONTAIN THE CONTINENT'S DEBT CRISIS. THE DOW INDUSTRIALS GAINED NEARLY 340 POINTS. AND THE U.N. SECURITY COUNCIL VOTED TO LIFT THE NO-FLY ZONE OVER LIBYA AND END THE NATO BOMBING CAMPAIGN AS OF MONDAY. ONLINE, WE HAVE MORE FROM THE COMBAT PHOTOGRAPHER TOM BEARDEN PROFILED. KWAME HOLMAN HAS THE DETAILS. KWAME?

>> Holman: AIR FORCE SERGEANT PEARSALL DESCRIBES THE FIREFIGHT THAT ENDED HER MILITARY CAREER. WATCH THAT VIDEO ON THE RUNDOWN BLOG. WE EXPLORE THE CHALLENGES AND BENEFITS OF EARTH'S GROWING POPULATION. FIND A CHART SHOWING THE RAPID RISE ON OUR WORLD PAGE. ALL THAT AND MORE IS ON OUR WEB SITE: newshour.pbs.org. MARGARET?

>> Warner: AND THAT'S THE "NEWSHOUR" FOR TONIGHT. I'M MARGARET WARNER.

>> Brown: AND I'M JEFFREY BROWN. WE'LL SEE YOU ONLINE AND AGAIN HERE TOMORROW EVENING WITH MARK SHIELDS AND DAVID BROOKS, AMONG OTHERS. 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.

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