The NewsHour With Jim Lehrer : WETA : August 25, 2009 7:00pm-8:00pm EDT; The NewsHour With Jim Lehrer

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>> ill: GOOD EVENING. I'M GWEIFILL. ON THEEWSHOUR THIS TUESDAY, THE LEAD STY: BEN BERNANKE WINS REPOINTMENT AS HEAD OF THE FEDER RESERVE, AS THE DEFICIT BAOONS. JUDY WOODRUFF TAK A LOOK. THE OTHER NEWS OF THE DAY: LF OF THE NATION AT RISK FOSWINE FLU THIS FL, AND WE LOOK AT HOW THE GOVEMENT IS PREPARING; FRED DEAM LAZARO TELLS THE STORY OF DRUG-RESISNT MALARIA IN CAMBODIA; AND JFREY BROWN TALKS TO S JOURNALISTS FROM AROUND THE COURY ABOUT HOW THE ECONOMIC AND HEALTH CAREEBATES ARE HITTING HOME. MAJOR FUNDING FOR THNEWSHOUR WITH JIM LEHRER IS PROVIDEBY: >>HAT THE WORLD NEEDS NOW IS ENERGY. THE ENERGY TO G THE ECONOMY HUMMING AGAIN. THE ENERGY TO TACKLE ALLENGES LIKE CLIMATEHANGE. WHAT IS THAT ERGY CAME FROM AN ENERGY COMPANY EVRYDAY, CHEVRON INVESTS $62 MILLION IN PEOE, IN IDEAS-- SEING, TEACHING, BUILDING. FUELING GROWTH OUND THE WORLD TOOVE US ALL AHEAD. THIS IS THE POWERF HUMAN ENERGY. CHEVRON. INTEL. SUPPORTING MH AND SCIENCE EDUCATION FOROMORROW'S INNOVATOR THE NATIONAL SCIENCE FNDATION. SUPPORTI EDUCATION AND REARCH ACROSS ALL FIELDS OF SCIENCE AND ENGINEERG. AND WITH THE ONGNG SUPPORT OF THE INSTITUTIONS AND FOUNDATIONS. AND... THISROGRAM WAS MADE POSSIBLE BY THE CORPORATION FO PUBLIC BROADCASTG. AND BY CONTRIBUTIONS TO YOURBS STATION FROM VIEWERS LI YOU. THANK YOU.

>> Ifill: PRESIDENT AMA NOMINATED THE CHAIRMAN OF E EDERAL RESERVE, BEN BERNANKE TO A SECOND TERM TODAY E BERNANKE VOTE OF CONFIDEN HAPNED AT THE SAME TIME TWO GOVERNMENT RORTS PROJECTED CH HIGHER BUDGET DEFICITS OR THE NEXT TEN ARS. JUDY WDRUFF HAS OUR LEAD STORY REPORT.

>> THE M NEXT TO ME, BEN BERNANKE, HAS LED THE FED THROH ONE OF THE WORST FINAIAL CRISES THAT THIS NATION AND THEORLD HAS EVER FACED.

>> Reporter: THERESIDENT PICKED THE MIDDL OF HIS FAMILY VACATION ON MARTHA'S VINEYARD TO BREA THE NEWS. >>E'S AN EXPE ON THE CAUSES OF THE GREAT DEPSSION. I'MSURE BEN VER IMAGINED THAT HE ULD BE PART OF TEAM RESPONSIB FOR PREVENTINGNOTHER. BUT BECAUSE OF HISBACKGROUND, HIS TEMPERAME, HIS COURAGE ANDREATIVITY, THAT'S EXACTLY WHAT HE HAS HELPED TO ACHIEVE. I'D LIKE TO EXPRESS MY GRATITUDE PRESIDENT OBAMA OR THE COIDENCE SHE'S SHOWN IN WITH THIS NOMINATION. AND FORIS UNWAVERNG SUPPORT FOR A STRONG AND INDEPENDENT FEDERAL RESERVE.

>> Reporter: T WHITE HOUSE TIMI OF THE ANNOUEMENT DELUDED THE STING FRO SME BAD NEWS RELEASED TODAY. THE PRESIDENT'S BUDGET DIRECTOR PROJECTED CORD HIGH DEFICITS FOR E NEXT DECADE. OF $9 TRILLION. 2 TRILLION HIGHE THAN EARLIER TIMATES. MEANWHILE THE CONGSSIONAL BUDGET OFFICEROJECTED 7.4 TRILLION DOLLAR DEFICITS OVER TEN YEARS. THE LOWER FIGURE FACTORS IN HE 2011 EXPIRATION OF THE BUSH ERA TAX CUTS FOR WEALTHY AMERICANS. BOTH FORECASTS SAID THE UNEMPLOYMENT RATE ULD RISE TO 10%. AND REMAIN THERE THROUGH NEXT YEAR. CHAIRMAN BERNANKE CURRENT TERM END NEXT JANRY. HE WILL NEED TO BE CONFIRMED AGA BY THE SENATE IN ORDER TO SERVE A SECOND FOUR-YEAR TERM. THE PRESIDEN SAID HE HAD EARNED IT.

>> BEN APPROACH THE FINANCIAL SYST ON THE VERGE OF CLASS WIT CALM AND WISDOM. WITH LD ACTION, AND OUT OF THE BOXTHINKING. THAT HELP PUT THE BRAKE O OUR ONOMIC FREE FALL. ALMT NONE OFHEECISIONS THAT HE OR ANY OF U MADE HAVE BEEN EASY. THE ACTIONS WE'VE TAKEN TO STABLIZE OUR FINAIAL SYSTEM TO REPAIR OUR CREDIT MARKETS, RESTRUCTURE OUR AUTO INDUSTRY AND PASS A RECOVERY PACKAGE HAVE ALL BEESTEPS OF NECESSITYNOT CHOICE.

>> Reporter: BUTHOSEHOICES HAVE BROUGHT BERNANKE CRICISM AS WELL AS PRAISE. THE FED DIDITTLE TO REIGN IN MORTGAGE LNDING PRACTES THAT CONTRIBUTED TO THE HOUSIN MARKET'S COLLAPSE AND THE CREDIT CRISIS. RNANKE HELPED SHEPHERD THE RESCUE OF ONE INVESTMENT BANK, FAING BEAR STEARNS, AND LAS FALL WAS INVOLVED IN THE DECISION LET ANOTHER, LEHMAN BROTHERS, GO INTO BANKRUPTCY. HE WAS ALSO INVOLVED IN BANK OF AMERICA'SCONTROVERSIAL ACQUITION OF MRRILL LYNCH. HE LATER PUSHED FOR THE SOMETHING SHALLY APPROVED LARGE BANK BAILOUT OF LAST FALL. HE FED PUMPED AN AITIONAL $2 TRILLIONNTO THE BANKING SYSTEM TO STABLIZE IT. ANDHROUGH IT ALL, BERNANKE HAS KEPT INTEREST RATES AT RECORD LOWS. NEAR ZERO THIS MORNING THECHAIRMAN SPOKE OF HIS DECISIO AS H LOOKED FORWARD.

>> WE HAVE BEEN BOLD OR DELIBERATE AS CIRCUMANCES DEMANDED BUT OUROBJECTIVE REMAINS CONSTANT, TO REFOR A MORE STAB FINANCIAL AND ECONOMIC ENVIRONMENT IN WHICH OPPORTUNI CAN AGAIN FURISH AND IN WHICH AMERICANS' HARD WORK ACREATIVITY CAN CEIVE THEIR PROPER REWARDS.

>> Reporter: LAST WEK BERNANKEAVE A CAUTIOUSLY PTIMISTIC APPRAISAL OF THAT OBJECTIVE, TELLING A MEETING OF GLOB BANKING OFFICIALS THAT THE US. ECONOMY IS POID FOR GROWTH. FOR CLOSER LOOK AT THE FED AND BUDGET NEWS, WE TURN TMAYA MacGUINEAS, PRESENT OF THE COMMITTEE FOR A REONSIBLE FEDERAL BUDGET AND RECTOR OF THE FISCAL POLICY PROGRAM THE NEW ARICA FOUNDATION, A NON- PARTISAN THINK TANK IN WASHINGTON. KRHNA GUHA, U.S. ECONOMICS EDITOR AT THE FINANCIAL TIS. AND DAVID WESSEL, T AUTHOR OF "IN FEDE TRUST: BEN BERNANKE'S WAR ON THE GREAT PANIC. HE'S ALSO THE ECONOMICS EDITOR OF THE "WALL STREET JOURL." THANK YOU ALLHREE FOR BEING HERE. DAVID WESSE TO YOU FIRST, WHY DID THE PRESIDE DO THIS, WHAT WE THE PROS AT OUTQUESONED THE CONS?

>> THE PREDENT FIGURED THAT REPLACING THE DRIVERF THE CAR EN THE ROAD IS STILL SO BUMPY AND CUEY WAS RSKY. I THINK THE PRESENT DECIDED THAT CONTINUITRATHER THAN HANGE, DESPITE HS OFF STE COMMITMENT TOHANGE, WAS WISER. AND I INK THE PRESIDT OKED AT THE ALTERNIVE TO BERNANKEND THOUGHT, YOU KNOW THIS GUY ISN'T SUCH A BAD GUY AFTER ALL.

>> Woodruff: KRISHNA GUHA, HIS IS THE MAN WHO W THERE WHENHE RECESSION WAS COMI, AMONG MANOTHERS, DIDN'T SEE IT COMING. A WOULD ARGUE THAT HIS LICY THAT HE PURSUED WER PART OF WHAT BROUGHT THIS RECESSN ON.

>> WELL IT'S CERTAINLY TRUE THAT CHAIRMAN RNANKE DID NOT PERCEIVE THEROUBLE THAT WAS BREWING, ALONG WITH MOST OTHER PEOPLE AND SOME OF THE EAS HE ADVANCED IN THE PRECRISIS PERIOD, I THINK HD THINK FFERENTLY ABOUT TODAY. BUT LET'S N FORGET, HE WAS ONLY FED CHAIRMAN FOR A YEAR AND A HALF ORO BERE THIS CRISIS ERUPTEDN AUGUST OF 2007. AND IT'S REAY IMPOSSIBLE TO PIN THEBLAME FOR IT ON HIM.

>> Woodruff: DAD, DO YOU HAE ANY SENSE THAT ANYDY ELSE WAS SERIOLY CONSIDERE

>> NO. WE KNO THAT LARRY SUERS, THE PRESIDENT' CLOSE ENOMIC ADSOR, HAS ALWAYSEEN RAFRDED AS A RIVAL TO MR BERNANKE. THERE WERE OTHER PEOPL WHO MIGHT HAVE BEEN ON THE LT. BUT O REPORTING IS TH ON PRESIDE OBAMA WORKING WITH CHIE OF STAFF EMANUELND TREURY SECRETARY GEITHNER, FOCUSED ON THE CHCE THEY HAD, THEYIDN'T SPEND MUCH TIME BEFORE THEY CA TO THE CONCLUSI THAT IN THIS CASE CONTINUITY WAS WISE AND THEY'D OFFER HIM A SECOND TERM.

>> Woodru: YOUR REPORNG WAS TH SAME?

>> YES.

>> Woodruff: AND KRISHNA GUHA, STILL HAS TO BE CONFIRMED BY THE SENATE. WHAT SHOULD WE EXPECT?

>> I WOULD BESTONISHED IF HE WAS T CONFIRMED. BUT I THI IT WILL BE A FAIRLY ROCKRY RI. THERE ARE A LOTF PEOPLE IN CONESS, WHO ALTHOUGH THEY CREDIT BERNAN FOR DOING EVYTHING HE COULD TO STOP THIS CRISIS, ARE VERY UNEASY ABOUTHIS EXTRAORDINARY USE OF FED POWERS ABOUT THE WAY HE'S BEEIN A SENSE CREATING MONEY TO PUMP LIQUIDITY INTO THE MARKTS TO BIAS SETS. A LOT OFPEOPLE IN CONESS DON'T LIKE THAT. THEY FEAR THE CONCENTRATI OF POWERS IN THE FD. ND SO THERE'S GOING TO B SOME TOUGH QUESTNSSKED.

>> Woodruff: DAV, WHAT'S YOUR SENSE HOW THE SENATE OCESS WILL GO?

>> I AGREE WITH KRISHNA. I THINK CONFIRMATION IS ALMOST A CERTAIY. BUT MR. BERNANKE D THE FED HAVE BECOME A LIGHTNING ROD FOR CONGRS HALL AND PUBLIC HOSTILITY TOWARDS THE BAILOUT OF WALL STREET. HE DID A GOO JOB TRYING TO PRENT HIS SIDE OF THE STO ONHE NEWS HOUR AND ON60 MINUTES". BUTHERE ARE A NUMBERF MEMBERS OF CONGRESS WHO ARE LOOKING FORWARD TO AN OPPTUNITY TO WCK HIM AGIN, AND I'M SURE THEY WILL. IT'S IMPORTANT FOR MR. BNANKE THAT HE GET THROUGH THIS PRESS WITH HIS CREDILITY INTACT. AND WITH SO SENSETHAT CONGRESS DOES RESPECT THE INDEPENDENCE OTHE FED WHEN IT COMETO MAKING MONETARY POLICY MOVING ITEREST RATES. MY EXPECTATIONIS LIKE THAT, BUT KRISHNA SUGGESTS, IT COULD BE A LTLE ROCKY IF THEY START BEATI UP ON HIM.

>> Wdruff: RYAN MCGINNE IN, ONE OF THTHINGS THAT WILL MAKE HIS LIFE DIFFICT HAD THE MONTHS AND YEARS TO COME ASUMING HE'S CONFIRMED, A THESE OHER NUMBERS TT CAME OUT TODAY, BIG, B DEFIT NUMBERS FORHE COMING DECADE. TELL US WHAT'S BHIND THOS NUMBERS, WHAT'S DRIVINGHIS?

>> THOSE ARE BIG DEFICIT NUMBERS AND TH COUPLE THE ANNOUNCEMENT O BERNANKE WITH THE ANNOUNCEME OF DEFICIT NUMBERS, RY PURPOSELY DIDN'T THEY. THAT WAS AN OBOUS SMRT MOV BUT WHAT THEY HAVE TO DEAL WITH NOWS A VERY DIFFICULT TIGHT ROPE WA BETWE HELPING T LET THE ECONOMIC RECOVERY CONTINUE,YOU DON'T NT TO START BALANCING THE BUDGET RHT AWAY, BUT ACTINGING THAT HIS DEFICIT NUMBER, TMENDOUSLY SCARY AND POSE AREAL RISK TO THE RECOVERY. SO THE NEW DEFIC NUMBERS SHOW THAT THERE WLL BE $2 TRILLION ME OVER THE NEXT TEN YEARS ADD TO THE DEFICIT. THAT'AAKEUP CALL THAT WE HAVE TO OH COME UP WITH A MEDIUM TERM BGET PLAN. AND THESE NUMRS AREN'T ALL FROM TH ECONOMIC DOWNFURSH, A LOTF THESE ARE POLICY DRIVEN. THE WHITE HOUSE HAS NEW POLICYS THAT WOULD KE THE DEFICITORSE OVER THE MEDM ERM. SO NOT ALL BCAUSE OF EORTS TO FIX THE ECONOMY.

>> NO, I DON'T LOOK AT THE BIG DEFICITS THIS YEARND SAY WE HAVE A PROBL. I AY THAT WAS VE PROPRIATE FOR THE DOWNRN. BUT WE HAVE THESE HUGE DEFICITSEN YEARS OUT, A MANY ARE BECAUSE WE HAVE POLICYS THAT WILL MAKE TH SITUATION WORSE, AND WE DON'T ENOH THAT WILL TACKLE THE BI DEFICIT. HEAL CARE IS THE ONLY ONE THAT'S BEING PURSUED NOW. WE'LL SEE WT HAPPENS WITH THAT, AND THAT'S NOT ENUGH EITHER. Woodruff: HOW MUCH, IS THE ADMINISTRATION IN A POSITION TO CHGE THESE DEFICITS? OR ARE THESE NUMBE STATICS, WEATHER WE STUCK WITH TSE?

>> THEY'RE GOING TO HAVE . WE'REOING TO GET OUT OF THI ONE WAY OR TO THE, EITHER THROUGH LEADERSHIP OR CRISIS, AND LET'S HOPE IT'S THOUGH THE WHITE HOUSE AND CONGRESS COMING TOGETHER D TACKLING THESE THINGS. THEY'RE GOING TOAVE TO LOOK AT SLOWING TH GROWTH OF HEALTH CAR COSTS A KEY COMPONENT OFEALTH CARE EFORM, BUT THEY AO HAVE TO LOO AT OTHER POLICYS FROM DEFEE TO SOCIAL SECURIT TO TAXES. THESERE THE KINDS OF TNGS, POLITICAL CONSUANTS ARE NOT EAGER TO DO. BUT THEY ARE WHAT ESE NUMBERS MAKE CLEAR THERE'S NO OICE BUT TOTACKLE THEM.

>> CONNECT THSE BAD DEFICIT NUMBERSO WHAT THE ADMINISTRATION NEEDS TO DO ABOUT THIS RECOVER AND THE JOB TT BEN BERNANKEAS FACING HIM NOW.

>> WELL, A MAYA SAYS, THE REAL THREAT HERE IS THE LONG-TERM DEFICIT. A STRUCTURAL DFICIT THAT LOOK AS THEY'LL STILL BE AROUND LONG AFTER THE IMMEDIATE CRISIS HAS FADED. THIS I A PROBLEM ON A NUMBER LEVELS. AS AR AS THE RECOVERY IS CONCERNED, PEOP WORRY AT AT SOME POINT THEOND MARKET IS GOG TO GET SICK OF THIS SULY OF AMERICAN GOVERNMENT. INVTORS, FOREIGN AND DOMESTIC, WILLASK FOR HIGHER RATES OF RERN, MANG IT OF COUR MORE EXPENSIVE FOR THE FEDERAL GOVNMENT TO BORROW MONEY. THISCOULD CROWN OUT, PRIVAT SEOR, AND WEAKEN THE RECOVER IT MUST BE SAID THOUGH AT THIS POINT THE BOND MARKET IS ACTUALLY REASONABLY RELAXED. E YIELDS ARE LOW AND THAT'S BECAUSE THERE'S REALLY NO COMPETITIONOR SAVINGS RIGHT NOW. IVATE SECTOR I NOT RROWING, PEOPLE ARE TRYING TO PAY DOWN DEBT. BUT AT SO POINT IN TH ATURE THIS WILL BE A PROBLEM.

>> Woodruff: HOW MUCH O A PROBLEM WILL IT BE FOR THE FEDERAL RESRVE BOARD CHAIRMAN, DID, ASSUMING HE IS CONFIRMED FOR THE SECONDERM?

>> I THINKIT'S PART OF THE ENVIRONNT THAT MR.ERNANKE FACES OVER THE NXT FOUR YRS IF HE'S CONFIRMED. WEORROW, AS KRISHNA SAYS, AN ENORMOUS AMOU OF MONEY, AND A LOT IT COMES FROM FOREIGNERS. PART OF BERNANKE'S JOB WI BE TO ASSUREHEM THAT HE HAS A POLICY AT WILL KEEP THE AMERIC ECONOMY RELATIVELY INFLATION-FREE, AND PROTECTING THE VALUE OF THEDOLLAR. BECAU IF THEY THINK THAT WE'RGOING TO HAVE INFLATIO IF HE'S GOING TOOW TO POLITICAL APPRIATER AND WAIT TOO LONG TO TIGHN CREDIT,R IF THEY THINK HE WAN TO LET TH DOLLAR FALL RATHER THAN RAISE INTERESTATES, THE MAY LOOK EEWHERE TO PUT THR SAVINGS, AND THAT MAY FORCE HIGHER INTEREST RATES HE, AND TH WOULD MAKE THE COST OF CAPITAL MRE EXPENSIVE, IT WOULD MAKE BUYING HOMES MORE EXPENSIVE, D THAT'S SOMETHING HE WANTS TO AVOID. Woodff: RYANCGINNES IN AS SOMEONE WHO WATCHES THE DGET VERY CLOSELY, THE FACT THAT THE FEDER RESERVE HAS SSENTIALLY GOTTEN INTO FISC POLICY MAKING,T'S BEEN THE FE THAT IS PUTTING OUT WHAT, TRILLNS OF DOLLARS OVER THE LAST FEW MONT TO TRY TO FIX WHAT'S GOING ON.

>> THAT'S RIGHT. MONETARY POLICYND FISCAL POLICY ARE NOW MORE COMBINED THAN TY HAVE BEEN. AND CHAIRMAN BEANKE HAS BEEN STESSING THE FOR STAN OF RESPSIBLE BUDGETING, AND SUSTAINT IN THE BUDGET. PART OF T REASON IS POLITICAL. NGRESS WAS NOT EAGE TO HAVE TO GET IOLVED WITH ALL THESE BAILOU AND TAP, AND ALL THE DIFFERENTHINGS THAT ITAS A BIG POLITICAL PH TO GET THE STIMULUS DON D IT WAS QUITE HPFUL, I BELVE, THAT THE FED CAME IN D STARTED DOING SOME OF THESE THINGS AND LPING THE LIQUIDITY AND HEING THE STILL LULS. THE CHALLENGE IS TWO-FOLD WE HAVE TO THINK ABOUT AN EXIT STRATE FOR THE FED AND ALSO AN EXIT STRATEGY IN FISCAL POLICY,OW TO TIME THOS,HOW TOSEQUENCE THEM. THERE'S A LOT O MOVING PARTS HERE.

>> Woodruff: YOU REFERED TO THAA FEW MINUTES AGO, KRISHNA. HOW BIG A PROBLEM IS THA FOR BERNANKE? WHAT ARE THECHOICES HE HAS BEFOREIM?

>> WE, HE'S GOT TO FGURE OUT BOTH HOW TO UNNDHESE EXTRAORDINARY MEASUR HE'S T IN PLACE TO SUPPORT THE FINANCIAL SYSTEM AND THE ECONOMY, AND WHEN TO PULL THE TRIGR. ALTHOUGH A T OF THE CONCERN IS ABOUT HOW HE MIGHT DO IT MY FEELING IS THAT INTHE END E REALLY TOUGH CALL IS WHEN. WAIT TOO LONG A YOU'LL GET TOO MUCH INFLATIO UNWIND TOO SOON, ANDE COULD STILLAVE A DOUBLE DIP RECESON.

>> Woodruff:OW WILL HENOW, DAVID, WHEN 'S THE RIGHT MOMENT?

>> WE HAVE TO PRAY TT HE HAS JUST A GREAT GUT. IT'S A VERY DIFFICULT CALL. AND I REQUIRES ACTINGEFORE IT'S CLEAR. ONE OF THE TOHEST PROBLEMS THAT MR. BERNANKE WILL FACE IS TT IT WILL INEVITABLY BE HIS JUDGMENT THAT THE TIME TO RAISE INTERESTRATES AND TIGHT IS BEFORE MOST AMERICANS BELVE THE ECONOMY IS HEALTHY ANDHE MEMBERS OF CORESS AND THE PRESIDE'S POLITICAL ADVISORS THINK THE TIGHTENING IS PRUDENT. AND THE TRIP WILL -- TRICK WL BE TO HAVE THE POLITICAL COURAGE TO DO WHAT HE THINK RIGHT EN THOUGH IT WILL BE ON DOUEDLY ONTROVERSIAL.

>> Woodruff: ANIT'S AN ELECTION AR NEXT YEAR.

>> IT IS.

>> I'M NOT CERTAINT WILL BE N PLAY WHEN YOU HAVE HIGH UNEMPLOYMENT NUMBERS, NOBODY WILL WANT TO DO THE - COMIN UP WITH DEFICIT REDUCTION PLANS, THOSE AREOT POPULARHINGS. BUT IT A TRICKY BALANCING T THAT IF YOU DON'T DO TIS QUICKLY ENOUG, YOU' LEAD TO INFLAON OR DEBT SPIRAL. AND IF DO Y IT TOO QUICKLY, YOU CAN DERA THE RECOVERY Woodruff: FINH THIS OFF, MR. GUHA.

>> I THINK HIS JDGMENT SO FAR IS PTTY GOOD. BUT LET'S REMEMBER WE'RE HALFW INTO A GAME OF HEARTS HERE. IN FIGHTING THE CRIS HE'S BEEN EXTRAORDINARILACTIVE AN ON BALAN MOST PEOPLE THINK QUITE SUCCESSFUL. BUT HE'S GOT THE SECONDHALF AHEAD. GETTING US BACK TO NORMAL WITHOUTETTING INFLATION, WITHOUT GEING A RENEWED RESSION. SO IN SOM SENSE OUR ASSESSMENT OF BERNANKE IS STILL PROVISIONAL TODAY.

>> Woouff: ALL RIGHT. GOD NOTE TO LEAVE IT ON. DAVID WESSEL, THANK YOU, KRISHNA GUHA, MAYA MCGINNES IN, THANK YOU ALL THREE, APPRECIATE I

>> Ifill:

>> Ifil CHAIRMAN BERNANKE TALKED WH JIM LEHRER AT A NEWSHOUR FORUMAST MONTH IN KANSACITY. Y CAN WATCH THAT SESSION ON O WEB SITE AT newshour.pbs.org. IN OTHER NS, A SOMBER MILESTONE WAS REHED IN THE WAR IN AFGHANISTAN TODAY. WITH THE DEATHS OFOUR AMERICAN SOLDIERS IN A MBING IN THE SOTH, 2009 BECAME THE DEADLIES YE FOR INTERNATIONAL TROOPS SINCE THE WAR BEGAN GHT YEARS AGO. LEAST 295 FOREIGN SOLDIERS HAVE ED THIS YEAR, ONE MORE THAN IN ALL OF 2008. IN SOUTHERN AFGHASTAN, AT LEAST 41EOPLE WERE KILLED WHEN A STRING OF FIVEAR BOMBS EXPLODED INANDAHAR. THE BBS WENT OFF SIMULTANEOUSLY IN THE CEER OF THE CITY. MORE TH 60 PEOPLE WERE WOUNDED. IN THE LATEST POLICAL DEVELOPMENTS IN AFGHANISTA THE FIRST PRELIMINARYESULTS FROM ST WEEK'S PRESIDENTIAL ELECTION TRICKD IN. WITH ONLY 10% OF THE BALLOTS TALLIED, PSIDENT HAMID KARZAI HAS ABOUT 41% OF THE TES. HIS MAIN ALLENGER, ABDULLAH ABDULLAH, IS CLOSE BEHINWITH NEARLY 39%. IF NEITHECANDIDATE WINS AN OUTRIGHT MAJORY, THEY'LL BE FORCED INTO A RUFF. THE TALIBAN IN PAKISTAN CONFIRMED FOR THE FIRST TIM THEIR LEADER IS DEAD. TWO TALIBAN COMMANDERS TOLD E ASSOCTED PRESS BAITULLAH MAHSUD DIED ON SUNDAOF WOUNDS SUFFERED IA U.S. MISSILE STKE ON AUGUST 5. PADRKFICIALS HADAL SAID FOR WEEKSAHSUD WAS LIKELY KILLED IN THAT STRIKE. TH TWO TALIBAN AIDES ALSO CONFIRMED AN EARLIE AOUNCEMENT THAT HAKIMULLAH MEHSUD NOW LDS THE PAKISTANI TALIBAN. IN IRAQ, A GROUP WITH LINKSO AL QAEDA CLAIMEDESPONSIBILITY FORAST WEEK'S DEADLY SUICIDE TRUCK BOMBINGS IN BADAD. LAST WEDNESDAY THE ASTS TARGED GOVERNMENT BUILDINGS AND KILLED MORE THAN 0 PEOPLE, WOUING HUNDREDS MORE. A STATEMENT FROM THE GROUP, WHICH CALLS ITSELF T ISLAMIC STATE OF IRAQ, SAID THEY INTENDED TO KILL IRI OFFICIS, AND EXPOSE "THE WEAKNESS OF THE GOVERNMENT." THE PRIME MINISTER OF BRAIN MADE HIS FIRST PUBL COMMENTS TODAY ON THE RELEASE OF TH LOCKERBIE BOMBER SCOTTISH OFFICLS LET ABDEL BASET AL MEGRAHI RURN TO LIBYA LAST WEEK ON WHAT THECALLED "COMPASSIONATGROUNDS." HE ISYING OF CANCER. GORDON BROWN CONDEMN THE HERO'S WELCOME MEGRA WAS GIVEN AT THEIRPORT IN TRIPOLI. BUT HE SISTED HE HAD NO INPUT IN SCOTLAND'S CISION TO FREE HIM.

>> HAVE TO TELL YOU THAT I WAS BO ANGRY AND IWAS REPULSED BY T RECEPTION THAT A CONVICTED BOMBER, GUILTY OF A HUGE TERRORT CRIME, RECEIVED ON HIS RETURN TO LIBYA. WHEN I M COLONEL QADDAFI OVER THE SUMMER, I MADE IT ABSOLUTELY CLEAR TO M THAT WE HAD ROLE INAKING THE DECISION ABOUT HIS FUTURE.

>> Ifill: SCOTND'S DECISION TO RELEASE MEGHI HAS COME UNDER HEAVY CRITICISMROM U.S. OFFICIALS, AND FR RELATIVES OF E 270 VICTIMS OF THE 1988 P AM 103 BOMBING. ON WALL STREET TODAY, OCKS HELD ONO THEIR RECENT GAINS WITH ENCOURAGING REPORTS ON CONSUMER CONFIDENCE D HOUSING. TH DOW JONES INDUSTRIAL AVERAG GAID 30 POINTS TO CLOSE AT 9539. AND THE NASDAQ ROSE SIX POTS 202 BUT FIRST AMILLIONS OF SCHL CHILDREN HEAD BACK TO CLS THIS WEEK, THE BACK PACKSILL BE STUFFED WITH NOTE BOOK PENCILSND HAND SANITIZER. WHILE TH NATION BRACES FOR A NEW OUTBREAK OF E H1N1 VIRUS, KNOWN AS SWINE FL STUDENTS AND ULTS ARE LEARNING ALL OVER AIN HOW TO WASH THEI HANDS. THE PRIDENT'S COUNCIL OF ADVISORS ON SKY EXPSE TECHNOLOGY RORTS CHILDREN D YOUNG PEOPLE ARE AT SPECIAL RI FOR INFECTIONS, PECTED TO PEAK IN D-OCTOBER. ITSCENARIO TO HALF THE U.S. POPATION COULD BE INFECTED. 1.8 MILLION AMERICANS MIGHT REQUIRE HOSPITALIZATION 0,000 OF THEM IN TENSIVE CARE. AN FOR 0 TO 90,000 PELE THE DISEASE COULBE FATAL. ONLY 36,000, MOST OF THEM ELDERLY, DIE FROM THE CONVENTION FLU EACH YEAR. FOR MORE I'M JINED BY DR. ANN SCHCHAT. AT THE CENTERSOR DISEASE CONTROL AND PREVENGS. WELCOME.

>> THANK YOU. >>DO THOSE NUMBERS SOUND RIGHT YOU, 60 TO 120 MILLION INFECTIONS 0,00 TO 90,000 OFTHEM FATAL?

>> YOU KNW, THE ADVISORS OFERED A PLANNING SCENARIO THAT WAS MEN BE USED TO TE THISERIOUSLY, SO THAT STATES AND LOL HEALTH DEPARTMENT,, THE PIVATE SECTOR, THE PUBL WOULD BE AWARE THAT THINGS COULD BE QUITE CHALLEING. BUT WE REALL CAN'T PREDICT EXACTLY HOW MUCH DISEASE HERE'S GOING TO BE THIS FALL AND WINTER. I CAN SAY WE'RE WORKING HA TOBE PREPARED AND REY TO PO. IFZ SO IT'S NOTECESSARILY A REDICTION?

>> THEY USE THE WORDS A PLANNING SCENARIO, RIG.

>> Ifill: HOW AOUT, EVEN IF THERE'S POSSIBILITY OFHEY SAY 1.8 MILLION HOSPITALIZATIONS, SAY IT' ONLY A MILLION HOSPITALATIONS. SOUNDLIKE A LOT. IS THE U.S. HOSPIL SYSTEM PREPARED FOR THAT RATE OF ADISSION?

>> YOU KNOW, WE'RE WORKNG CLOSELY ACRO GOVERNMENT TO STENGTHEN THE PREREDNESS OF THE HOSPITAL SYSTEM AND THE MEDICAL COMMUTY IN GENERAL. THE GOVERNMT HAS RELEASED FUNDS TO STRENGTHEN HOSPITAL PREPARNESS AS WELL AS STATE AND LOCAL HEALTH PREPAREDNESS, AND WE'RE CARRYG OUT A NUMBER O OUTRCH ACTIVITIES THIS SMER TO WORK CLOSELY WITH THE MICAL COMMUNITY AND THEUBLIC HEALTH MMUNITY AS WELL AS COMMUNICATORS TO ALLY BE AS PREPARED AS POSBLE. THINGSOULD BE QUITE CHALLENGING, BUT WEE ALL IN THITOGETHER AND I THINK WE HAVE SOME TIME TO STNGTHEN FURTHER OUR PREPAREDNE EFFTS.

>> Ifill: THE ARE DIFFERENT KINDS OF PREREDNESS, PREVENTION ONE ARE THE THINGSE'VE HEARD SO MUCHBOUT,WASHING HANDS, TAKING CAREO STAY AWAY FROM ORK AND PLACES LIKE TAT IF YOU THINK YOU MA BE SICK. BUT THERE'S ALSO THIS QUESTION OF A VACCINE. HOWVAILABLE WILL THAT VACCINE BE I TIME TORY TO HEAD OFF SE OF THESE NUMBERS?

>> WE, IT'S IMPORTANT FOR PEOPLEO KNOW THAT DISEASE HASN'T GONE AWAY. WE CONTINUE TO SEE TRANSMISSIOTHIS SUMMER AND WE'RE CURRENTL AT HIGHER LEVELS OFNFLUENZA DISEASE THAN WOULD B EXPECTED FOR THIS TIME YEAR. BUT DO THI THAT OVER E NEXT SEVERALEEKS AS SCHOOL KIDS RETU TO CLASSES WE'LL SEE INCREASES. AND WE KNOW THATE WON'T HAVE VACCINE BEFORE SCHOOL KIDS ARE BACK I SCHOOL. THERE ALREADY BACK IN SCHOOL. SO WE HAVE A NUMBER OF WEEKS TO MONTHS WHRE WE'LL BE NEEDINGO USE OTHER INRVENTIONS. BUT WERE WORK, CAREFUY ON VACCINE DEVELOPMENT, TESTING AND PLANNING TO IMPLEMT THE VACCINATION PROGRA AT TIS POINT WE'RE EXPECTING TO BELAUNCHING A VOLUNTARY VACCATION PROGRAM IN THE MIDDLE OF TOBER. SO IT'S VE IORTANT BEFORE THEN FOR PEOPLE T REMEMBER THOSE IMPORTANT STEPS EY CAN TAKE, WASHING THEIR HANDS, STAYING HOME WHEN THEY'RE SICK, STAYING INFORMED OUT WHAT'S GOING ON. THE VACCINATION PROGM THOUGH WE ARE WORKING HARD T BE READY F. WE'RE EXPECTINDOSES TO BE ONLINE AND AVAILABL BY MID-OCTOR. ND THAT ADDITIONAL DOES WILL BE COMING OUT EVERY EK. AND WE'RE WORKINGLOSELY WITH THE PUBLIC HEAH SYEM AS WELL AS PRIVATE PROVIDERS TO FIND WAY TO REACH PEOPLE WHO ARE RECOMMENDED TO RECEIVE VACCINES.

>> Ifill: MID-OCTOBERS THE TIM THE, THAT IS THE PEAK TIME. WON'T THATE A LITTLE LATE FOR A VACCINE? ESPECIALLY IF YOU'RONE OF HE GROUPS LIKE PREGNT WOMEN FOR VERY UNG PEOPLE WHO ARE MOST AT RK.

>> INFLUEA IS VERY UNPREDICTABLE ANNONE OF US REALLY KNOW WHE DISEASE WILL PEAK IN ANYIVEN COMMUNITY. THERE'S THE SEASONAL FLU THAT WE D EXPECT TO CUR THIS YEAR, OFTEN THAT OCCURS BETWE DECEMBER AND MAY EVERY YEAR. WTHINK THE H1N1 VIRUS THAT MERGED THIS YEAR IS LKELY TO START TO INCREASE IN OCCURRENCE BEFORE THE SEASONAL STRAINS COMENTO PREVALENCE. BUT WE DON'T KNOWN ANY GIVEN COMMITY WHEN PEOPLE OH -- WHEN PEAK WILL OCR. AND WE LIKE TO REMIND POPLE THAT EVEN TIS THINGS AK, THAT MEANS 50% THE CASES THAT E GOING TO OCCUR HAVEN'T HAPPED YET. SO WE INK THERE'S ALOT WE N DO BEFORE VACCINE IS AVAILABLE AND WHEN VACCINE BECOMES AVAILLE TO LP PROTECT PEOPLE AND THE COMMUNITY.

>> Ifill: WESAW A LOT O SCHOOL CLING, A LOT OF UARANTINES, ESPECIALLY IN HER COUNTRIES, IN THE EARLIER OUTBREAK. CAN WE EXPT TO SEE TAT AGAIN THIS FALL?

>> WE STUDIEDHE SPRING SIATION AS WELL AS THE ITUATION IN THE SOUTHER HEMISPHERE AND HAVEEEN ABLE TO UPDATE OUR GUIDANCE TO SCHLS AND UNIVERSITIES TRY TO FIND A BANCE BETWEEN INTERVENTIONS TT WILL HELP D INTERVENTIONS THAT MIGHT BE MO DIFFICULT ON THE POPULATION. FOR THE CURRENT LEV OF SEVERITY OF WHA WE'RE SEING WITH THE H1N1 VIRUS, WEREN'T EXPECTING TH SCHOOL CLORES ILL BE THE GENERAL WAY INTERVENE. THERE ARE LIKELYO BESOME SCHOOL CLOSURE, BUT IN GENEL THERE ARE OTHER YS WE EXPECT THE DISEASETO BE HANDLED. E PRINCIPAL ONE O COURSE IS STAYING HOME WHEN YOU'R SICK. ANOTHER KEY MEASURE IS WASHING YOUR HANDS, CERING YOUR COUGH A SNEEZED AND STAYING INFORMED. SO WENOW THAT SCHOOLS E TAKING STES TO BE REA IF THEY DO IMMEDIATE T DISMISS STUNTS, BUT WE THI THERE A LOT OF THINGS THAT CAN HAEN WITHOUT THAT BEING NECESSARY.

>> Ifill: WHO CORS THE COST FOTHE DISRUPTION, WHETH IT' CLOSING SCHOOLS OR IN THE PRIVATE SECR, INDIVIDUALS STANG HOMEHO MAY NOT HAVE ENOUGH SICLEAVE AND LO PAY.

>> AT'S A REALLY IMPORTANT QUESTION. ONE OF THE VERY DIFFICULT THINGS ABOUT FLU IS THAT IT CROSSES ALL SECTO, EVYONE IS VULNERABLE TO GE FLU OR ITS COMPLICATIONS,AND EVERY SECTOR IS AFFECTED. IT'S NOT SOMETHING THAT ONLY THE HEALTH SECTOR S TO WORRY ABT, THE BUSINESS COMMUNITY, THE EDUCATN SECTOR AND SO FORTH ARE ALL ENGAGED. AND ACROSS GOVERENT WE' WORKING HARD TO ADDRESS THE POLICY ISSUES THAT REALLY MAKE IT CHALLENGINGOR PEOPLE TO STY HOME FROM WORK WHEN EY'RE SICK OR TO KEEP THEIR CHILDRENOME OUT OF SCHOOL. AN I KNOW THAT THE EDUCATI DEPTMENT IS RKING HAR ON WAYS TO HELP SCHOOLS MANAGE IS CHALLENGE. TIMES SCHOOLSRE PAID BASED ON THE NUMBER OF KID THAT ARE PRESENT OA CERTAIN DAY, A THAT MIGHT CAUSE DISCENTIVES FOR KIDS TO STAY HO WHEN THEY'RE SIC SO THERE'S LOT OF WORK GNG ON BEHIND THE SCENES TO TRY TAKE CARE OF SOME OFTHOSE CHALNGES THAT ARE REALLY :>> Ifi: DR. SCHUCT, THANK YOU F YOUR THOUGHTS.

>> MY PLEASUR

>> Ifill: NOW, A STORY ABO THE GLOBAL TEAT OF DRUG-RESISTANT ALIA. SPECL CORRESPONDENT FRED DE SAM LAZARO REPTS FROM AMBODIA.

>> Reporter: IN THE FOREST ALONG THE BORDER WITH THAILAND, SCIENTIS HAVE SPOTTED EARLY SIGNS OF DRUG RESISTANT MALARIA THAT ULD THREATEN MILLIONOF LIVES FAR BEND THESE ISOLATEDILLAGES. BUT THEIR FIRST CHALLENGE IS FINDI PATIENTS. IT'S TOOK NEARLY TWO HOURS FOR A TEAM FROM THE REGNAL ENTER TO REACH THE VILLAGE, WHICH HAS SE SEVERAL DOZEN MALARIA CASES IN RECENT WEEKS. IS ANYONE YOU KNOW ILL, THEY AED? ASHORT WALK TO THEM TO TS 22-YR-OLD, SHE WAS TOO WK TO WO THE FAMILY' SMALL FARM FIELD. HAVE YOU BOND VOMITING? T INSIDE THEIR TINY HOME, HER 19-YEAR-OLD BROTER WASN'T EV-- WAS IN TOUGHER SHAPEWORKS A SEANG TEMPERATURE THAT ANG WITH NAUSEA AND VOMITING A MALARIA SYMPTOMS. BOTH SIBLINGS AGREED TO BE TESTED TO CONFIRM THE DIGNOSIS, BEFORE THEY GOT Y TATMENT. UNTIL W, HE HAD REFUSED AL HELP.

>> EVEN IF YOU GIVE H PILLS, IF YOU'RE NOT PING ATTENTION, HE'LL THROW EM OUT. REPORT HE EVEN REFUSED TO GET FREE TREATMENT AT THE HEAH CENTER BECAUSE HE'S AFRAID OF PILLS ANDNEEDLES. HIS SISTER DIDN'T GO BECAUSE IT CO TOO MUCH TOET THERE, AND H DIDN'T WANT TO LEAVE THE HOUSE UNGUARDED. THERE E LOTS OF REONS PEOPLE DON'T TAKE ADVANTAGE OF THE OFFER OF FREE CARE.

>> I DON WANT TO GO. THERE'S NONE TO TAKE RE OF THE HOUSE. I'M AFRAID TO LEAVE IT UNATTENDED FOR SO LONG.

>> Reporter: LIKE MOST PELE WHO GETILL AROUND HE, SH GOT SOME PILLS FROM AN AUNT WH BOUG THEM FROM A STORE. THIS IS A TYPICALEXAMPLE OF HODRUG RESISTANCE CAN BIN, A PATIENT DSN'T FOLLOW THE PRESCRIION, AND IN THIS SE TAKES LY A PARTIAL DOSE.

>> HAVE YOU TO TAKE FOUROSE, BUT THIS IS ONLY TWO DOSE.

>> Reporte SO SHE'S TAKIN T RIGHT STUFF, BUT NOT SUFFICIENT AMOUNTS. TAKING LESS THAN A FULL DOSE MEANS SOME PASITES REMAIN I THE BODY. WHEN THEY ADAPT AND BECO IMMUNE TO THE DRUG. THE CAMBIA HEALTH MINISTRY )QgTS ARE TOO OR TO AFFORD THE WHOLE DOSE

>> TH HAVE ONLY ENOUGH MONEY BUY --

>> Reporter: NOT ENOUGH FOR THE WHOLE COURSE?

>> YES. AND SOMETIMES TY GET BETTER, TH FEEL THA THEY DOT NEED MORE MDICINE, SO THEY TROW THE REST AWAY.

>> Reporter: OR THEY SAVE IT OR SOMEBODY ELSE, POSBLY.

>> SURE.

>> Reporter: ANOTH SORT OF PARTIA DOSING COMES IN COUNTERFEIT DRUGS, MOSTLY FR CHINA AND THAAND. THEY CONTAIN ONLY A FRACTION OF THE AIVE INGREDIENTS,O THEY CAN BE SOLD CHEAPL SOLD WITHO PRESCRIPTION, AND MOSTLY B PEOPLE WITH N TRAINING. THERE ARE QUALITY PROBLE EVEN IN PHARMACIES, LKE THIS ONE WETOPPED BY, IN MBODIA'S SECOND LARGEST CITY. I SSKED FOR MALARIA MEDICAONS. SO THIS IS AN ACQUIRED DRUG, IT'S ON THE SHELF. A CUSTOMER STOPP BY COLAINING OF DIARRA, SHE' FOLLOWED ONE ANTIBIOC PILL, THERE'S NO GUARANTEE SHE'LL RETURN F THE REST OF WHAT OULD BE A THREE-PILL REGIMEN.

>> SHE JUSTCAME AND TO ONE PILL. MAYBE THEY TAKE ONE TIME, AND THEN WHEN THEY DON'T FEEL BETR THEY COME BACK.

>> Reporter: THE MARIA RASITE FIRST BAME RIST TAB IN THE70s,THEN ATHER MICINE. NOW THE ARE AT LEAST NINE RESISTANCE TOHE MOST EFFECT CUENTLY ON THE MARKET.

>> WE HAVE TO THINK WHAT OUR NEXT STEPILL BE.

>> Reporter HE CO-AUTHORED ONE STUDY HE'S WITH THE U.S. MY, ONE OF SEVERAL INTERNATIONAL AGEIES WORKING ON RENEWED EFFORT TO CONTAIN THE PROBLEM HERE. IT'S SPONSORED LARGELY BY THE BILL AND MLINDA GATES FOUNDATION. THE FOUNDATION IS ALSON UNDERWRIT OF THE NEWS HOU

>> IN VERY FEW INSTANCES THO PASITES DO APPEAR TO RETURN, AND THEY APPEAR TO RETURN DESPITE THE FACT TT THERE ARE AEQUATE BLOOD LEVELS OF ANTI-MALARIAL IN THE OOD. WE'RE NCERNED THAT THE RESISTANCE IS OCCURING TO THE LAST WIDEREAD AN-MALARIAL AVLABLE. REPT THERE'S NOBACKUP DRUG IF TIS ONE FAILS.

>> THERE ARE DRS IN DEVELOPMENT AT THE MOMENTBUT THE'S NO BACKUP THAT'S READILY ACCESBLE AT THIS POINT.

>> Reporter: THE STAKES ARE HIGH IN CAMBODI, WHERE ABOUT 200 PEOPLE DD FROM MALARIA LAST YEAR. T THEY ARE HUGE IN AFRICA, WITH THOANDS OF MOST ILDREN DYING EVERY DAY. THE HISRY OF PREVIOUS MALAA DRUGS THAT BECAM INEFFECTIVE IS A DISTURBG GUIDE. fRzPREADO2, TO RICA, D IT'S BEEN DOCUMENTED STUDIES. IF THAT PATTRN HOLDS TRUE AND THERE'S NO REASON TO EXPECT IT WOULDN'T BEUSE OF GLOBAL TRAVEL TODAY THAT TT'S THE PATTERN THAT'S THE CONCERN TO SPREAD. THERE'S AN EFFORTS ON TRYING TO CONTAIN PARASITES.

>> porter: THE EFFORT INCLUDES DISTRIBUTING BED MATS KEEP OUT MOSQUOES, AND STEPPING U SCREENING. BUT MT IMPORTANTLY THE SCIENTISTS WANT TO LIMIT THE PARASITE'SXPOSURE TO THE UG, TO PSERVE ITS EFFECTENESS. SO THE GOVERNMENT HAS BANNED ITS USE AS A SLOW LOW DRUG, IT'S ALLOWED ONLY IN EXTREME CASES IN HEALTH CENTERS. ALL OTHERS ARE TO USE A BLEND OF OLDER DRUGSHAT ARE NO LONG AS EFFECTIVE BY THEMSELVES, BUT WORKIN COMBINATION

>> THE GOOD THI ABOUT THIS IS IT COULD BE IF IT LEGITIME, TREATABLE, BUT 'S NOT PART OF THE NIONAL REGIMEN, SO IS AN EXAME OF H PRIVE SECRS UNRULAR ITED IT COULD BE GOOD, COULD BE BAD.

>> Reporter: YOUUST DON KNOW IF THIS IS THE REAL TICLE. HOWEVER, GIVE THE REMOTE REGION, THE LACK OF LAW ENFORCEMENTTHERE'S NO GUARANTEE IT W'T COME IN FROM ILLEGAL SOURC. >>HAT MANUFACTURERS, WHAT SOME ILLICIT MANUFACTURERS WILL DO IS PUT A SMALLAMOUNT OFTHE ACTIVE DRUG IN THEIR PRODUCT THAT IT CAN PASS SIMP TESTS AND SO ON, AND ALSO HVE SOME EFFECT. ANSELL THOSE AT SUBANTIAL PROFIT. SO THE'S A LOT OF STIMULUS TO DO THAT. THERE HAS BEEN AN EFFORT WITH INTERNATNAL POLICING AGENCIES WITHEALTH AGENCIES AND SO ON, TO CLAMP DOWN ON THIS FLOW OF DRUGS ACROS THE BORDER, AND AT'S ONE WAY THAT S BEEN AT LEAST MODERATEL EFFECTIVE.

>> Reporter: TER THIS YEAR IN EUROPEANPROGRAM, NTERNATIONAL AGENCIES HERE HOPE TOAKE A DIFFEREN TACK AGAINST THE IICIT DICINES. A PRICE W TO RUN THE COUNTERFEITERS O OF BUSINESS.

>> WE HAVE A NEW MECHANISM WHICH WOUL PUT HEAVILY SUBSIDIZED MLARIA DRUGS ON TH MARKET ANDLLOW THEM TO BESOLD AT VERY LOW PRICES, A FRACTION OF WT THEY ARE CURRENTLY BEING SOLD FOR, AND THEREFORE FLOD THE MARKET WITH HIGH QUALITY DRS, A WILL PCES, THAT CANCTUALLY UNDERCUT THE ILLEGALDRUG TRADE.

>> Reporter: T PLAN ALSO CALLS FOR TRAINING LOCAL VLAGE VOLUNTEERS TO DINOSE ALARIA CASES, UTILING RAPID ST KITS THAT ARE NOW AVAILABLE. >TAKE A LITTLE BLOOD. AND ERE'S A SOLUTION YOU PUT RE INTO THE BLOO, IT TH MY GREATERE. MIGRAS HERE. LIKE A SIMPLE PREGNANCY TEST.

>> Reporter:OME INDIVIDUALS ARE REACHED FAR ONER.

>> MAKE RE TO TAKE ALL THE PILLSE HAVE GOOD AFTERNOON YOU. >>eporter: AS THE TEAM SPECTED, THERE WAS A T OF THE DEADLY RASITE HER BLOOD. THE SISTER, BECAUSE SHE TOOK MEDICINE, H A LOWER LEVEL OF INFECTION. AFTER THEY HAD URGED HER TO TAKE ALL HER PIL AND IUED A DIRE WARNING ABOUT HER BROTHER. IF YOU CAN, YOU MUST TAKE HIM TO THEHOSPITAL. DO NOT WORRY ABOUT THE MONEY. HE DSN'T GET TREATMENT, HE'S GOING TO DIE. I DON WANT TO SCARE YOU, BUT THAT'S THE TRUTH. IF YOU DIDN'TTAKE THE PIS, YOU WOULD HAVE BE JUST LIKE HIM.

>> Reporter: THE STERN LK WAS ENOUGH TO COAX HI TO TAKE LEAST THE FIRST OF THE FOUR DOSES IN THEOMBINATION THAPY. FOR THE TEAM ITWAS ONE TINY STEP IN A VERY LONGOURNEY TO CONTAIN DRU RESTANT MALARIA AND A MUCH LONGER ONEO ERICATE IT I.

>> Ifill: N, IN WHAT'S TURNED OUT TO BE AN UNUSUALLRESTLESS AUGUST WHEN IT COMES TO DEBES ABOUT THE ECONOMY AND ALTH CARE, WE TN TO REPORTS FROM AROUND THE NATION. JEFFREYROWN HAS OUR SURVEY. >>rown: FOR AT, WE'VE ASKED FOUR URNALISTS AND HOSTS OF LOCAL PBS PUBLIC FAIRS PROAMS TO JOIN US. FREDERICA FRIBE, OF "HERE AND OW" ON WISCONSIN PUBLIC TELEVISION. GENE GRANT, OF "NEMEXICO IN FOCUS" ON KE IN ALBUQUERQUE. NELL McCORMACK OF "SMARTALK" ONHARRISBURG, PENNSYLVANIA'S WITF. AND FROTAMPA, ROBORI, OF WE'S "FLORIDA THIS WEEK." WE TALK EARLIER ON THE OGRAM ABOUT BEN BERNANKE, HIS RECENT PRONOUNCENT THAT THE ECONOMY APPEARETO BE LEVELING OUT, EVE THAN AS HE CATIONED ABOUT SOME CONTINUING PROBLEMS. HOW DOE THAT JIVE WH WHERE YOU AR

>> WL, THAT'S WHAT THEY SAY KIND OF ON THE COA HERE IN THE HEAR LAND, JOB LOSSTILL REALLY HURTS. THIS WEEKE LEARNED TAT MERCURY MARINE, EXPECTS TO MOVE 2,000 JOBS OUT OF THE STATE OF WISCONSIN, NOWUR UNEMPLMENT RATE IS AT 8.7. BUT THERE ARE ME POCKETS IN IS STATE, PARTICULARLY THE REGION WHERE THE G. M. PLANT CLOSED THIS SMER, WHERE THE UNEMPLOYMENT RATE IS AT 18.5% SO IF THIS RECERY IS COMING, I THK WEHERE IN WISCONSIN SAY BNG IT ON.

>> Brown: NELL ABOM, WHAT'S PPENING THERE?

>> WELL,OVERNOR RENDELL THIS WEK SAID TAT BUSINESS EXPANSIONS ARE GWING AT A GREATER RATE TH BUSINESS CLOSINGS FOR THE FIRST ME IN AEAR WE HAVE MORE JOB ONINGS THAN WE HAVE JOBS BEING LOST BUT AT THE SA TIME HE CAUTIONED IS IS NOT A PREDTION FOR THE FUTURE. RIGHT NOW AT LOOKEDRETTY GOOD. BUT ATHE SAME TIME WE HE AN UMPLOYMENT RATE OF ABOUT 8.5% AND SIMIRLY WE HAVE RTAIN POCKETS LIKE THE PHILADELPHIA AREA THAT'S0% UNEMPLOYMENT. WE HA STATE COLLEGE, WHICH IS WHERE PENN STATE UNIVERSY IS, THAS ABOUT 5.8 BUT THERE ARE POCKETS ALL AROUND THE STATE WHE IT'S 9%, ALMOST 10%, AND THOSE PEOPLE ARE ALLY HURTING. SINCE DECEMBER OF 2007 THE BEGINNING OF THIS RECESSION PENNSYLVANIA HAS LOST 183,0 JOBS. SO IT'S SIGNIFICANT TOTHE PEOPLE WHO LOST THOSE JOBS OR WHO ARE ON E CUTTINGDGE. HARLEY DAVIDSON, BY BIG EMPLOYER HERE, TY'RE TALKING ABOUT LEING, THAT WOULD BE SUBSNTIAL HIT BOTH TO THE SEEK E AND TO THEEALITY O PEOPLE BEING UNEMPLOYED.

>> Brown: JE GRANT I ALBUQUEUE KE, ANY SIGNS LEVELING OUT?

>> I THINK WHAT WE'V GOT GOING HERE IS A COLE OF THINGS. WE'VE GOT SOME SIGFICANT REVENUE SHORT FALLS COULE WITH OUR STE COUGH FIRST TO THE TUNE OF 450 MILLION PLUS. WE'VE GOT MEDICAIDUTS BEING PROPOD ABOUT 3 MILLION. WE'VEOT UNEMPLOYMENT RATE STILL HOVERING AROUND 6%, SO WE'VE BEENRETTY STEADY. HOING HAS BEEN INTERESTING. ONE THE LOCAL REALTOR GROUPS RE IS PREDICTING, WE'RE SAYING THAT TH'VE GOT OUT 1,000 HOMES IN THE AREA THAT HAVE COME OFF THE MARKET. AND THEY'RE HOPING THAT THAT LL HAVE SOME HOPE FOR INCREASE INRICE A SOME POINT SOON. BUT IS ALWAYS INTESTING WHEYOU TALK ABOUT THINGS LIKE ECONOMIC CONFIDENCEN A PLACE LIKE NEW MICO. WE HAVE SOME VERY SERUS ECONOMIC CHALLGES, WE'RE TALKING ABOUT THE 45th STATE IN PER CAPITA INCOME. SOWHEN YOU TALK AUT CONFIDENCE AND SIS OF THINGS EIHER RIDING OR FALLING YOU GOTTA LOOK AND REALLY ROOT AROUND THE NOOKS AND CRANNY, UT IT ALL SEEMS TO COME OUT TO A BIT OF WASH RIHT NOW.

>> Brown: ROB LORI IN TAMP, WHAT ARE YOUEEING?

>> I FEEL LIKE I PLAYING "TOP THIS." BUT FLORIDA HAS A 10.7 UNEMPLOYMENRATE. FLORA WAS ALWAYS GOLDEN,N THE LAST 0 YEARS SINCE I LID HERE OUR ECONOMY H GOTT BETR AND BETR. THE LAST TWO YEARS WITH THE RECESSION WE'VE SEEN THAT OUR UNEMPLOYMENTATE IS OUTPACING THE NATIONAL AVERA BY A PEENTAGE. THE PILRS OF FLORIDA'S ECONOMY CLUDE TOURISM, CONSTRUCTION BOTH HOUSING A COERCIAL AND ALSO AGRICULTURE ANDWO OF THOS KILLERS ARE IN THEANK. IF WE DON'T SEE ANY SIGN THAT THERE GOING TO RECOVERY. WHEN FLIDA RECOVERSIT'S OING TO TAKE A YEAR BEYOND THE NATIONAL RECERY.

>> BrownLET ME STAY WI YO THS COMPETITION THAT NOBODY WANTS TO WIN I GUESS THAT YOU'RE REFERG TO --

>> RIGHT.

>> BrownTIGHT IT TIE IT OUT IN HEALTH CARE, BECAUSE TH IS THE MOST CONTENTIOUS DATE OF THIS SUMMER. HOW DO YOSEE THAT PLAYI OUT WHERE YOU AREND TIED TO SOME OF THE FACTORS WE'VE BEE TALKING ABOUT?

>> THERE'S A VIGOROUS BATE HE IN FLORIDA ABOUT HEAH CARE, AS THEREIS NATIONDE. ALL THE TOWN HALL MEETINGS WHETR THEY'RE STAFF OR HELD BY DOCRATS OR REPUBLICANS ARE PACKED WITH PEOPLE. FLORIDIANS WAN ANSWERS. HEREN FLORIDA, % OF FLORIDA'S POLATION IS WITHO HEALTH INSURANCE. HE NUMBERS HERE IN FORIDA E THE FOURTHIGH NERS THE COUNTRY. WE'VE GO A HUGE NMBER OF KIDS THAT AR WITHOUT HEALT INSURANCE. I WAS ATTHE TOWNHALL MEETING THAT WAS HOST BY A LOCA STATEEPRESENTATIVE AND ONE OF OUR CONGRESS MEMRS, KATHY ST FOR, A TENDED A FEW WEEKS AGO, AND THE BIG QUESTION FROM THE PROTESTERS OUTSID IS WE WANT DETAILS. WANT AN EXPLANATION, AND EY GOT NO EXPLANATION. I THINK SOME PEOPLE THERE WERE, WERE THERE TO DISRUPT IT. BUT SOME HAD LEGITIMATE QUESTIONS. THEY WT PRESIDENT OBAMA TO GIVE MORE DETAILS ABT WHAT HE WAS PROPOSING, AND I THINK PEOPLE WANT TO VE THAT DISCUSSIOAND THEY FEEL LIKE THEY'REOT GETTING IT.

>> Brn: ARE YOU SEEING SOMETHING LIKE TT WHERE YOU E?

>> LL,ERTAINLY THERE ARE THESE TOWN HALL MEETINGSEING HELD BY MEMBERS OF CONGRESS ALL ACROSS THE STATE, AND T ONE I ATTENDED S RAUCS, TO SAY THE LEAST. AND POPLE DO WANT DTAILS. THE PEOPLE I SAW AT THE MEETING I WENT TO WAS IN A REPUBLICAN DISICT, AND I WOULD S BETTER THAN HALF THE PEOPLE THERE WERE OPPOSED, AND THEN THEY WRRY ABOUT THINGS LIKE HOW MUCH ANY HEALTHARE PLAN, PARTICULARLY THE PUP OPTION, MY COST. THEY WORRY ABOUT MANDATED CARE. THEY WORRY ABOUALL THE KINDS OF THINGSHAT WE HAVE HEARD. HOVER, THERE WERE PLTY OF PEOPLE THERE, PARTICULARLY THE UNEMPLOYED, THA WERE VERY ABOUTED IN SO KIND OF A PUBLIC OPTION, AND VE MUCH WANTING HEALTH CAR REFORM. I SHOULD SAY, THOUGH, AS OPPOSED T FLORIDA TAT WE'VE JUST HED, WISCONSIN HAS A VERY HIGH RATE OF PEOPLE WHO ARE INSURED. IN FACT, SECOND ONLY TO MASSACHUSETTS, LES THAN 5% OF THE PEOPLE THE STATE OF SCONSIN DO NOT HAVE HEALTH INSURANCE. AND AT'S BECAUSE WE HAVE THESE STATE PROAMS THAT GET FEDAL WAIVER WHERE BY PEOE OF CERTAIN INCOMES CAN HAVE ACCES TO HEALTH CARE. SO IN WISCSIN SPECIFICAY, THIS DEBA COMES AROUND MUCH LESS ACCE AND MORE ABOUT THE COST OF HEALTH CARE, WICH EVERYONE IS CONCERED ABOUT FROM SMAL BUSINESSES TO LARGE BUSINESSES, TO GOVERNMTAL ENTITYS.

>> Bown: NELL ABOM IN HARSBURG, WHAT ARE YOU HEARING, IS I UNCTAINTY, IS IT FE OVER WHAT CHANGE MIGHT BRING?

>> I THI THAT'S CERTAINLY IT. U'VE SEEN SENATOR SPECTER AT HIS TOWNEETINGS HAS BEEN BOOED BUT IT WAS IN LEBANON COUNTY, WHICH WENT FOR JOHNcCAIN BY 20 POIS SO, HE SHOULDN'T HAVE BEEN PRICEDHAT THE PSIDENT'S PLAN RAN INTO TROUBLE HERE. PENNSVANIA HAS THE THIRD HIGHEST RCENTAGE OF SENIORS, PEOPLE OVER THE AGE OF 60. SO THESE FOLKS HAVE INSURANCE. THEY'RE HAPPY, PREY MUCH, WITH WHAT THEY HAVE. THEY FEARHE UNKNOWN. THEY FR SOME OF THE THING THAT HAVE BEEN SAID OUT THERE ABOUT YBE THEY WOULD BE LAST ONHE LIST OF GETTING SERVICES. SO THE'S A GREAT DEAL OF UNCERTAIY THERE. THE OTHETHING YOU HAVE TO CONSIDER IN PENNSVANIA, WE HAVE ONE OF ONLYTWO STATES THAT STIL DOES NOT HAVE A STATE BUDGET. THAT FACT TAT GOVERNMENT SEEMS NOT TO ABLE TO PERFO THE CORE FUNCTION, TO PASA BALANCED BUDGE EVERY YEAR, THEYAVEN'T BEEN AB TO DO IT. WE'RE IN DAY 57 PEOPLE DOT THINK GOVERNMENT CAN FUNCTION,AND IF YOUE COMING TO THEM AND SAYING WE HAVE A GOVERNMENT PN TO PROVIDE HEALTH INSURANCE, TO CHGE FUNDAMENTALLY THE HEALTH CARE SYSTEWE'VE HAD FOR THE LAST 6 YEARS,EEL ARE NOT RDY TO BUY IT YE AND THAT'S I THIN WHAT THESE ELECTED OFFICIALS ARE EXERIENCING ACROSS THE STATE. BOB CASEY HLD A FORM UP ON HEALTH CARE, HE DI'T GET THAT KIND OF RECEPTION. WE'LL SEE WHAT KIND OF RECEPTION HE TS. BUT THOSE AR SOME OFHE FACTORS THA AREUNDERLYING NCERTAINTY AND CONCERN ABOUT THIS PLAN.

>> Brown:OU'RE IN A TATE WHERE THE FEDERAL GOVERNNT HAS A FAIRLY LARGE ROLE IN THE ECONOMY AND MANY PEOPLE'S HEALTH CARE, I GUESS. THROU VETERANS, NATIVE AMERICANS.

>> INDIAN HEALTH RVICES, ABSOLUTY, IT'S HUGE, LIKETO THE TUNE OF 40 O OF WORKING NEWMEXICANS ARENDER SOME KIND OF GOVERNMENT RUN HEALTH CARE PLAN SO YOU DON'T S A LOT OF SENIORS WITH SIGNS TAING ABOUT GETTING THE GOVERNMENT OUT OF THEIR POCKET WHILEHEY HAVE MAYOR MECARE CARDS IN THEIR WALLETS, THAT DOESN' ITE PLAY HERE. HOWEVER, IT'S AN INTERTING SIUATION. YOU'VE GOT, GOSH, LIKE I SA FORE, MEDICAID IS AN ENORMOUS PART OF NEW MEXICO'S HEALTH CAR PICTURE. AND SENATOR BINGHAM, A SENIOR SENATOR IN NEW MEXICO A TOWN HALL MEETING YESTERDAY, TAT WAS RA00 AL AND CALM, AND PEOPLE HAD SE IERESTING QUESTIONS. D THE BIG PUSH HEREOW IS FOR DETAILS. A LOT OF T TOWN HALLS HERE, WE HAVEHREE FRESHMAN COGRESSIONAL MEMBERS, SENATOR UDALL HAS HIS FIRST WN HALL TOMORROW IN THEOUTHERN PART OF THE STATE. BUT EVERYONE STILL TALNG IN THE BROAD STROKESOF IT, AND FOS HAVE BEEN TRACKI IS CLOSELY, THEY GET IT, THEY'REOT READY FOR PLATITUDES THEY'RE READY FOR DETAILS. SO YOU CAN IMAGINE WHAT WOULD HAVE BEEN LIKEO HAVE AN ACTUAL GANGF SIX MEMBER. ONE OF THE THINGS THAT S INTERESTING ABT THE TOWN HALL WASHE FACT THAT H SAID A COUPLE OF ITERESTING THINGS. HE QUITE CALMLY IN HIS O INTERESTING WAY SAID HE WOUL BE SOMEWHAT CONSIDERT OF THE IDEA OF GNG TO RECONCILIATION TO GET THIS DONE. I BELIEVE H MIGHT BE THE ONLY GANG OF SIX MBER TO DATE TO GO ON THE RECORD TO TALK ABOUT RECONCILIATION AS OPTION. OTHER THINGS THATAME UP, THE SENATORADE IT CLEAR TH HE WOULD PREFETO SEE SOME OER THINGS THAT WERE PROBMATIC, BUT BLIC HEALTH CARE OPTION IS THE BIG ISSUE, OF COURSE. AND ALL THREE HOU MEMBERS HERE ARE SPORTIVE OF IT. HE HAS MADE IT CLEAR THAT IF THAT IS WHAT IT'S GOING TO TAKE, MEING NOT HAVI A PUBLIC OPTION AS PAROF THE FINAL BILL CING OUT OF THE SENATE, HE CLD GO THERE, BUT HI PREFERENCE WOULD BE TO VE A PUBLIC OPTION, WHICH OF COSE PLAYED VERY WELL HERE. FOLKS HERE IN THIS STATE WHO ARE DER SOME KIND OF PUBLIC PLAN IF YOU WILLOR THEIR HEALTH CARE COVERAGE NOW SO PEOPLE ARE COMFORTABLE WITNESS THEY GET IT. IT'S NOT DEMONIZED. GOVERNMENT HEALTH CARE IS T DMONIZED TEN IT T HERE. I THINK THAT MIGHT BE AN ABUTING THING FOR THE COUNTRY TO WATCH A THIS MOVES ALONG.

>> Brown WE WILLEAVE IT THRE. THANK YOU ALL VERY MUCH.

>> Ifill: FINALLY, THE EXTRAORDINARY TALEF ONE OF THE WORLS MOST FAMOUS BRAINS. THAT'S THE CUS OF TONIGHT'S PREMIERE OF OVA SCIENCE NOW." A WARNING: THE ARE EXPLICIT MEDICAL IMAGES IN THE EXCETS WE ARE ABOUT SHOW YOU.

>> Reporter: THIS THE BRAUN THAT ME THAN ANY OTHER IN HISTORY S AOWED SCIENTISTS TOAKE SENSE OF YOUR BRAN. FOR 82 YEARS IT RESIDED IN THE HED OF A MAN NAED HENRY GUSTAVE MULLISOM, BETTER KWN AS H. M., HE WAS PERHAPS THE MOST STUDIED PATIT EVER. AND THATIDN'T END WHEN HE DD LAST YEAR. WITH H.M.'S PRMISSION, THE DOTOR WENT TO WORK DISSECTIN HIBRAIN INTO 3,000 SLICES.

>> YOU C IMAGINE THE BRN BEING LIKE A BOOK. THE SLICES A THE PAGES OF THIS BOOK. THE SLIS ARERANSPARENT, SO YOU CNOT REALLY SE ANYTHING, UNT YOU USE LOT OF OBSCURE CHEMICAL PROCESSES TO REAL THE FEATURES OF T TISSUE. EVENTUALLY THE ENTI BOOK WILL BE COMPLELYSTAINED, AND THEY LL TELL US THE STORY OF THIS BRAIN.

>> Reporter: IT'S A STORY THAT BEGINS WITH EPILEPSY. ILEPSY SO SEVE TH BY 1953, H. M HAD REACHED HIS BREAKING POINT.

>> HE HAD TO STOP WORKING BECAUSE OF THE FREQUENCY OF SEIZURES,T WAS JUST T DANGEROUS. SO HE WAS BASICALLYT HOME WITH HIPARENTS, HIS LIFE WAS ON HOLD.

>> Reporter:NESPERATION, H. M. LET SURGE ON WLIAM SCVILLE REMOVE SLIVE OF BRAIN ON EITHER SIDEOF HIS HEAD, EACH CONTAINING A SEA HORSE SHAPED STRUCTURE CALLED A HIP BOWCAMPUS. THIS MIGHT HAVE SEEMED REASONABLE AT TIME WHEN WE KNEW ALMOST NOTHING AUT MORY. AND IT DID QUIET HIS SEIZURES. THOUGH AT A TERRIBLE COS.

>> DOOU KNOW WHAT YOUID YESTERDAY? NO, I DON'T.

>> HOW ABOUT THIS MORNING?

>> I D'T KNOW. I DON'T, I CAN'T TELL YOU BECAUSE I DON'T REMEMBER.

>> Reporter: H. M.'S CONDION MHT HAVE SEEMED LIKE SIMPLE DEMENTIA. BUT AS THE NEUROSCIENTIST DISCOVERED, I WAS ANYTHING BUT. HE WOULD SAY RIGH NOW IT'S AT LIKEWAKING FROM A DREAM, RIGHNOW EVERYTHING IS CLEAR. BUT WHAHAPPENED JUST BEFOE?

>> Reporter: H. M. A NORMAL I. Q., HE COULDRACK JOKES, SOLVE PUZZLES, EVEN TO SOME EXTENT REMEMBER. SO H. M. COULD REMEMBER EVERYTHING TT HAPPENED, PRIOR TO THE OPERATION. HE COULD REMEMBER THE TRAA OF ISA CHDHOOD, HE COULD REMEMBER GOING TO SCHOOL, WORKI IN THE ASSEMBL PLANT. Reporter: WHAT HE COULDN'T DO WASOLD ONTO NEW NFORMATION FOR MORE THAN A FEW MINUTES. IN A MOMENT OFNSIGHT, MILLNE CONCLUDED THE HIPPOCAM PUS MUST MAKE LONG-TERM MEMORIES OUT OF SHRT ONES.

>> ITHOWED THAT THE ABILL TOY TO ESTABLISHEMORIES IS LOCAL YEARSED TO THIS TINY AREA IN THE BRAIN.

>> Reporr: F. H.M. HAD CONTRIBUTED NOTHING RE, HIS FAME WOULD HA BEEN ASSED. BUT HE WOD GO ON INSPIRING DISCOVERIES FOR DEDE. THE NEXT INVOLVED PEIL, A MIRROR D AGAI BRENDA MILLNER.

>> SHE DID THIS BRILLIANT TEST WHICH HE HAD H. M. DRAW THE OUTLINES A STAR, WITHOUT LOOKING AT THE STAR,UT OKING INTO AIRROR.

>> Rorter: IT'S RD AT FIRST TO DRAW WIIN THE LINES. BUT COULD H. M., LIKE PEOPLE WITH RMAL MEMORY, LEARN TO DO IT WITH PRACTICE? AFTERHREE DAYSND TEN TRIALS, HIS PEORMANCE WAS NEARLY PERFECT

>> WELL, HE SAID I THOUGH THIS WOULD BE DIICULT, BUT IT LOOKAS THOUGH VE DONE PRETTY WELL HEAD NO MERY OF ALL THESE LEARNG TRIALS THAT HE'D BEEN TOUGH, AND THE BEAUTIF LEARNING. THAT WAS THE REAL CONTRAST.

>> Repter: SO, H. M COULD REMEMBER A MOTO SKILL, BUT NOTRECALL A FACT OR AN EVT. IT WAS A KEY DISCOVE, BECAE IT SHOWED THERE WERE DIFFERENT KDS OF MEMORY DEPENDT ON DIFFERENT PARTS OF THE BRAIN.

>> Ifill:

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>> Ifill: AGAIN, T MAJOR DEVELOPMEN OF THE DAY. PRESINT OBAMA NOMINATED THE CHAIRMAN OF THE FERAL RESERVE, BEN BERNANKE, TO A SECONTERM. AND A STRING OFAR BOMBS EXPLODED IN KANDAHAR, AFGHANTAN. AT LEAST 41 PEOPLE WERE KIED AND OR 60 WERE INJURED. WE'LL SEE YOONLINE, AND AGAIN HERE TOMORROW EVENING. I'M GWEN IFILL. THANK YOU, AND GOOD NIGHT. MAJOR FUNDING FOR THE NEWSUR WITH JIM LEHREIS PROVIDED BY: CHEVRON. INTEL. SUPPORTINMATH AND SCIENCE UCATION FOR TOMORROW'S INNOVATORS. ANBY BMSF. AND THE WILLIAMND FLORA HEWLETT FOUNDATION, WORKI TO SOLVE SOCIALND ENVIRONMENTAL OBLEMS AT HOME AND AROUND TH WORLD. AND WITH THE ONGOI SUPPORT OF THESINSTITUTIONS AND UNDATIONS. AND... THIS PROGRAM WAMADE POSSIBLE BYHE CORPORATION FOR PULIC BROADCASTING. AND BY CONTRITIONS TO YOUR PBS STATION FROM VIEWERS KE YOU. THANK YOU. Captioninsponsored by MacIL/LEHRER PRODUCTIONS Captioned by Media Access Groupt WGBH access.wg.org