The NewsHour With Jim Lehrer : WETA : November 11, 2009 7:00pm-8:00pm EST; The NewsHour With Jim Lehrer

Captiong sponsored by cNEIL/LEHRER PRODUCTIONS

>> Lehrer: GOOEVENING, I'M JIM HRER ON THE NEWSHOUR IS WEDNESDAY THE LEAD STORY, SOMBER CEREMONIES ON VETENS DAY AS PRESIDENT OBA CONSIDERS SENDI MORE TROOPS TO AFGHANISTAN. KWAME HOLMAN HAS OUR COVERGE

>> WE CL THIS AOLIDAY, BUT FOR MANY VETERANS IT'S ANOTHE DAY OFEMORIES WILL THATRIVE THEM TO LIVE THE LIVES EACH DAY ASEST AS THEY POSSIBLY CAN.

>> hrer: THEN, AFTER THE OTHER NEWS OF THE DAY. JEFFREY BROWN EXANES PROPOSALS FO MORE REGULATION OF BANKS AN OTHER FINANCIALNSTITUTIONS. GWEN IFILL LOOKS AT 10 ATES IN BUDGET OUBLE. PLUS, TWO TAKES ON POST TRAUMATIC STSS DISORDER. BETTY ANN BOER TELLS THE STORY OF A MANE AND HIS FAMILY COPING WITH THE ILLNESS...

>> THE Y IT'S, SOUNDS, SMELLS-- ANYTHING CATRIGGER IT. CAN GETS A HOLD OFOU AND WON LET YOU GO AND JUSCONTROLS YOU.

>> Lrer: AND JUDY WOODRUFF TALKS TO MENTAL HEALTH PROFESSIONALS WHO HAVE COUNSED RETURNING TROPS MAJOR FUNDING FOR E NEWSHOUR TH JIM LEHRER IS PROVIDED BY

>> WHAT THE WORLD NEE NOW IS ENERGY. THE ENGY TO GET THE ECONOMY HUMMING AGAIN. THE ENERGY TO TACKLCHALLENGES LIKE IMATE CHANGE. WH IS THAT ENERGY CAME FROM AN ENERGY COMPANY? EVYDAY, CHEVRON INVESTS $62 MILLION IN PEOE, IN IDEAS-- SEING, TEACHING, BUILDING. FUELING GROWTH AROUNDHE WORLD TO MOVE US ALL AAD. HIS IS THE POWER OF HUMAN ENERGY. EVRON.

>> WHAT MAKES US AENGINE FOR THE ECOMY? PLANTS ACRO AMERICA. NEARLY00,000 JOBS CREATED. WE SEE BEYOND CARS. T NATIONAL SCIENCE FOUNDATI. SUPPORTING EDATION AND RESEAH ACROSS ALL FIELDS OF SCIENCE AND ENGINEERING. AND WITH THE ONGOING SUPRT OF THESE INSITUTIONS AND FOUNTIONS. AND... HIS PROGRAM WAS MADE POSSIBL BY THE CORPORATI FOR PUBLIC BROADSTING. D BY CONTRIBUTIONS TO YOUR S STATION FROM EWERS LIKE YOU. HANK YOU.

>> Lehrer: THIS WAS VETENS DAY AND MANY ERICANS PAUSED TO REMEMBER THE WHO HAVE SERVED IN UNIFORM. THE ONGOING WARS IN AFGHANTAN ANDRAQ, AND THE SHOOTINGS AT FORT HOOD, TEX LENT SPECIAL MEING TO CEREMONIES IN WASHINGTON AND ELSEWHERE. NEWSHOUR CORRESPDENT KWAME HOLMANAS OUR LEAD STORY REPORT.

>> Holman: A CO, STEADY RAIN FE ON THE WASHINGT AREA AS PRESIDENT OBAMA TOOKART IN TRADIONAL CEREMONIES AT ARLINGTONATIONAL CEMETERY. HE LAID WREATH AT THE TOMB OF THE UNKNOWNS THEN LIENED AS THE STRAINS OF TAPS SOUNDD. ♪ FROM THERE,HE DIGNITARIES MOVED TO THE CEMETERY'MEMORIAL AMPITHEER, WHERE A LARGE CROWD WAID. SECRETARY OF VETERANS AAIRS, ERIC SHINKI.

>> FROM LEXINGT AND CONCORD TO ANTIETAM AND GETTYSBG, TO THE MANE RIVER AND BASTOGNE, IWO JIMA, THE CHOSIN RERVOIR, THE IA DRANG VALLEY,HE SANH TO FALLUH AND IRAQ AND THE SHAH- I-KOT VALLEY IN AFGHISTAN, AND COUNTLESOTHER PLACES, THE WARRIORS WE HOOR TODAY HAVE EARNED THE LOVETHE RESPECT, AND THEDMIRATION OF A GRATEFUL NATION.

>> Holman: THE ESIDENT SPOKE OFHOSE KILLED JUST LAST WEEK ON AMERICAN SOIL AT FT HOOD, TEXAS.

>> YESRDAY I VISITED THE TROOPS AT FORT HOOD. WE GATHERED IN REMEMBRANCE O THOSE WE RECENT LOST. WEAID TRIBUTE TO THE LIVES THEY LED. THERE W SOMETHING THAT I SAW IN THEM, SOMETHING THAT SEE IN TH EYES OF EVERY SOLDIER AND SAILOR, AIRMAN, MARINE AND COASTGUARDSMATHAT I HAVE HAD THE PRIVILEGE TO MEET INHIS COUNTRY AND AROD THE WORLD, AND AT THING IS DETERMINATION. >>olman: AND, MINDFUL OF ONGOG WARS, MR. OBAMA ADDRESSED MILITARY FAMILIS AS WELL.

>> TO THE HUSNDS AND WIVES BAK HOME, DOING THE PARENTING OF TWO; TO THE PARTS WHO WATCH THEIR SONS AND DGHTERS GO OFF WAR AND THE CHILDREN WHO WDER WHEN MOM AND DAD IS COMING HOME; TO ALL OUR WOUND WARRIS, AND TO THE FAMILIES WHO LAID A LOVED ONE TO ST. AMERICA WILL NOT LET Y DOWN. WE WILLAKE CARE OF OUR OWN.

>> Holman: WHEN THE OFFIAL OBSERVANCES HAD ENDED,HE PRESIDENT A FIRST LADY DERTED FROM TRADITION, WALKING AMIDHE WHITE MARBLE HEADSTONES IN STION 60 RESTING PLACE FOR THE MOST RENT WAR DEAD THOSE KILD IN IRAQ AND AFGHANISTAN. MROBAMA SPOKE WITH MOURNERS THERE VISITING THE AVES. THE PRESIDENT ALSSTOPPED AT THE GRAVE OF ARMSPECIALIST ROS MCGINNIS, A MEDAL OF HONOR WINNER. HE DIED IN IRAQ IN 2006, AER THRING HIMSELF ON A LIVE GRENADE, SAVING THE LIS OF 4 OTHER SOLDRS. INLL, MORE THAN 4300 AMERICANS HAVE DIEIN IRAQ SINCE THE WAR THERE BEGAN IN 2003. AND MORE TN 900 HAVE BEEN KILLED FIGHTING THE AFGHAWAR SINCE 2001. THAT NUMBER GW TODAY WHEN MILITARY DIVERS COVERED THE BODY OF A U.S. SDIER IN A RIVERN WESTERN AFGHANISTAN. HE DISAPPEARED LA WEEK. NEAKABUL, AMERICAN AND COATION FORCES MARKED THEIR LOSSES AND CONTINUEDHALLENGE - WITH TIR OWN VETERANS DAY CEREMONY.

>> WE PAU TODAY AS A COALITION COMMAND JUST AS OUR NATIO WILL PAUSE AT HOME TO REMEMBER THOSE WHO HAVE SERVED. TO HONOR THEIR SERVICE AND TIR MANY SACRIFICE TODAYWE ALSO ACKNOWLEDGE THOSE CURRENTLY SERVING HE IN AFGHANTAN IN IRAQ AND AROUND THE WORLD.

>> Holn: THE WAR IN AFHANISTAN ALSO WAS AT CENTER STAGE LATER AT THE WHITEOUSE WHERE PRIDENT OBAMS ENTIRE NATIOL SECURITY TEAM CONVENED TO DISCUSS STRATEGY. IT CAME AMID REPORTS IS CLOSE A DECISION TO SEND THOUSAND MORE TROOPS. T THERE WAS ALSO TIME TOD TO REMEMBER HEES OF THE PAST. THE NEW YORK CITY VETENS DAY PARADE FEURED NAVAJO INDIAN CODE TALKERS OF WORLD WAR II THEIR ELITENIT IN THE U.S. RINES PLAYED AN INSTRUMENTAL ROLE IN DEATING THE JAPANESE AT IWO JIMA AND OTHERATTLES IN THE PIFIC THEATER. 13 OF T 50 SURVIVING CODE TALKERS TOOK PA IN TODAY'S PARE, FOR THE FIRST TIME.

>> Lehrer: YOU CAN LIEN TO 86-YEAR OLNAVAJO CODETALKER SAMUEL SMITH SCRIBE HIS EXPERIENCES IN WORLD W II. THAT'S OUR WEB SITE NSHOUR.PBS.ORG.

>> Lehrer: IN OTHER NEWS TOY THIS WAS ALSO THE1ST ANNIVERSARY THE END OF THE RST WORLD WAR. AND, FOTHE FIRST TIME, THE LEARS OF FRANCE AND GERMANY MARKED THE OCCASION TOTHER. FRENCH PRESIDENT SAOZY AND GERMAN CNCELLOR MERKEL TOOK PART IN A JOI CEREMONY IN PARI SARKOZY SAID T 2 COUNTRIES' FRENDSHIP IS "SEALED WITH BLOOD". IT'S ESTIMAT MORE THAN 16 MIION PEOPLE DIED IN WORLD WAR I. ON THE FORHOOD SHOOTING SUECT, ARMY MAJOR NIDAL HASAN. THERE WAS RD OFFICIALS AT ALTER REED ARMY MEDICAL CENT IN WASHINGN QUESTIONED WHETHER HE WAS PSYCHOTIC, WHEN HE WOED THERE. NATIONAL PUBLIC RAD REPORTED THEY FEARED HE'D HELP LITANTS OR TURN ON FELL SOLDIERS -- IF HWERE SENT OVERSEAS. THEY DECIDED AGAINSTAKING ACTN, PARTLY TO AVOID CLAIMS OF ANTI-MUSLIM BIAS THE SNIPEWHO STALKED THE WASHINGT, DC AREA IN 2002 WENT TO HIS DEATLAST NIGHT STILL FUSING TO TALK. JOHN ALLEN MUHMAD WAS EXECUTED BY LETHAL INJECTION IN RGINIA, FOR ONOF 10 MURDERS. BUT HE NEVER EXPLAED HIS ACTIONS AT HIS TRIAL,R LAST NIGHT.

>> I NEVEREARD HIMTTER A RD OR SAY ANYTHING IN PARTICULAR AT ALL. AFTER HE WAS PLACED ON THE RNEY AND STRAPPED DOWN, HE WAS VERY EMOTIONLESS. HE WATCHED BIT OF THE PROCEDURTHAT WAS BEING DONE ON HIM. BUT AFTER THAT WASCOMPLETED AND THE CURTAI WE OPENED BACK U HE HAD HIS HEAD TILTED SLITLY TO T RIGHT AND HIS EYES WERE CLOSED D THAT'S THE WAY HE REMAINED. > Lehrer: MUHAMMAD'S ACCOMICE LEE BOYD MAO IS SERVING A LIFE SENTENCE WITHOUT PAROLE IN VIRGINIA. HE WAS 17 YEARS OLD AT THEIME OF THE KILLGS. THE FOER BLACKWATER SECURITY FIRM FACES ALLEGATIONS OA BRIBERY SCHEM INVOLVING IRAQI FICIALS. "THE NEW YORK TIMES" RORTED TODAY FORM EXECUTIVES SENT ABOUT $1 MILLIOTO THE COMPANY'S BAGHDAD OFFICE LATE 2007. THE REPORT SA THE MONEY WAS MNT TO SILENCE CRITICISM BY IRAQI OFFICIALS AFTER BLACKWER GUARDS KILLED IRAQI CIVILIANS. IT WAUNCLEAR IF THE PAYMENTS WERE EVER DE. THE COANY NOW KNOWN AS ZEE CORP SAID THE CLAIMWERE "BASELESS THE LIGHTWERE BACK ON IN BRAZIL TAY, AFTER WIDESPREAD POWER OUTAGES ACROSS MUCH THE COUNTRY OVERGHT. AS MANY AS 60 MILLION PELE ACROSS 18 STAS WERE LEFT IN TH DARK FOR HOURS. SOUTHEASTN BRAZIL WAS MOST AFFECT, INCLUDING THE COUNTRY'S TWO LGEST CITIES - R DE JANEIRO AND SAO PAULO. AUTHORITIES BLAD STORMS THAT TORE DOWN POWER LINESND OCKED A HUGE HYDROELECTRIC M OFFLINE. THE MORMON CHURCH HAS PUBLIC ENDORSED A PIECE OF GAY RIGS LEGISLATION F THE FIRST TIME. LAST NIGHT, THE CITY COCIL OF SALT LAKE CITY, UTAH VOTED T BAN DISIMINATION AGAINST GAYS IN HOUSING AND EMPLOYMEN A MMON CHURCH SPOKESMAN SAID THE NEW LAWSRE "FAIR AND REASONABLE" AND DNOT UNDERCUT HE INSTITUTION OF MARRIAGE THEROWN PELICAN IS COMING OFF THE "ENNGERED SPECIES" LIST AFTER 39 YEARS. THE INTEOR DEPARTMENT ANOUNCED IT TODAY. E BIRD WAS NEARLY WIPED OUT USE OF THE PESTIDE DDT AND OTHER CTORS. T INTERIOR OFFICIALS SAID HEALTHY POPULATIONSAVE RETURNED TO ORIDA, THE GULF LL STREET MADE SMALL GAINS TODAY. THE DOW JONES INDUSTRIAAVERAGE ADDED 4POINTS TO CLOSE AT 10,291. THE NASDAQ SE MORE THAN 15 INTS TO CLOSE NEAR 2167.

>> Lehrer: ANSTILL TO COME ON HE NEWSHOUR TONIGHT: BUDGET WOES IN THSTATES; A BATTLE WITH PTSD; A COUNSELING THE TROOPS. THAT FOLLOWS, THE MOVTO INCREASE REGATION FOR BANKS D OTHER FINANCIAL FIRMS. JEFFREY BROWN HAS O STORY.

>> Reporr: MORE THAN A YEAR AFTER THE ECONOMIC CRISISIT, LEGISTORS CONTINUE TO WORK ON HOW TO REFORM FINANCI REGULATION AND STAVE OFF FUTURE CRISIS. THE LATEST PROPOS CAME YESTERDAY IN THE FORM OF A 1,100-PAGE AFT FROM SENATE BANKING COMMITT CHAIR CHRIS DOD AT A NEWS CONFERENCE, THE CONNECTICUTEMOCRAT DECLARED THPREVIOUS REGULATORY REGIME HAD FAILED.

>> THE FINANCIAL CRISIEXPOSED A FINANCIALEGULATORY STRUCTURE THAT WAS THE PRODUCT OF HISTIC ACIDENTS, ONE AFTER ANOTHER, OVER THE PAST 8YEARS; CREATED PIECBY PIECE OVER CADES, TH LITTLE THOUGHT GIVEN TO H IT FUNCTIONED AS A WHOLE, A UNAB TO PREVENT THREATS TO OUR ECONOMIC SECURITY.

>> Rorter: DODD CALLED FOR EFFECTIVELY STRIPPINGHE FEDERAL RESERVE AND E FEDERAL DEPOSIT SURANCE CORPORATION OF THE POWER TO REGULATE BAS. A NEWFINANCIAL INSTITUTIONS REGULATORY ADMINISTRATIO TO NSOLIDATE OVERSIGHT OF THE NATION'S BANKS INTONE ENTITY. THERE WOU ALSO BE AN "AGENCY FOR FINANCIAL SBILITY" TO IDENTI AND REGULATE FIRMS CONSIDERED "TOO BIG TO FAIL AND A "CONSUMER FINANCI PROTECTION AGENCY" TO OVEEE MORTGAGES, CRIT CARDS AND THE KE. AS HE LAID OUT HIS PLANDODD WAS HIGHLY CRITICAL OF THE FEDERAL RESERVE,WHILE INSISTING HS NOT OUT TO PUNISH THE INSTITUTION.

>> I REALLY WT THE FEDERAL RESERVE TO GET BA TO ITS CORE ENTERPRISES, A SENSE; TO DO WHAT 'S DESIGNED TO DO: MONETARY POLICY, DEANG, OBVIOUSLY, WITH A NDER OF LAST RESORT, THE PAYMENT SYEMS. THOSE AR WHAT THEY'RE DESIGNED TO DO. WE SAW OVER THE LAST NUMBEOF YEARS, WHEN THEY OK ON CONSUMER PROTECTION RESPONSIBILIES AND THE REGATION OF BANK HOLDING COMPANIES, IT WAS -- ITAS AN ABYSMAL FLURE.

>> Reporter: BY CONTRT, OFFERED BY FANCIAL SERVICES CHAIR BARNEY FRANK WHILEHARING SO GOALS AND FEATURES OF SENATOR DODS PROPOSAL, MAINTAINS A PORFUL BANK REGULORY ROLE FOR THE FED. THE FED,N FACT, REMAINS A IGHTENING ROD IN THIS DEBA AS MA REPUBLICANS AND DEMOCRATS ARE EAGER TO REIN IN WHAT EY SEE AS ALL-TOO-POWERFUL INSTITUTION. REPUBLICAN CONGRESSMANON PAUL OF TEXAS HAAUTHORED A BILL THAT WOULD AUDIT T CENTRAL BANK'S MONETARY POLICIESAND DECISIONSAN IDEA THAT FED CHAIRMAN BEN BERNANKE HAS PUBLICLY OPPOSED. SOME PERSPECTI FROM JOAN NOCERA, THE FINANCIAL COLUMNIST FOR THE "NEW RK TIMES", AND SIMON JOHNSON OF TH M.I.T. SLOAN HOOL OF MANAGEMENT AND THE PETERSON INSTITU FOR INTERNATIONAL ECOMICS. LL, WITH ALL THESE PROSALS SWIRLING AROUND, HELP USHINK ABOUT THE PROBLEM OF REORGANIZING THE REGULATORY SYSTEM. JOE, STARTING WITH YOU. IS ITORE IMPORTANT WHODOES IT OR WHAT DAY THEY DO OR BOTH? >IT IS MOST IMPORTANT WHA THEY DO. YO HAVE A SERIES OF ISSUES THAT NEED TO BE DEALTITH. TOO BIG TO FAIL IS E OF THEM. AT DO YOU DO ABT DERIVATES ISNOTHER ONE. HOW DO OU PROTECT THE CONSUMER IS A THIRD. AND, YOU OW, IF YOU HAD A SYSTEM WHERE U FELT THE BANKS WERE ADQUATELY REGULATED WITH THREE ORFOUR AGENCIES VERSUS ONE ANCY, YOU KNOW, THAT REALLYOT THE ISSUE. WHAT'S HAPPENING HERE FOR PRACTICAL REASONS THE HOUSE IS SAYING-- D THE PRESIDENT IS SAYING-- WE DON'T WANT TO-- TH CHAOS, THE POLITIC CHAO THAT WILL ENSUE IN TRYING TO RECE REE OR FR BANKI REGULATORS TO ONE AND SENATOR DODD IS SAYING, YOU KNOW,,HE COUNTRY BETTER OFF WITH ONE REGULATOR. THEHREE OR FOUR REGULATORS CREATED THE MESS IN T FIRST PLACE AND, YOU KNOW, WE SHOULDN'T BE, YOU KNOW, COMPROMISING NOW. WE OULD BE TOUGH. AND TH'S REALLY WHAT T DIVIDE IS.

>> Brown: WHAT'S THE KEY TO YOU THKING ABOUT HOW TO REVAMP THE STEM?

>> THE KEYS YOU WANT A TOUGH REGULATOGOING FORWARD. YOU WANT AN INSTITUTION OR SET OF ITITUTIONS THAT AREN'T GOING TO BE CAPRED BY THE BAS. LASTIME AROUND, AND THETIME BEFORE THAT AND THE TIME BEFORE THAT, THE BAN PERSUED THE REGULATORS THEY WERE VERY CLEVERY AND HAD ALL KIND OF WAYS OF DOING TNGSND THINGS WOULD BE ALL RIGH AND THEY FAILED AGAIN AND AGAIN. WHAT'BETTER, ONESTRONG REULATOR? THREE OROUR REGULATORS, A JOE SAID, OR VE IT ALL TOHE FED AND GAMB THIS TIME TH CAN GET IT RIGHT.

>> Brown: ONE OF THE TNGS WE TALKED ABOUTN THE PROAM AND JOE ST MENTIONED AIN IS TOO BIGO FAIL. WHAT DO YOU SEE HEREHAT IS ADDRESSI THAT IN POSITIVE WYS OR NOT ENOUGH?

>> THERE'S LITTLE PROGRESS ON THIS ISSUE INHE DODD BILL, GIVING THE MOST POSITIVE POSSIBLE INTERPRETATION, THEY SAY THE AGENCY SHOULDE ABLE TO BREAK UP BANKS THAT BECOME TOO BIG, IRRESPECTIVE OF WHETHER THEY'RE DOING WELL OR NOT. HE ISSUE OF THE LARGER BANKS BRINGINDOWN THE SYSTEM IS NOT BEING ADDRESSED IN THISILL OR THE FRANK BILL O FRONT AND CENTER IN THE ADMISTRATION'S ORIGINAL PROPOSE.

>> Brown: J, WHAT DO YOU SEE ON THAT. LENT ISSUE OFDEALING WITH THE BIG NKS AND WHO REGULATES TH WHERE AREWE AT NOW?

>> I COULDN'T AGREE MORE WITH SIMON. IN ENGLAND, AND IN EUROPE IN GENEL, THIS ISSUE IS MUCH MORE ONHE TABLE. THEY DON'T HAVE A SOTION, EXACTLY, BUT TH ARE TALKING ABOUT IT IN MUCH MORE SERIOUS WAY. THE OBA ADMINISTRATION HAS PUNTED ON TOO BIG T FAIL FROM THE START. IT IS A HARD THING TO GRAPP WITH. IT IS NOT BRING BACK GLASS-SPIEGEL. THAT'S THE ISSUE. THE ISSUES, IS AN INSTITUTION SYSTEMICALLY RKY ENOUGH THAT SOMETHINGEEDS TO BE NE BESIDES FIGURI OUT A WAY TO SHUT IT DOWN-- ALOUGH THAT'S HELPFUL, TO IF YOUAVE ONE GOLDMAN SKS, MAY YOU SHOULD HAVE FIVE GOLDMANACHS ORIVE MOAN STANLEY THAT ARE SLLER IN SE. THESE A ISSUES THAT THIS CONGRESS JST DOES NOT WANT TO TACKLE.

>> BrownJOE, THERE'S ALSO, OF COURSE, INEVITABLY THE POLITICAL ASPECT OF THIS. YOU HAVE SENATOR DODD, HE'S RUNNING FO REELECTION. YOU HAVE PUBLIC ANGER OUT ERE, RIGHT, AT ALL TE BANKS. Y HAVE REPUBLICANS AND DEMOCRATS WILL TALKING ABOUT GETTING TOGETER BUT SO FAR NOT. HODOES THAT PLAY INTO-- PLAY INTO THE POTENAL FOR REFORM? >>ELL, NOT IN GOOD WAYS IS E TRUTH. SURPRISINGLY, T BANK LOBBY REMAI STRONGER THAN YOU WOULD THINK THEY WOU GIVEN THE MESS THAT TH HELPED CREATE. AND SO THEY RALLY DID WIND U WATERING DOWN THEOUSE BILL QUITE BIT. ON THE OTHERIDE, I THINK YOU'RE EXACTLYRIGHT, SENATOR DODD ISING A TOUGH RELRKZ A LONG BEEN VIEWED-- ESPECIALLY ONCE HE BEME A FRIEND ANGELO MAZILLO--

>> THAT'S COUNTRYWID

>> TT'S RIGHT. HEOT TARRED WITH THAT LITTLE BIT. SO HE WAN TO COM FORWARD WITH A VERY TOUGH BILL. O OF HIS PROBLEMS IS THAT NATOR SHELBY, THE REPUBLIN SIDE,HO IS VERY WELL RESPECTED I BANKING AMG HIS COLLEAGUES AS A BANKING PERT, HAS--S NOT GNG ALONG WITH THIS BILL AND GIVEN THE WAY THE SENATE WORKS, WHE YOU NEED0 VOTES, IT LL BE VERY TOUGH TO GET ANHING EVEN CLOSE THIS BILL ON THEENATE FLO WOIT A REPUBLICA ON OR TWO.

>> Brown: SON ANOTHER ISSUES THE FED I MTIONED IN SET, THAT HAS BECOME SH A LIGHTNING ROD. TO WHAT EXTENT IS IT JUSTIFIED? TO WHAT EXTENT THAT DOES IT DO THINGS WELL THAT WE KW? TOWHAT EXTENT SHOULD WE BE THINKING ABOUT I FUTUREOLE? THE FED HAS DONE A GREAT JOB SINCE OUT SEPTEMBER 17 OR 19 LAST YEAR IN TERMS OF--.

>> Brown: THAT TRUF A LOT OF PEOPLE, RIGHT?

>> ACTUALLY, THE FED STANDS OUT AS HAVG DONE A GOOD JOB IN SAVING THE WA WHEN THE ENTI SYSTEM WAS ON THE PRECIPICE AND THINGS COULD HAVE G REALLY BADDUC TH FEDS STEPPED I AND BEN BNANKE SHOWED A LOT OF LEADERSHIP AND MADE SE GREAT STEPS. QUESTION IS WHATAPPENED BEFORE THAT? WHAT WAS THE FED'S ROLE INTHE BOOM, IN ASSESSING T RISK AND REGULATING UNDER ALAN GREENSN ANALSO UNDER BEN BEANKE? AND THE ANSWER IS IT WAS VERY WEAK. ITWAS VERY POOR AND VERY UNSATISFAORY TO MANY MEMBERS OF CONGRESS.

>> Brown:THAT EXPLAINS WHY NOW YOU VE ALL KINDS OF PROPOSALS TO TKE AWAY ITSOWERS?

>> YES, ABSOLUTELY. THE PARTICULAR LIGHTNING ROD FOR REPRESENTIVE PAUL AND OTHER MEMBERS OF E CONGRESS IS LACK OF TRANSPARENCY AOUND WHAT THE FED DO. SOME THAT I JUSTIFIED EN YOU'RE RUSHING AROUND DOG A LOT OF DIFFICU THINGS BUT THE FED HAS A LONG TRADITION OF HIDING MORE THAN IT NEEDS TOAND THAT HAS GERATE AID LOT OF RESENTMENT ON CAPITOL HILL.

>> Brown: J NOCERA, HOW DO YOU SEE THE SITUATION WITH T FED?

>> I THINK IS INCREDIBLY IMPOANT FOR THE FED TO REMAIN INDEPENDENT. I THINK THAT'S O OF ITS GREAT STRENGTHSESPECIALLY IN TERMS OF SETTING MONARY POLICY. THINGS LIKE THE RON PAUL SUGGESTION ARE TROUBLINTO ME. I DO-- I WORRY THAT THE ME THE FED COMES PART OF THE REGULORY SYSTEM ANDHEY KEEP IFGS IT MORE POWER, THE LE-- THE HARDER IT WILLE FOR THE FED TO REMAIN DEPENDENT ON ALL THE THINGS THEY NEED TO REMAIN INDEPENDENT OF. I WILL SAY, IN PAUL WL KER HAD BEEN RUNNING THE FED DURING TS PRICES INSTEAD OF ALAN GREENSPAN AS WE LED UP TO THIS CRISIS PEOPLE WOULDN'T BEALKING ABOUT HOW WEAK THE FED WS. AND A LARGE PT OF THE PRLEM WITH T FED WAS THE GUY W WAS IN CRGE OF IT, WHO SIMPLY DIDN'T BEEVE IN REGULATN. SO I AM OF RT OF MIXED MIND AS TO WHETHERWHETHER THE FED SHOD GET MORE POWER OR LESS POWER BAUSE I DO THINK WE HAVE AARPED VIEW OF THE FED BECAUSE OF AN GREENSPAN'S TENURE.

>> Brown: A LA QUICK THING FROM BOTH OFOU. THE URGENCY HERE, THE SENSE OF TIMING, IS CONGRESS MOVING TOO SLOWLY OR IS IT BETTER TO TAKE THE TIME TO GET IT RIGHT?

>> OBVIOUS THEY'RE TAKING THEIR TIM AND THEY WILL KE A COUPLE MOREONTHS, THE FASTEST POSSIBLE SCENARIO. THIS IS A WINDOW FOR REFORM. IF YOU DON'T DO ITOW YOU'LL RUN THROH THROUGH ANOTHER CYCLE, ANOTHER BOOMBUST-BAILOUT CYCLE. SO DO IT NOW. IT WHEN YOU CA

>> own: .

>> Brown:OE NOCERA?

>> I AEE WITH SIMON T A POINT. I DO THINKECAUSE RACING TO GE THIS DONE DURINGHE WINDOW IO WORRY ABOUT WHATHEFINAL BI LL LOOK LIKE AND THE INTENED CONSEQUCES. I THINK THE ARE A THE LOVE THNGS BEING RUSHED THROUGH TH HAVEN'T BEEN THOUGHT THROUGH PROPERLY.

>> Brown:. THANK U BOTH.

>> Leer: WE'LL HAVE ANOTHER ANGLE ON BANKING REFORMRIDAY WHEN PAUL LMAN TALKS WITH EILA BAIR, HEAD OF THE FDICTHE AGENCY THAT INRES BANK ACCOUN. YOU CAN SUBMIT QUESTIONFOR A SPECIAL WEB-ONLY VERSIONF HIS INTERVI ON OUR WEB SITE NEWSHOUR.PBS.ORG.

>> Lehrer: NEXT TONIGH THE GROWING BUDGET EMERNCIES FACING MANY STATE GOVERNMENT GWEN IFILL HAS OUR UPDATE.

>> Ifill: BY NOW YOVE LIKELY SEEN PNTY OF STORIES AND HEADLINES INCLUNG ON THIS PROGRAABOUT CALIFORNIA'S DEEP BUDGET TROUBLES AND TH CONSEQUENCES. BUT A NEW REPORT FDS THE GOLDEN STE IS HARDLY ALONE. NINE OER STATES ARE ALSO IN A BUDGET FIX. RHODE ISLAND, NEWERSEY, FLORIDA, MHIGAN, WISCONSIN, ILLINOIS, ARIZONA, NEVADA A OREGON, OREGON ALL FACE POTTIAL LAYOFFS, X INCREASES AND CUTS IN SERVICES IN COMINGONTHS. THE PEWENTER ON THE STATES PINPOINTS SEVERAL KEY FACTS. HIGH FORECLOSE RATES. GROWING UNEMPLOYMENT AND LO OF REVENUES BRGHT ON BY THE NIONAL RECESSION. POOR MONEY MANAGEMENT. AND RESISTANCE TO NEWAXES FROM STATEAWMAKERS AND VOTERS. TO TELL MORE ABOUT WHAT'S HAPPENING, TURN TO THE REPORT'S LEAD AUTR SUSAN URAHN, MAGING DIRECTOR OF THE PEW CENTER ON STATES. AND FROM VADA JON RALSTON, COLUMNIST FOR THE "LAS VEGAS SUN."

>> I'LL START WITH YOUSUSAN URAHN, HOW DEEP DOES THIS GO? I THINK THE QUESTION WESKED WAS IF YOU LOOK BEHIND CALIFORNIA, REALY HOW BAD IS IT OUTHERE? AND WE FOD SEVERAL STAES ARE STRUGGLING WITH MANYF THE ME PROBLEMS CALIFORNIA HASND THAT AS THEYOME INTO THE NEXT BUDGET YEAR, WHICH EY'RE BEGINNING TO PUT TOGETHER BUDGETS NOW, AND THE YE AFTER, THAT THEY'RE GOING T BE FACING MANY OF HE SAME PROBLEMSHEY FACED LAST YEAR. SO THEEADLINES WE SAW LAST YEAR I CALIFORNIA WERE ALSO BEING PLAYED OUT INEVERAL OTHER STATES. WE'RE GOING TO S THEM AGAIN.

>> Ifill: I WA TO TALK A LITTLE BIT ABOUTHE REASON FOR ALL THIS BA NEWS? IS IT THE ECONOMY? IS IT THE NATIONALECESSION, OR ISHERE JUST A MEASURE OF POLITICS INVOLV IN THE DISION MAKING? >>T'S A LITTLE BITF ALL THREE. I THINK THAT'S STRIKING ABOUT ALL THE STATES W LOOKED AT IS HO DIFFERENT THEY ALL ARE-- DIFFERENT RTS OF THE COUNTRY, DIFFERENT TAXTRUCTURES, FFERENT POLITICAL STRUCTURES. I THINK CERTAINLY THE ECONOMY IS PLAYING A KEY RE. SEVERAL OF TESE STATES WERE HARD HIT THE HOUSHOUSING CRIS, BY THE COLLAPSE OF T FINANCIAL STRUCTURE. THERE IS THAT. I THINK THE POLITICAL STRUCTURES COME INTO PLAY IN SOME STATES WHERE TH HAVE, SAY, A SUPERMAJORITY REQUIREMENTO PASS TAX INCREASES OR A BUDGET. A I THINK NEVADA IS A TRIFIC AMPLE OF SOME OF THOSE CHALLENGES. IT'S JUST-- IN SOMECASES IT LIMI THE KIND OF SOLUTIONS THAT STATESAN PUT ON THE TLE.

>> Ifill: WELL, JON RALSTON, THIS IS PERFECTPLACE FOR TO YOU PICK UP. TOLLS HOW NEDA FITS OR DOESN'T F INTO THE SCENARIO.

>> I THINK THE PEW REPORT, GWEN, CAPTURE IT ACCATELY, BUT I THINK IT A LITTLE WORSE. I DON'T THINK ANYTATE HAS THE COMBINATIONOF FACTORS WITH THE NARROW BE. IT'S A THE GAMING INDUSTRY, AND ALL YOUAN SEE BEHIND MEERBT STRIP, A CONSTRUCTION. BOTH OF THOSE ARE THE TANK. WE WERE THE FASTEST GROWING AR IN THE COUNTRY DOWN HERE LAS VEGAS FOR A WHILE. ND THE MARKET FELL APART HIGHESTORECLOSURE RATE IN T COUNTRY. AND REMBER, O LGISLATURE IN OME ARCHAIC WAY MEETS EVERY OTHER YEAR. SO THEY HA A 24-MONTH BUDTING CYCLE WHICH I COMPLETELY UNWORKABLE NOW. AND IHINK NEVADA ISN'T TAKING IT SEERLY UNTIL AEPORT LIKE THIS BECAUSEUR NUMBERS HERE E SO SMALL. A $6.9 BILLIONUDGET HERE, $3 BILLION HLE MAYBE NEXT TIME. I MEAN, ARNOLD SCHWARZENEGGER LIGHTS CIGARS WITH $3 BILLION.

>> Ifill: LT'S COMPARE. THERE'S NEVADA THATSN'T A BIG BUDGET BUT IS EMBLEMATIC, A SING-INDUSTRY ECONOMYAND ALSO THE PROBLEM ATIL POLITICAL SETBACK,ND HOUSING FORECLOSURES, WHICH WERE VER HIGH. ARE THO THE SAME KEENDZ OF THINGS WE'RE SEEINGN OTHER PLACEHERE'S MAYBE THE HOLE IS BIGGER AN WHAT ARNOLD SCHWARZENEGGER WOULDIGHT CIGAR WITH.

>> IF YOUOOK A MICHIG, THEY HAVE THE AUTO INDUSTRYUFFERING FOR SEVERAL YEARS FM THE IMPLOSION OF TT SECT ORP O THE ECONOMY. I THINK IF U LOOK AT THE 10 STATES WE LOOKED ATIN THIS REPORT,CALIFORNIA AND THE NINE OTHS, TOGETHER THEY MAKE UP OUT A THIRD OF THE ECONOMY. I THINK IT IS-- IT IS IT IS INCREDIBLY IMPORTANTTO UNDERSTAND WHILE NEVADA MAY NOT BE A BIG STATE, WIONSIN MAY NOT BE A BIG STATE, RHODE ISLAND IS NO A BIG STATE, BUT YOU PUT THEMALL TOGETHER AND THE ARE A BIG PAROF THIS ECONOMY. THINK ALSO WHAT WE'RE EING ON THE NAONAL SCENE IS ENCOURAGING NEWS ABOUT THE NATIOL ECONOMY BEGINNING TO TURNHE CORNER.

>> Ifill: RIGT.

>> I INK WHAT'S IMRTANT TO REMEMBER IS STATESTEND TO LAG IN RECOVERIES. SO STATES WRE STRESSOUT LAST YEAR. THEY CSED I THINK NEARLY A $180 MILON CUMULATIVE BGET GAP. THEYE GOING TO BE FACING THAJ RGE OF A BUDGET GAP TH YEAR. THERE'S STILL HIGH EMPLOYMENT. THAT MEANSTATEEVENUES FROM TAXES IS GOING TO DOWN. IT MEAN THE PRESSURE TO PROVIDE SERVIC IS GOING TO BE UP-- MORE MED KKD MORE UNEMPLOYMENT. SO STATES ARE NOT TURNIG THE CORNER IN TERMS THE RECESSION

>> Ifill: IS TH SOMETHING THAT STATES TURN TO THE FEDERAL GOVERNMENT? WE SAW A COUP OF BIG STATE GOVERNOR IN WASHINGTON COUPLE OF WEEKS AGO THANKING JOE BIN FOR THE SMULUS MONEY AND HOPING FOR MORE. DID THAT HE AND IS THERE MOE?

>> THERE'S NO QUESTION IT HELPED CUSHION THE BLOWF THE RECESSION DING THIS FISCAL YEAR. I THINK WHAT THE FEDAL GOVERNMENT ISOING TO BEING IS IS REALLY TWO BROAD QUESTIS. HE FIRST SHOW BAD IT OUT THERE? THIS IS PARTANSWER TO MATHAT. AND THE SECOND IS DO THE STATES HAVE THE CAPACITY TO FIX THIS PROBLEM ON EIR OWN. E STIMULUS MONEY IS GOING T RUN OUT THIS YEARND I THINK THERE'S A LO OF UNCERTAINTY WHETHER THE STATES CAN MAKE THE CUTS RAISE THE REVENUE AND CLOSE T BUDT GA, AND IF THEDO, WHAT'S THE IMPACT ON THE NATIOL RECERY

>> Ifi: JON, LET'S BOIL THIS DOWN WT A STATE CAN DO. AS YOPOINT OUT, YOU HAVE A 24OCK BUDGETING PROBLEM. YOU HAVE THIS GAP YOU HAVE THE EA THAT PERHAPS UNEMPLOYMENT IS NOT GOI TO GET BTER BECAUSE THE TWO MAIN INDUSTES AREN'T GETTING BETTER AND EDUCATION IS STILL A BIG-- WHAT STEPS ARE BEING TAKENO CLOSE ALL THESE? >>HAT'S THE PRLEM, GWEN. THIS IS POINTED T IN THE PEW REPT, TOO. IT'S NOT JUST ECONOMI IMPEDIMENTS. 'S THE POLITIAL IMPEDIMES. YOU HAVE A GOVERNO HEREWHO IS A REPUBLICAN, WHO HAS TERRIBLE APPROVAL RATINGS. NONEW TAXES IS THE EXTE OF HIS PHOSOPHY, A DEMOATICALLY CONTROED LEGISLATURE AND THEY ARE DOING A TAX STUDY, A REVENUE SDY, TO SEEOW THEY CAN HELP FIX THIS PROBLE FOR GOOD, AND THIS IS THE FIFTH TAX STUDYR SO THAT'S BEE DONE FLAFT 50 YEARS. THEY ALL SHOW THE SAME THING-- WE NEED TO BROADEN THE TAX BASE, GET MORE REVENUE IN. AND ASHE PEW REPORT ALL THE POINTS OUT THERE A CONSTITUTIONALMPEDIMENTS TO DOING THINGS HERE. MINING INDUSTRY WROTE THE CONSTITION IN 1864 SO THEY HAVE PRETTYGOOD PROTECTIONS IN THER THE LAWMAKERS N DON'T WANT TO HURT THE GAMI INDUSTRY BECAUSE IT HURTING. WHERE ARE YOU GOING TOGET THE MONEY FROM? YOUROADEN THE SALES TAX, MAYBE. YOU GO TO SOME OTHER BUSINESS, MAYBE AT A TIME WEN BUSINESSES ARE HURTING? AGA, A POTENTIAL $2 BILLION OR $ BLLION BUDGET GAP EN THE BUDGET ITSELF LAST TIE WAS ONLY $6.9 BLLION. THAT'S A BIGROBLEM. Ifill: IT ALSO SEEMS LIKE A VICIOUS CYCLE, SUSAN, BEUSE ON ONE HAND IN DER TO T NEW REVENUES, TAXES IS PBABLY THE ONLY WAY STATES CAN GET REVENUES. N THE OTHER HAND, MAYBE ASSESSING NEW TAS SLOWS DOWN THE ECOMY AT A TIME WHEN PEOPLE A STRULING.

>> THINK THAT'S EXALY RIGHT AND THAT'S A LOT OF WHAT THE DERAL POLICY MAKERS ARE GNG TO BE INKING ABOUT EN THEY ARE DETERMINNG WHETHER A SECOND STIMULUS IS ED. ANJUST TO THROW ANOTHER FACT OF URN CERTAINTY TO THE EQUATION, WE HAVE ALTH CARE REFORM AND WHHER OR NOT THAT'S GOING TO AFFECT THE STES AS DIFFERENT DISIONS GET MADE. > Ifill: TO THE EXTENT IT ULD PUT MORE PRESSURE ON THE STATES TO BULK UP THE MEDICAIDOLES.

>> EXACTLY RIGT.

>> Ifi: HOW LONG FORE STATES LIKE NEVADA AND OTHERS BEGIN TO BOUNCE BACK? IS THERE A LIGHT ANYWHERE AT THE END OF THEUNNEL? >>WELL, I THINK STATES WILL COMEUT OF THE RECESSION AGAIN MO SLOWLY THAN WE WILL SEE NATIONALLY. BUT 'RE REALLY, I THINK, LOOKING AT TWO PRETTY TGH YEARS. AND I THK CALIFORNIA IS PREDICTING, AS I RECALL, A RETURN TO PRERECESSIOLEVEL REVENUES NOT UNTIL 201 IT COULD BE A LTTLE BIT OF A LONG HAUL COMING OUT OFHIS. >>fill: FOR SOME STATES TALKING FE OR SIX YEARS.

>> POSSIBLY.

>> Ifill: HOW OUT NEVADA. NOW THA EVERYONE KNOWS THERE IS A PROEM IS THERE A PLAN, JON?

>> THER ISN'T A PLA-- ORAYBE WORSE THERE'S TOOMANY DIFFERENT PLANS, AND EVEN WORSE, OF COURSE, IS WE'RECOMING UP ON A MPAIGN YEAR NOW GWEN, SO YOU'RE GOING TO HVE L THESE LEGISLATORS WHENSKED AND WHEN THE GUBERTORIAL KRNDZ ASKED, WHAT'S YOUR PLAN? WHAT ARE THEY GOING TO SAY? LET'S WAIT AND SEE WHAT THIS LATEST SDY SHOWS BEFORE WE HAVE TO TELL YO THERE'S REALLY NOTHINGUT THERE ON THE TABLE. AND THEEAL PROBLEM-- AND THIS IS POINTED OUT IN THEEPORT, TOO-- THE GIMMICKS USED THE PAST I'VE BEEN WRITING ABOUT THIS F DECADES-- WERE USED TO BALANCE THE BUDGET LAST TIME, INCLUDING STIMULUS MONEY WICH WON'T BE ERE IN 2011 WHEN THE MEET AGAIN A THEYSUNSETTING A PAYROLL AND SALES TAX INCREASE SO THAWILL BE GONE. EY'LL BE ESSENTIALLY ARTING FROM SCRATCH, AND UNSS THEY TALK ABOUT IT NEXT YEAR-- WHICH WILL BE VERY DIFFICT TO DO DURG A CAMPAIGN YEAR-- I'M NOT SANGUINE AUT WHAT THE SOLUTION IS GOING BE.

>> Ifill JON RALSTON SUE URHN SOUNDS LIKE IT'S GOINGO GET WORSE BORE ITETS BETTER. THANK Y VERY CH FOR HELPING US WITH THIS.

>> Lehrer: NALLY TONIGHT ON IS VETERAN'S DAY, WE HAVE TW TAKES ON THE MEAL STRESSES OF WA AND HOW MILITARY MEN AND WOMEN ARE DEALING TH THEM. FIRST, BETTY N BOWSER REPORTS ONE MARINE'S STRUGGLES FOR OUR HEALTH UN, A PARTNERSHIP WITH THE ROBERT WOOD JOHNSON FOUNDATION. >>ICK IT TO ME...OH OH.

>> Reporter: IT'S A AUTIFUL CRISP FALL DAY IN NORERN VIRGIA AS STAFF SARGENT EREMIAH WORKMAN, HIS WIFE JESSICA AND THEIR O AND HALF YEAR O SON DEVON PLAY UTDOORS. A TRANQUIL MILY SCENE. BUT ONE THAT MASKS E WAR THIS DORATED MARINE HAS FOUG, FIRST IN THE REETS OF IRAQ, AND LATER BACK HOME WITHOST TRAUMATIC SESS DISORDER. IT ALL ARTED IN THE CITOF FALLUJAH, 40 LES WEST OF BAGHDAD IN NOVEMR OF 2004, FOR WEEKS MARINES POUED THE CITY, IN ONE OF E MOST VIOLENT ENCOUNTERS WITH IURGENTS IN THE WA U.S. TROOPS EVENTUAY REGAINED CONTROOF THE CITY. THEN TWO DAYS BEFORE CHSTMAS, A DAY WRKMAN WILL NEVER FORGET. >>IT WAS DECEMBER 23, 2004 AND THAT WAS THE DAY OPENED LLUJAH BACK UP TO THE CIVILIANS TCOME BACK TO THEIR HOMES ANMY PLATOON WE WERE SKED WITH GOING DOOR TO DOO AND GETTING WEAPO AND AMMO THAT WERE LEFT BEHIND RING THE BATTLE AND WEREN'TBLE TO PICK UP. GOT TOHE THIRD HOUSE AND I WAS IN A BALCONY UPSTAIRS EARING IT AND I HRD GUNFIRE AND I ND OF JUST FROZE. I FELT LIKE I WAS STUCK THE FOR 10 MINUTES, T I KNEW THEY WE BEING AMBUSHED. Reporter: THE HOUSE WAS FUL OF INSURGENTS W HAD A GROUP OF RINES PINNED DOWN BY GUNFIRE A FIERCE BATTLE SUED, >>THE ONLY THING I REMEMBER SEEING WAS THEY WE BEING SHOT AT AND A THE BULLETS WERE BOUNCING BETWEEN THEIR HEADSN THE WALL. IT WAS JUST EWING UP THE WALL. WE DIDN'T KNOW HOW MANY INSURGENTS WWERE LOOKING AT BUT THERE WAQUITE A BIT OF FIROWER COMING FROM UP THERE I WENT RUNNING UP T STAIRS. I KIND OF HAD MRIFLE OVER MY HED JUST SPRAYING AND PRAYING. WAS SCARED.

>> Reporter: WHEN ITAS OVER INSURGENTS HAD KIED THREE OF WOREN'S BUDDIES, CORPORAL LEIGH SMITH, LANCE CORPORAL ERIC HILLENBURG,AND LANCE CORPOR JAMES PHILLIPS.

>> I CAN'T DESCRIBE THEEELING. IT WAS JUST LIKE SOMEBODY FLIPPED THIS SWIT AND I JUST WAND TO KILL THEM BECAUSE OF WHAT THEY'D DONE OUR MARINES, > Reporter: SO HE AND OTHERS WENT BACK IN THEOUSE TO KILL AS MANY IURGENTS AS POSSIBLE, AND HE DID, RHAPS AS MANY AS 4, ACCORDING TO THE PENTAGO

>> I'M JUST THIRDIME IN THE HOUSE. THIRD GRENADE CAME OUT AND I EXPLODED THIS TIME AND THOUGHT THAT WAIT FOR ME. I THOUGHT WELL THAT'S YOUWAR. YOU'RE DYING. SO I SAT AGAINST THEALL AND IT WAS LE LOOKING THROUGH A STRAW. I UST GOT SMALLER AND SMALLER AND IT JUST WENT ACK. AND I THOUG THAT WAS IT. I AD DIED.

>> Reporter: BUT HE LIVED, D RETURNED HOMEO BECOME A CORATED COMBAT VETERAN, AWDED THE NAVY'S HIGHEST AWARD FOR VALOR, THE NAVCROSS. BUT THE HONORID LITTLE TO QUI THE BATTLE THAT WAS GOING ON INSIDE HIS HEAD. WHY DID I LIVE? Y DID THEY DIE? I HAD ONE NIGHTMAREONSTANTLY. I WAON A STAIRCASE. IT WASIKE A NEVER ENDING STAIRCASE AND I WAS NNING UP IT ANTHERE WERE INSURGENTS CHASING ME AND YELLG AT ME IN ARAC, AND IT JUST REPLAYED IN MY MIND EVERY NIGHT. AND I STARTED DRINKING, NOT JUST A LITTLBIT, I MEAN I WOULD DRINKO THE POINT WHERE I WOULD PASS OUT.

>> Rerter: EVENTUALLY WORKMAN WAS DIAGNOSED WITH POS TRAUMATIC STRESDISORDER. IN HIS NEW BOOK, SHOW OF THE SWOR WORKMAN CHRONICLES TH TRAUMATIC DAY INALLUJAH, AND HIS YEAR STRUGGLE WITH PTSD. AFTER RURNING FROM IRAQ, ORKMAN WAS SENT TO PARRIS ISLAND TO BERAINED AS A DRILL INRUCTOR, A MUCH RESPECTED JOB IN THE MINE CORPS, BUT HE FOUND IT MADE HIS PTSD WORS

>> WELL, IT WASRETTY BAD. MENTAY IT WAS JUST KILLING ME INSIDE. MY FIRST Y AS A DRILL INSTRUCTOR I HAD A KID Y TO KILL HIMSELFN THE REST ROOM. AND I JUST HAD A HD TIME WITH IT. I REMEMBER ONE DAY DRIVINTO WORK, THERE WAA CAUSEWAY THAT GOES OUT TO THISLAND, AND I JUST REMBER THINKING TO MYSELF, IAN DRIVE MY TRUCK OFF THIS. I CAN JUST END IT NOW.

>> Reporter: ATNE POINT THE MARINES SENT WORKMAN HOMEO HIS WIFE ANFAMILY IN OHIO, TO REST.

>> PROBABLY TWO WEEKS AFR BEING HOME I S LAYING THERE WITH MY WIFE AND I WE UP AND LKED TO THE DRAWER AND GRABB A GUN AND PUT IT IN MOUTH, BEFORE THAT I SWLOWED A WHOLE BOTLE OF PILLS WENT OUT TO THE GARAGE AND WAS PUTNG A GUN IN MY UTH WHEN HER DAD CAME IN AND STOPPED ME.

>> porter: THAT AND OTHER EPISODES ENDED HIS QUESTO BECOME A DRILINSTRUCTOR. WORKMAN WAS EVTUALLY DECLARED MEDICALLY UNFIT FORILITARY DUTY ANDEXPECTS TO BE HONORABLY DISCHGED FROM THE MARINES SOON. AND AHOUGH HE'S COME A LONG WAY FM THAT DAY HE TRIED TO TAKE HIS LIFE, WORKMAN SLL STRUGGLES WITHTSD.

>> FOR ME ITSIKE SOMEBODY'S COROLLING YOU. YOUEVER KNOW WHEN ITS GOING TO HIT YOU. I ME, PTSD, IT COULD BE SIGHTS,OUNDS, SMELLS ANYTHING CAN TRIGGEIT AND ITS JUST LIKE SOMEBODY'S GOT A HO OF YOU AND IT N'T LET GO. >Reporter: WORKMAN SAYS HE TURNED THE CORNE TWO AND A HALF YEARS AGOHEN HIS SON CAME ONG.

>> DEVON WAS BON AND I REALIZED HAVE A PURPOSE NOW. I CAN'T BEELFISH. IT'S NOTUST ME AND MY WIFE ANYMORE. I'VE GOA LITTLE ONE TO TAKE CARE OF AND I WA HIM TO BE TAUGHT HOW BE A MAN, AN HONORABLE MAN AND HE NEEDS M AND THAT'S WHEN I CAME OVER E HILL SO TO SPK.

>> Reporter: BUT JESSICA WORKMAN, HIS WIFE 6 YEARS SAYS THIS ARE STILL ROCKY, BECAUSE HE OCCASION. >IT FEELS LIKE THIS NEVER ENDING STRUGGLE. ITS YOU KNOW ONCE HE'S ON HIS MEDS IT TAKES THEDGE OFF, THINGS GO WELL FOR AWHIL THEN I DON'T KNOW, 8, 9,0 MONTHS AND THEHE FEELS HE CAN DO IT HIELF AND WE GO THROUGH SEVERAL MOHS OF MOOD SWINGS, ANGER,

>> Reporter: DO YOU INK YOU GUYS AREOING TO MAKE IT?

>> I HONESTLY HOPE WDO BUT I DON'WANT HIM TO TAKE HIS MEDICATION BECAUSE I WANT HITO OR BECAUSE HE WTS TO BE A BETTER PERSON R HIS SON, I WANT HIM TTAKE IT SO HE WILL FEEL BETTER AND SO YOU KW HE CAN LOOK IN E MIRROR EVERY DAY AND REALIZE YOU KNOW I'VEOT IT GOOD. I'M LUCKY BE HERE. >>Reporter: AS MANY AS 37% OF SERVICE MEMBERS RURNING FROM IRAQ ANDAFGHANISTAN NOW SUFFER FROM A MENL HEALTH PROBLEM, MOSTLY PTSD AND ODEPRESSION, ACCORDING TO A RECENT STY BY RESEARCHERS AT THE SAN FRAISCO EPARTMENT OF VETERANS AFFAIR DEFEN DEPARTMENT OFFICIALS ALSO ACKNOWLEDGE THAT T SUICIDE RATE AMO RETURNING TROOPSS SKYROCKETING. >>HO'S COMIN' HOME? DADDY, AIN'T IT?

>> Reporter: SOLDIERS GEING OFF THE PLANE EFRTS ARE UNDERWAY IN ALL BRCHES OF THE MILARY TO PROVIDE BETTER MENTAL HEALTH TREATMENTOR COMBAT VETERA

>> I REALIZED I WAS BEING TEN OVER BY THIS DRESSION AND WORKMAN IS DOINGIS PART, BY TELLING HIS ORY IN MARINE CORPS SUIDE PREVENTION VIDEOS. HE SAYS PTSD ISOTHING TO BE ASHED OF. ERE'S SUCH A STIGMA OUT TRE INVOLVIN P.T.S.D.,HAT NOBODY WANTS TO BE ASSOCIATED TH IT. WH IN FACTIT'S-- YOU KNOW IF YOU BREAK YOR LEG YOU GO TO THE HOSPITAL. THEY P A CAST ON IT, AND SIX WEEKS LATEYOU'RE FINE. Reporter: WORKMAN SAYS HE WENT BACK ON HIS MEDATION THE DAY WDID THIS INTERVIEW, AND HE LEFT WITH SON DEVOFOR A 10- DAY VIT WITH THE BOY'S ANDPARENTS IN OHIO. ONCE HE'S DISCHGED, HE PLANS TCONTINUE WORKING AS A CIVILIAN IN A COS PROGRAM DESIGNED TO HELP FEOW COMBAT VERANS DEAL WITH PTSD.

>> I LIVE DAY TOAY. I THINK YOU HAVE TO WH PTSD. I CAN'T SAY WHE I'LL BE NEXT WE. JUST GOT TO FOCUS ON TODAY. THEN AFTER THAT'S OV, I'LL START OVERITH TOMORROW. AND THAT'S HOYOU'VE GOT TO LIE. >>Lehrer: WE HAVE EXTENDED EXCERPTS OF BETTY ANN INTERVIEW WITH RGEANT WORKMAN OOUR WEB SITE NEWSUR.PBS.ORG.

>> Lehrer: NOTO JUDY WOODRUFF FOR PART TWO OF OUR LK AT CARING FOR THE MTAL HEALTH OF AMRICAN SERVICE PERSONNEL.

>> Woodruff:ITH ME ARE TWO WI EXTENSIVEXPERIENCE COUNSING TROOPS FOR TRAUMATIC STRESS. DOCTOR JEFFY JOHNS WAS AN AIR FORCE PSYCHIATRISTROM 2001 TO 200 HE'S NOW IN PRIVATE PCTICE AND WORKS AT A COMMUNITY HEALT CLINIC. HEIDI KRAFT WASA CLINICAL PSYOLOGIST IN THE NAVY. SHDIRECTED A COMBAT STRESS UNIT IN IRAQ AND LAR WROTE A BOOK TLED "RULE NUMBER TWO: LESSONS I LEARNED IN A MBAT OSPITAL." SHE CONTINUES TO TREASOLDIERS. THANK YOU BOTH FOTALKING WITH US. WE JUST SAW THATOMPELLING PROFIL OF THE FORMEMARINE. WE HEARD HOW PREVALENT IT IS. HEI KRAFT, DO THAT SQUARE WITH WHAT YOU'VE SEEN?

>> ABSOLUTELY. SERGEANWORKMAN'S STORY SOUNDS VERY, VERYIMILAR TO AT I HEAR FROM MA OF MY PATNTS WHO ARE ALSO MARIN A EXPERICE SO MUCH OF THE SAME TYPEOF SYMPTOMSHAT HE DESCRED. IT REALLY SOUNDS INCRIBLY FAMILIAR TO ME.

>> AND DR. JOHNS, DOES THAT SOUND LIKE WH YOU'VE WITNESSED

>> OH, S, VERY MUCH SO. THERE AREANY CASES VER SIMILAR TO JEREMI'S ALL ACROSS THIS NATION

>> AND DR. JOHNSHOW ABOUT HOW EVALENT IT IS. WE HEARTBEDDY BETTY ANN CI THE SKYROCTING NUMBER OF ICIDES, THE NUMBER O SERVICE MEMBERS EEKING TREATMENT. WHAT'S YOUR SNSE OF THAT?

>> MY NSE IS IT'S TREMDOUS PROBM, OFTEN RECOGNIZEED AND UNDIAGNOSED ILE MEMBERS ARE STLL IN THE ACTIVE DUTY SERVICES. WHILE THE PRESIDENT TALKTHAT WEILL TAKE CARE OF OUR OWN, WE'RE RALLY SHORTCHANNG OUR TROOPS ANDOT PROVIDING THEM THE CARE TAT THEY NEED. SO TH PROBLEM IS PERVASIVE. IT IS EXTSIVE. AND WE NEED TO BE DOING ALOT BETTER JOB TO KE CARE OFHESE TROOPS.

>> Woodruf: HEIDI KRAFT, GIVE US SENSE OF WHAT YOU SAW, WHAT YOU'RE WORKG WITH NOW, AND THE CHALLENGES THAT THESE VETERANS FACE WHEN THEY ME BACK AND THEY TRY TO GET HELP.

>> IWAS INRAQ DURING A TOUGH TIME, DURING 2004, DURI THE BATTLE FOR FALLUJAH BEFORE RGEANT WORKMAN WAS THERE, AND IT WAS A DIFFICULT ME, I THINK R ALL THE MARINES TH WERE IN OUR CRE AND FOR US AS MEDICAL PROVIDS, NOT KNOWING WHAT WAS NEXT FOR THE CONFLICT, AND HOW IT WAS GOING TO AFCT ALL OF US. IN THE DESERT WE DEALT WIH VERY ACUTE, TRAUMIC SITUATIONS, AND TATED THEM IN THAT ACUTE SENSE SORT OF TRYIN TO KEEP PEOPL FUNCTIONAL AND GET TEM BACK TO EIR UNITS AS SOON AS POSSIBLE. SINCE THEN, AFTER THEOOK, AND DOING A FA AMOUNT OF PUBLIC SPEAKING A STILL SEEING PATIENTS PA TIME, IT'S INTESTING THAT MANY OF MY PATIENTS HAVE DEPLOYED THREE AND FOUR TIMES, BUT THESE MO CENT DEPLOYMTSAVEERVED AS TRIGGERS FOR EARLIER TRAUMAS, SUCH AS DURI THE TTLE FOR FALLUJAH WHICH CONTINUES TO BE A TIME THAT A LO OF MARINES REVISIT IN THES SYMPTOMS SO IT IS ACHALLENGE. THE CONTINUINGDEPLOYMENTS CONTUE TO PROVIDE CHALLENGES ACROSS TH BOARD FOR BOTH THE WARRIORS D THE DOCS THAT TAKE CARE OF THEM.

>> Woodruff: H DOES THAT AFFECT THEM, THE FACTHAT THEY ARE BEING SENT BAC, ASOU SAY, THREE OR FOUR TIMES?

>> MOST MIGHT HAVE PATIENTSND VERYILLING AND ABLE TO GO BACK. THEY'RE MARES. IT'S WHATHEY DO. EY FEEL LIKE THAT'S THEIR DUTY. IT'SWHAT THEY'RE WE TRAINED TO DO, AND THEY NTO STAY WH THEIR UNITS. THEY DON'T WANT IT LET ANYBODY DOWN. IT'S A BIG DEAL IN THE MARINE RPS AS I THINK YOU ARD IN MR. WORKMAN'STORY. I THINKHERE THIS BECOMES CHALLENGING I WHEN SOMETHING IN A LER DEPLOYMERIGGERS SOME OF THE VERY TRAUMATI MEMORIES FROM EARLIER DEPLOYMENT THA HAVE BE VERYFFECTIVELY DENIED ONG THE WAY BECAUSE THEY STILLAD A J TO DO. 'RE VERY, VERY GOODmMS HUMAN BEGS AT AVOIDING TRAUMATIC MEMORIES WHEN WE HAVE TO CONTINUE FUNCTION. IT IS WHAT CAUSED P.T.S.D..

>> Woodru: DR. JOHNS, YOU FT OF T MILITARY. HOW GOOD A JOB IS THE MILARY DOING KING CARE OF THESE VETERA WHO COME BACK WITH THESKINDS OF ISSUES? >>OT A VERY GOOD ONE. WE SIMPLY DO N HAVE THE NUMBERS O TRAINED PROFESSIONALS THAT WE NE TO TAKE CARE OF THESE INDIVIDUALS. THERE'S ANVALANCHE OFEEDS OF INDIVIDUALS SUFFERING WTH DEPRESSION,.T.S.D., TRAUMATIC BRAIN INJURY, AND OHER MENTAL ILLNESSEAND THEY'REOT GETTING THE CARTHEY NEED. TRY AS THEY MIGHT, THE MILITARY IS NOT ABLE T RETAIN AND RECRUIT E TALENTED METAL HEAH PROFESSIONALS THAT IT NEEDS. AND THERE AREEVERAL REASONS FOR THIS, BUT THE STRESSES OF DAILY... LIFE IS PRIMARY. ALSO, WITH CRENT DEPLOYME CYCLESS THEY ARE, IT DOES NOT ALLOW FOR THE GOOD QUALITY EATMENTS TO TAKE PLACE WITH THERAPISTS AS WELL ASOLDIERS ING IN AND OUT OF DEPLOYMEN.

>> odruff: YOU TOLD-- DR. HNS, YOU TOLD ONE OFY COLLEAGUES THIS ONE OF THE RESONS YOU DECIDED TO LEAVE THE MILITARY.

>> YES I GRE UP AS A MILARY BRAT. MY FHER WAS A CAREER MILITARY FGSS AND I THOUGHI WOULD BE, O. BUT WHEN I RLIZED THAT MY PRIMARY JOB AS A DOCTOR IN E MILITA WAS NOT TO PROVIDE THE STANDARDF CARE TREATMENT TO THE TROOPS BUT TO USE MY SLLS TO PREPA THEM TO FIGHT A WAR IN WHICH I HAPPENED NOT TO BELIEVE, IDECIDED THAT THATAS NOT THE PLACE FOR ME. I WOULD ALSO SAY AT I EW FULL LL THAT OURROOPS WOULD INFLICT TRAUMAS AND HAVE TRUM AS INFLICTED UPON THEM. AND WOULD NOT B RECEIVING TH FINITIVE CARE THEY ND. WE'RE LETTING THEM DOWN WE' NOT PROVIDING THEM T CARE THEY BARGAINED FOR WHEN THEY SIGNED UP. WE SHOULD BE DOING A LOT BETTER JOB.

>> Woodff: HEIDI KRAFT, HOW WOULD YOU AESS THE JOB THE MILITARY DOING TAKING CARE O THESE RETURNG VETERANS? >IT'S INTERESTING, BECAUSE SINCE THE BOOK'SOME OUT, I'VE HAD THE OPPORTUNITY TO CONSULT WI A LOT OF OUR LINE LEADS, SORT OF SPENT MORE TIM WTH THEM LATELY AND IT'S THIS REAL PUH ON THE SIDE OF THE WRIORS THE ATUAL SOLDIERS, THE ACTUAL MINES, THAT ACTUALLYO THE FIGHTING IN TSEITUATION, AND THEY ARE-THEY ARE TRYING SO HARD FINALLY TONDERSTAND AND KE CHANGES TO THE LONG-STANNG STIGMA TO WHICH SERANT WORKMAN REFRED. ITIS VERY, VERY TOUGH FOR THESE YS, THESE WARRRS, TO ADMIT THAT THEY'RE SUFFERING. ANDTO TRY TO CONCEPTUALIZE E TRAUMA THATHEY MIGHTAVE EXPERIENCESED AS AN INJURY, SOMHING THAT CANN FACT BE HEED AND GET BETER AND CAN RETU THEM TO DUTY. THIS IS NOT THE WAY THE STIGMA HAS LED THEM TO BELVE, AND SO IT HAS NOT JT BEEN MEDICAL FIGHT B ALSO A LINE FIGHT TO Y TO CHANGE THAT STIGMA. I THINK IT'S A SLOW, SLOW PROCESS. THIS CULTURE HAS HAD AN INTOLERANCE FOR EMOTIONAL IMPERFECTIOFOR A VERY LONG TIME, SO THE ATTEMPTS ARE BEIN MADE. I SEE LOT OF CHANGES HAPPENING AS I GO AND SPEAK TO DIFFERENT GROUPS ANDMEET WITH DFERENT FOLKS. IT'S STARTI TO CHANGE. IT'JUST-- IT'S JST INCREDLY OW TO CHANGE.

>> Woodruff: AND, DR. JOHNS, I INK BOTH OF YOU MNTIONED TO US THE PRESSURES FM COMMANDERS TO KEEP THESE UNITS AT FULL STRENGTH AND HOW THAT FIGHTS THE DESIRE OF MENTAL HEALTH PROFESSIONALS TO IDENTY VETERANS ORROOPS, RATHERAS HAVINA PROBLEM.

>> EXALY. THE NDS OF THE MILITARY COME FIRST. THAT IS SOMETHING THAT IS REPEATED OVER AND OER AGAIN, EVEN IN MENTAL HEALTH CLINS. OUR JOB IS TO PREPARE FOLKS FOR WARAND THAT IS INCOMP UBLG WITH FAKINGARE OF TROOPS AND PROVING THEM THE DEFINITIVE TREATMENT THAT'S NEEDED FOR P.T.D. WHE THERE HAVE BEEN SOME EFFORTS TO DECREASE T LEVEL OF IGMA AGAIST MENTAL ILLNE IN THE MILITARY, THAT'S REALL NOT WHAT THE MILITARY DES. IT NEEDS BODIES ON THE GOUND. ITEEDS TO FIGHT WS BY SENDING TROOPS OVERSEAS, AND THAT'S T WHAT GOOD THERY DOES.

>> Woodruff: HEIDI KFT, WH, FINALLY WOULD YOU SAY MOST NES TO BE DONE TO MAKE TS-- TO IMPROVE THIS SITUATION?

>> FIR FOR ME, IT CONTINUES TO BE THE STIGMA. SO I THINK PROBABLY THE LINE NEEDS TO CONTINUE TO BUYINTO THIS AND HAVE EVERY LEVELF THE CHAIN OF COMMAND BUY INTO IT, THAT THESE INJURIES ARE JUST THAT-- INJURIES, AND NOT DISOERS, NOTENTAL ILLNESS BUT SOMETHING TH CAN IN FACT BE TREATED AND GET BETTER. THE OTHER THING IS THAT ALL OF OUR TRAPISTS, ANYONEHO PROVIDES MEAL ALTH CARE, NEED TO BE TRAINED INTHE EVDENCE-BASED TREATMENTS THAT ACTUALLY HELP TSE MPTOMS GET BETT AND HE PEOPLE PROCESS TRAUMA. THE'S A REAL PUSH TO ME THAT HAPPEN RIGHT NOW. IT IS STARTING TO BE ROLLED OUT AND IT'S A BIG ANDMPORTANT-- IMPORTT PUSH BECAUSE I THINK WE ALL NEED TO BE VERY-- VERY READY TO TREAT THESE DIFFICULT DISORDERS AND DIFFULT INJURIES.

>> Woodruff: WELL ON TIS VETERAN'S DAY,E ESPECIALY WAT TO THANK BOTH OF YOU, HEIDI KRAFT, AND DR. JEFFREYOHNS, FOR TALKING WITHUS. THANK YO

>> THANK YOU.

>> MY PLEASURE.

>> Lehrer: AGAI THE MAJOR DEVELOENTS OF THE DAY: AMERICANS OBSERVED VETERANDAY GAINST THE BACKDROP OF ONGOI WARS AND THE SHTINGS AT FORT HOOD, TEXAS; AND THE PSIDENT MET WITH H FULL NATIONAL SECITY TEAM AS HE NEARED A DECISION SENDING MORE TROOPS TO AFGHANISTAN. ON NEWSHOUR.PBS.ORG. TWO ONLINE-ONLY FEARES TONIGHT. IN OOBER 2001, RAY SUAREZ REPORT ON REACTION AT A VIRGINIA MOSQ TO THE 9/11 ATTAS. HE INTERVIEWETHE IMAM NOW LINKED TO E ALLEGED SHOOTER AT FORT HOOD. YOU CAN WATCH THELERIC'S RMON AND READ RAY'S REPORTES NOTEBOOK. AND JEFFREY BROWN TALKS ROBERT EDSEL ABO HIS NEW BOOK, THE MONUMEN MEN. IT TELLS THE STORY THE TEAM OAMERICANS WHO HELPED RECOVER SOME OEUROPE'S GREATEST WORKS OF ART FROM THE NAZIS

>> THERE WERE MUSEUM DICTORS, CURATOR URKZ ARTTS THEMSELVES WHO VOLUNERED FOR SERVICE, AVERAGE E 40, MOST WITH ACCOMPLISHED CAREER MANY WITH FAMILIES. EY HAD EVERY REAS TO NOT VOL STEER A GO DO THIS BUT THEY FELT IT WAS IORTANT TO TRY TO ESERVE THE GREAT CULTURE TREASURES OF THE WESTERN CIVILIZATION,HAT WOULD BEME A STAI FOR ALL TIME I T TREASES WERE DESTROYED.

>> Lehrer: THE FULL INTEIEW WITH ROBERTDSEL IS ON OUR ART BEAT PAGE.

>> Lehrer: AND AIN TO OUR HONOR LL OF AMERICAN SERVICE PERSONNEL KILLED IN THE AQ AND AFGHANISTACONFLICTS. WE ADD THEM AS EIR DEATHS ARE MA OFFICIAL AND PHOTOGRAPHS BECOME AVAILABLE. HERE, IN SILENCE,RE 11 MORE. >Lehrer: WE'LL SEE YOU ON-LIN AND AGAIN HERE MORROW EVENING. 'M JIM LEHRER. THANYOU AND GOOD NIGHT. MAJOR FUNDING FOR T NEWSHOUR WITH JIM LRER IS PROVIDED BY:

>> THIS IS THE ENGINE THA CONNECTS ABUNDA GRAIN FROM THE ERICAN HEARTLAND TO HARAN'S BEST SELLING WHOLWHEAT, WHILE KPING 60 BILLION POUNDS OF CARBONUT OF THE ATMOSPHERE EVERY YEAR. BNSF, THE GINE THAT CONNECTS US. > CHEVRON. THS IS THE POWER OF HUMAN ENERGY. AND BY TOYA. A MONSANTO. AND THE WLIAM AND FLORA HEETT FOUNDATION, WORKING TO SOLVE SOCIAL AND ENRONMENTAL PROBLS AT HOME AND AROUND THE WORLD. AND WITH THE ONGOINSUPPORT OF THESE STITUTIONS AND FODATIONS. AND... THIS PROGRAM WAS MADE POSSIB BY THE CORPORATI FOR PUBLIC BROADSTING. AND CONTRIBUTIONS TO YOUR PBS STATION FROM VIERS LIKE YOU. THNK YOU. Captioning spoored by MacNEILEHRER PRODUCTIONS aptioned by Mea Access Group at WGBH access.wgbh.org