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>> Woodruff: GOOD EVENIN I'M JUDY WOODRUF THE NEWSHOUR THIS MONDAY, T AD STORY IS PRESIDENT OBAMA' SPEECH ON WALL STREET, WARNG FINANCE LEADERNOT TO REPEAT THEIR RECKLESS BAVIOR. TH WE HAVE THE OTHER NEWS OF THE DAY: PAUL SOAN TELLS THE STORY OF THE CLAPSE OF LEHMAN BROTHERS A YEAR AGO; JEFFR OWN HAS A BIG PICTURE LOOK O AT'S CHANGED AND WHAT HASN'T ON THE FINANCIAL FNT; GWEN IFILL EXAMINES THE GROWING PAISAN SPLIT IN WASHINGTON AND BEYOND; ANREMEMBERING THE FAER OF THE GREEN REVOLUTION, NOBEL PEACE LAUREATEORMAN RLAUG, WHO DIED OVER THE WEEKEND. MAJOR FUNDG FOR THE NEWSHOUR WITH JIM LEHRER PROVIDED BY:
>> TINY LITTLE THING, 'S JUST... NOT BIG. AH... OKAY, I FOUND IT. ( CHEE AND APPLAUSE ) OKAY.
>> WE ARE INT, SPONSORS OF TOMORROW.
>> WITH THADVICE AND PLANNING TO HELP YOU DRESS TODAY'S ALLENGES, WE'RE WITH YOU. WACHOVIA SECURIES IS NOW WELLS RGO. TOGETHER WE WILL GO FAR. CHEVRON. AND THE WILLIAM AND ORA HEWLETT FOUNDATION, WOING TO SOLVE CIAL AND ENVIRONMENTAL PROBLEMS AT HOME AND AROD THE WORLD. ANWITH THE ONGOING SUPPORT OF THESE INSTITUTNS AND FOUNDATION AND... THIS PROGRAM WAS MADE POIBLE BY THE CORPORATION FOR PUBC BRDCASTING. ANBY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERSIKE YOU. THANK YOU. >>oodruff: PRESIDENT OBAMA WAED THE FINANCIAL INDUSTRY TODAY NOT BRING ON ANOTHER MELTDOWN HE SKE ON THE ANNIVERSARY OF THE HMAN BROTHERS COLLAPSE TH TRIGGERED A CRISIS. NEWSHOUR KWAME HOLMAN HAOUR LEADTORY REPORT.
>> IWAS ONE YEARAGO THAT NEWS OF THE END OF LEHMAN BROTHERS DONATED IN THE FINANCIAL WORLD. THE DEMISE OF THE STORIED INVESTMENTANK TOUCHED OFF WAVE OF FEAR. BUT TODAY IN THE WALLTREET DISTRICT T PRESIDENT SAYS BUT TODAY IN THE WALL STRE DISTRI THE PRESIDENT SAYS THE PANIC IS PASSED THKS TO FEDERAL RESCUE AND STIMULU EFFORTS.
>> WE CAN BE CONFIDE THAT THE STOR OF THE PAST TWO YEARS ARE BENNING TO BREAK. THE GROWING STABILITRESULTING FROM THESE IERVENTIONS MEANS WE'RBEGINNING TO RETURN TO RMALCY. BUT HERE IS WHAT I WT TO EMPHASIZE TOY. NORMALCY DOES NOT LEAD TO COMPLACENCY.
>> TO THAT END MR.BAMA WARNED TH SOME IN THE INDUSTRY ARE IGNORI THE LESSONS OF THE LEHMAN COLLAPSE.
>> WE WILL NOT GO BA TO THE DAYS OF CKLESS BEHAVIOR AND UNCHECKED EXCE THAT WAS AT THE HEART OF THIS CRISIS WHERE T MANY WERE TIVATED ONLY BY THE APTITE FOR QUICK KILLS AND BLOATED BONUSES. THOSE ON WALL STREET CANO THRESUME TAKING RISKS WITHOUT GARD FOR CONSEQUENC, AND EXPECT THAT NEXT TIMEMERICAN TAXPERS WILL BE THERE TO BREAK THEIR FALL.
>> Reporter: LEHN'S FAILURE WAS E LARGEST BANKRUPTCY IN U.S. HISTO BUT TAAYERS SHORED UP OTHER RTS OF THE SYSTEM. THAT DURING AT SAME TIME FANNIE MAE AND FREDDIE MAC, THE GIANT RTGAGE LENDERS WEREAKEN OVER BY THE GOVERNMENT. TH$50 BILLION SALE OF MERRILL -- MERRILLYNCH TO BANK OF AMERICA WHAT ENGINEERED BY THE TRSURY AND FEDEL RESERVE. AND INSURANCE GIANT AI RECEIV RESCUE LOANS IN RETURN FOR FEDAL CONTROL. BUT DAAFTER DAY WALL STREET WASAW HUGE STOCK INGS.
>> YOU WOULD GO HOMEN FRIDAY, COME BACK NDAY THEY WOULD BE OUOF BUSINE, GO HOME, THEY COME BACK THEY WOULD BE GONE.
>> BEARLY OCTOBER THEY PASS THEROUBLE RELIEF PROGRA TARP, THE FUND ORIGINAL WAS INTENDED TO BUBAD ASSETS FROM BANKS. TIMATELY IT WAS USED TO INJECT CAPITAL INTTHE SYSTEM. IN HIS SPEECH TODAY Mr. OBAMA PRSED AGAIN FOR OVERHAULINTHE FINANCIAL OVSIGHT SYSTEM. >>HERE WILL BE THOSE WHO ARGUE SHOULD DO LESS OR NOTHING AT ALL THERE WILL BE THOSE WHO ENGAGE IN REVISIIST STORY OR HAVE SELECTIVE MEMORIES AND DON'TEEM TO CALL WHAT WE JUST WENT THROUGH ST YEAR. BUT TO THEM SAY ONLY THIS, DOOU REALLY BELIEVE THAT THE ABNCE OF SOUND REGULATION ONE YEAR O WAS GOOD FORHE FINANCIAL SYSTEM DO YOU BELIEVE THE RESULTI DECLINE IN MARKETS AND WEALTH AND UNEMPYMENT, THE WRENCHING HARDSHIP THAT FAMILIESRE GOING THROUGH ALL ACROSS THEOUNTRY WAS SOMEHOW OD FOR OUR ECONOMY? WAS THAT GOOD FOR THE AMERICAN PEOPLE? >>eporter: THE PRESIDENT ALREADY HAS SENT CONGRS PROPOSALS R SWEEPING CHANGES IN FINANCI REGULATION. THE ST EXTENSIVE SINCE THE GREAT DEPRESSION. KEY LAWMAKERIN THE HOUSE AND SENATE HAVE PROMED ACTION BY THE END THE YEARUT PROGRESS HAS BEEN SL. ON THE SENE FLOOR TODAY DEMOATIC MAJORITY LEADER HARRY REID INSISTED REGULATORYEFORM STILL IS A PRIORITY FOR CONGRS.
>> T BOOKS WILL TELL THE TALE OWHAT HAPPENED IN THE WEEKS D MONTHS AFTER SEPTEMBER 14th, 2008. MAJOR INVESTMENT BANKS, FOR DECADES ANORED WALL STREET, SILY DISAPPEARED. BUT THE HISTORY OKWILL ALSO TELL THE TALE OF WHAT HAPPED BEFORE SEPTEMBER 14th, 2008. AND THE SIULAR LESSON FROM THAT GILDED AGE THAT WE CANNOT WAIT UNTIL SYSTEM COLLAPSES FORE WE ACT TO SAVE IT. Reporter: STILL, MANY OF THE FIRMS THAT WERE EMED TOO BIG TO FAIL LAST YEAR ARE EVEN LARGER NOW. AND GORNMENT INVOLVEMENT IN THERIVATE SECTOR NOW EXTENDED FROM FINANCE TO INRANCE TO THE AUTOMAKERS. FIVE OF THE BIGGEST BANK GOLDMAN CHS, JPMORGAN,9M WELLS FARGO, CITIGUP AND NK OF AMERICA RECENTLY POSTED0RD QUARTERLY PROFITS TOTANG $13 BILLION, DOUBLE THE SAME PERIOD LAS YEAR. THE LLOUT CONTINUES AS WELL. TODAY A FEDERAL JUDGE BLOCKED A DEAL BETWEEN FEDERAL REGULATORS AND BK OF AMERICA TO SETTLE CUSATIONS THE BANK WITHHELD INFORMAON ABOUT BONUSES MERRILL LYNCH. ANTHERE WAS WORD THAT NEW YORK STA MAY FILE CHARGES OF ITS OWN.
>> Woodruff: IOTHER NEWS DAY, A TRADE DISPUTE BETWEEN THE U.S. AND CHINA ESCATED. THE CHINESE GOVERNMENT FILED COMPLAINT WITH THE WOR TRADE GANIZATION, OVER NEW U.S. TARIFFS ON CHISE TIRES. BEIJING SAID IT'S FOCUSED AMERICAN EXPORTS OF AUTO PTS AND POULTRY. THE TWO SIDES NOW HAVE 60 YS TO TRY TO NEGOTIATE A SOLUON. ONALL STREET TODAY, THE DOW JONES DUSTRIAL AVERAGE GAINED 21 POINTS TO CLOSE WELL ABE 96. THE NASDAQ ROSE RE THAN 10 POINTS TO CLOSE ABOVE 20. IN AFGHANISTAN, ELTORAL OFFICIS PUT OFF ANNOUNCING WHEN THEY'LL REASE THE FULL RELTS OF THE AUGUST 20 PRESIDENTIALOTE. THERE' BEEN WIDESPREAD CHARGES OF FRA. MEANWHILE, THE DEATHOLL FOR U.S. ANDATO TROOPS CLIMBED TODAY. TWO AMERICANS WERE KILLED A BOMBING IN THEOUTH. AND BRITISH SOLDIER AND ANOTHER NATO SERVICE MEMBEDIED ON SUNDAY, ALSO INHE SOUTH. A NEW AUDIOTAPOF OSAMA BIN LADEN HAS SURFACED, WING THE AFAN WAR WILL GO ON. E AL QAEDA LEADER'S MESSAGE WAS POSTED ON AN IAMIC MILITANT WEBTE. IN IT, HE SAID PRESINT OBAMA IS SIMPLFOLLOWING THE POLICIES OF PREDENT BUSH, INFLUENCED BY ISRAELND OTHERS.
>> T WHITE HOUSE IS CUPIED BY PRESSURE GROUPS RATHER THAFIGHTING TO LIBERATE IRAQ AS BUSH HA DONE, THE WHITE HOUSE SHOU HAVE BEEN LIBERAD. THE CHIEF OF THE WTE HOUSE IN THESE CIRCUMSTAES REGARDLESS OHIS NAME IS LIKE A TRAIN OPETOR WHO CAN ONLY FOLLOW E TRACKS THE PRESSURE GROUPS T IN PLACE FOR M.
>> Woodruff: THE BIN LADEN MESSAGE WAS INTENDED TMARK THE ANNIVERSY OF THE 9/11 ATTACKS. IN NEW YORK CITY, FEDERAAND LOCAL LAW ENFORCEMENT AGENTS HAVE RDED SEVERAL HOMES IN A TERRORISM PROBE. THE SEARES TOOK PLACE IN THE BOROUGH OF QUEENS. THERE WERE FEW DETAILS, BU INTELLIGENCE OFFICIALS TOLTHE ASSOATED PRESS THERE WAS NO INDICAON AN ATTACK WAS MINENT. VIOLENT CRIME IN THE U.S. DOWN FOR A SECOND STRAIGHTEAR. THE F.B. RELEASED ITS ANNUAL ASSESSMENT TODAY. RDERS WERE DOWN ALMOST 4% FR THE PREVIOUS YEA AND THE NUER OF RAPES DECLINED TO THE LOWEST LEVEL IN 2YEARS. THE SOUTH HAD THE GHEST CRIME RATE THE NORTHEAST HAD THLOWEST.
>> FAMILY ANFRIENDS SAID HE H A HEART ATTACK ON THE FARM IN MARYLAND'S EASTERN SHORE. POWELL BECAME E OF Mr. CART'S CLOSEST ADVISORS. THE WHE HOUSE COMMICATION -- COMMUNICATIONS DIRECTOIN 1977 TO 1981. AND LAR YEARS HE FOUNDED A PUBLIC RELATIONS FIRM IN WASHINON. JODYOWELL WAS 65 YEARS OLD. AND STILL COME ON THE NEWSHOUR TONIGHT, E PARTISAN DIVIDE, AND THE FATHER OF E GREEN REVOLUTI. THAT FOLLOWS TWO TAK ON THE FINANCIACRISIS: WHAT HAPPENED, AND WHAT'S NT. ECONOMICS CORRESPONDT PAUL SOLM BEGINS WITH A LOOK BACK AT THE BIGGEST BANKRUPY IN AMERICAN HISTORY. IT'S PART OF HIS SERIEON MAKINGENSE OF FINANCIAL NEWS
>> Reporter: JUST ONYEAR O THE DAY LEHMAN BROTHERS COLLAPD AND WALL STREET CATAPULTED TOWARDS CATASTROPHE, NEW YORK ARST JEFFREY RAYMD MADE HIS WAY TO LEHMAN ADQUARTERS.
>> I'M WALKING UP 49th STREET. I TURN THE CORNER D BROADW IS COMPLETELY FULL OF TV UCKS WITH THEIR CONEUP AND THIS AND THAT. AND IT'S A MSIVE MEDIA SPECGO EL. -- SPECTACLE. AND I T UP MY RICHARD FOLD PAINTING AND JOINED THE FRAY
>> Reporte FULD WAS LEHMAN'S CEO, WILDLY BLAMED FOR DRIVING HMAN OFF A CLIFF AND THE WORLD ALONG WITH IT. RAYMOND WHO QUIT PR TO BEME AN ARTIST HAD BEEN PAINTI THE WIZAR OF FINANCE BECAUSE FIGURED THEY'D SELL. BUT AS WALSTREET BUCKLED HE THOUGHTIS USUAL FUSION JACKSON POLLOAC CAN'T CHUCK CLOSE COULD USE FEW ADDED TOUCHES FROM THE M ON THETREET.
>> WOULD YOU WRITE ON MY PATING, THE PORTRAIT OF CHARD FOLD. I PAINT NTROVERSIAL WALL STREET GUYAND LET THE COMMUNITY COMMENT.
>> WORTH $300 MILLION, THA IS PRETTY FUNNY.
>> Reporter: A YEAR TER HAVING SD HIS FIRST TO A LEHMAN BANR WHO LEFT THE FIRM IDISGUST BEFORE ITS DEMISE, RAYMOND IS BACON THSTREET WITH A SECOND VERSION. GENTLEMEN, COME WRITE SOMETHINON MY PAINTING. LIFE IS SHORT.
>> Reporter: SOLICITIN COMMENTS ONCMORE. >>HE ONLY RULE IS DON'T WRITE ON THE PNTING. Reporter: STRIKINGLY, MUCH OF THE WORLD OR THA SLICE OF IT, STILL CURS FULD AND LEHMAN FOR OUR COLLECTIVE YR OF HORROR. AND SOOES FORMERLY MAN VP LAWRENCE MONALD. ONE OF A GUP OF SKEPTICS WIIN THE FIRM DURING THE SALAD DAYS. >>T THE END OF THE DAY I THINK THERE WAS GROSS NEGLIGENCE OF THE HIGHT ORDER AT LEHMAN BROTHERSN TERMS OF IGNING THE GRING PROBLEMS OF SUBPRIME THERE WERE PEOE THAT TRIED TO STOP THIS MADNESS. THERE RE PEOPLE THAT TRIED, ONBY ONE BY ONE. THEY WE SQUASHED LIKE GRAPES AND SILENCED. AT LEHMABROTHERS YOU KEPT YOUR HEAD DOWN. YOU DID YOUR JOB, OR Y LOST BOTH. >>eporter: IN FACT, McDONALD WHO HAS WRITTEN A OK ON LEHMAN'S COLLAPSE WAS A MEMBER OLEHMAN'S DISTRESSED DEBT GRP WHICH MADE DTS AGAINST BONDS LIKE PORT-BACKED SURITIES, TREATINGHEM AS INSECURITIESYOU MIGHT SAY.
>> ANDN 2008 THAT GROUP MADE OVER $2 BILLION AND A T OF THAT WAS PAID BETTING AGAINST AT THE EXECUTIVES WERE DOING UP ON TT 31st FLOOR. SOHE PEOPLE THAT I WORKED WITH WERE BETTG AGAINST THE TOXIC ASSETS AND ON THE PEOPLE ON 391s FLOOR WERE GETNG DEEPER AND DEEPER AND DEEPER INTO.
>> Reporr: McDONALD SAYS LD BECAME SO INTOXICATED WITH THE MONEY TO BE MADE IN THE RE ESTATE BOOM LEHMAN HAD HELPED FUEL WAS DESPERATE FOR THE FIRM ITSELF TO INVEST IN IT.
>> LEHMAN BROTHE SURVIVED THE CIVIL WAR, THEREAT DEPRESSION, WORLWAR I, WORLWAR II, 9/11 BECAUSE IT WAS IN E MOVING BUSINESS. WAS AN INVESTMENT BANK. ITAISED MONEY FOR COMPANS, BROUGHT COMPANIES PUIC, SIMPLE BUSINESS, YOU KNOW, CAMPBELL SOUWANTS TO BUILD A NEW ANT IN THE MIDWES LEHMAN BROTHERS LOANS -- GIVETHEM $10 MILLION AND SELLS $10 MILLION WORTH OF BONDS STOCKS. D COLLECTS A FEE. THAT IS THE MOVING BINESS T IS VERY, VERSAFE, TRADITIONABUSINESS. AROUND 2001, 2002, 2003 LEAN BROTHERS GOT DEEPER AND DEEPER AND DEEPEINTO THE ORAGE BUSINESS. MPLEX TRADES AND CREDIT DERIVATIVES, CREDIT CMBFs LIKE COMPLEXECURITIES IN COMMERCIALEAL ESTATE, RESIDENTIAL REAL EATE.
>> Reporter: MOREOR SAYS LEHMAN LAWYER HARV MILLER, LEHMAN WAS BUYING THESE RE ESTATE BONDS ON EDIT, SHORT-TERM LOANS ITOOK OUT TH A MEAGER 2.5% DOWN.
>> IRELIED ENTIRELY UPON CREDIT. AND IT WAS LEVERAGED VERY HIGH. AT ONE POINT I THI LEHMAN WAS 40 TO 1. Reporter: 40 TO 1 MEANING AT FOR EVERY DOLLAR THAT LEHMAN PUT IN,HEY BORROWED 40 FROM MEONE ELSE.
>> EXACTLY. WHEN THE MARKET CHCED 3%, THE COMPANY KE LEHMAN GOES FROM LET'S CALL SOLVENCY ALMOST INSOLVEN.
>> IAS WRITE TO RIGHT ROYAL ALLEY -- AND STILL BE RIDICULOUSLY WORK, I COULD DO THA
>> Reporter: ANGRY AMANY STILL ARE,EOPLE ON THE STREET MAY NOT UNDERSTD THE NUANCES MODERN NANCIAL ENGINEERING. BUT THEN SAYS McDONALD, NEITHER DID E TOP BRASS AT LEHMAN.
>> THEY HAD A DEEPDARK SECRET. THEY DN'T WANT TO BE EXPOSED FOR ALTHAT THEY DIDN'T UNDERSTAND. WE HADOST NUCLEAR PHYSICIST BRAINPOWER THAT THOROULY UNDERSTOOD CREDIT DERIVATIVES, THOUGHLY UNDERSTO THE LEVERAGE IN THE SYSTEM. THESE PEOPLE WERE IGNOD. I ME RICHARD FULD, THEY HAA PRIVATE ELEVATOR, HIS DRIVER WOULD CALL LEHM BROTHERS ATHE FRONT DESK AND THE FRONT SK WOULD PRESS A BUON AND ONE OF THE ELEVATORS IN THE SOUTHEAST CORNER OF THE BUILDING WLD BECOME FROZEN. A SECURI GUARD WOULD COME OVER AND HOLD IT UNTIL Mr. FULD ARRIV IN THE BACK DOOR. HE COMES INTO THE CK DOOR, SO TRE IS ONLY LIKE 15 FEET WHERE RICHARDKING RICHARD FU IS EXPOSED TO E RABEL I GUESS YOU WOULD CALL THE Reporter: IS THAT SO UNUSUAL FOR A CEO. BUT DIDN'T FULD'S FIRM BNG DOWN THE WHOLE HOUSE OF CARDS? WE DIDED LEHMAN WYER HAR REE MILLER.
>> I THINK TT IS A VERY SIMPLISTIC VIEW OF THE WORLD. YOU HAVE TO LOOK AT THE ENTIRE FINANCIAL COMMUNI. AND IF YOU LOOK THE WALL STREET FIRM, TRADING BECAME THE BIG PROFIT CTRE. AND IT WASN'T ONLY JUST TRADING SECURITIES, IT W ADING FOR PROPRIETARY ACCOUNTS. THAT WHERE THE BIG MONEY WAS. AND AS THIS CONTINUED,HO BECA THE CEOs OF ALL OF THESE FIRMS. TRADERS. BECAUSE THEYERE PRODUCING ALL THE PROFITS.
>> HE WAS DICK FULD WAS TRADER.
>> Reporter: AS S THE CEO OF GDMAN SACHS AND FUTURE JEFFREY RAYMOND SUBJECTS KE MORGAN STANLEY CEO JOHN MACK, FOER MERRILL LYNCH CEO STANLEY O'NEILL.
>> STAN O'NEL KEPT TELLING HIS PELE WHY AREN'T REMORE LIKE LEHMA WELL, YES, THERE W A MANAGERIAL MISTAKE IN BUSISS JUDGEMENT, IN CONCENTRATING ON DERIVIVES. IN CONNTRATING ON SECURITIZED REAL EATE TRANSACTIONS. BUT THATAS ON THE PREMISE AT Mr. GREENSPAN AND A LOT OF OTHERS SAID DON'T WORRY ABOUT IT. HAVE THE PERFECT MARKET. THE WILL NEVER BE ANOTHER DEPRESSION. THERE IS ENOUGH FAULT TO G AROU SO THAT YOU COULD FI UP A TRAIN FROM HERE TO SHINGTON D.C..
>> Reporter: IFACT, AS HARVD PROFESSOR AND FORMER WALL STREET REGULATOR RORT GLAUBER, PRETTY MUCH EVERYBODY WAS BOARD WITH DICKULD.
>> IT IS VERY EASY IN RETROSPECT TO OK BACK AND SAY MY GOD, HOW COULD THEY HAVE BN SO DUMB. BUT HE WASN'T THAT MUCH MO AGGRESSIVE A MORE EXPOSED THAN H COMPETITORS.
>> HE MADE $300 BILLION -- 300 MILLIO DIDN'T HE.
>> YOU SHOULD WRITE AT ON THE PAINTI. >>LL RIGHT, I'LL DO IT.
>> Reporte DICK FULD WHO DECLED TO TALK ON CAMERA WAS BROUGHT FORE CONGRESS AFTER THE COLLAP IN PRETTY OF THE SAME SPIT OF ANTIPAY.
>> DID YOU MISAD YOUR INVESTORS, AND I REMIND YO SIR YOU ARUNDER OATH.
>> NO, SIR. WE DID NOT MISLEAD OUR INSTORS. AND TO THE BEST OF MY ABITY, AT THE TIME GIVEN THE INFORMATION THAT HAD, WE MADE DISCLOSURES THAT WE FULLY BELIED WERE ACCURATE.
>> Reporter:OOK, SAYS HARVEY MILLER, FULD BEEVED IN WHAT HE WAS DNG.
>> I THINK YOU HAVE TAKE INTO ACCOUNT TT DICK FULD, I THINK OWNE$10 -- 10 MILLION SHARES OF HMAN. HE NEVER SOLD A SHE.
>> Reporter: YEAH, B WHEN PEOPLE HR THAT HE TOOK 3, 400 MILLION DOLLS OUT OF THE FIRM IBONUSES IN THE YEARS LEADING UP TTHE ISIS, NOT GOING TO BE A WHOLE LOT OF SYMPATHY FO THE FACT THAT LOST MONEY ON THE STOCK. >>UT YOU HAVE TO LOOK AT THE REST OF THE WORLD. WHAT WERE PEOPLE MAKE ON WALL SEET DURING THE YEARS THAT HE WAS THE CEOF THE VERY SUCCESSFUL FINANCL INSTITUTION. Reporter: YEAH, BUT IT IS SUCCESS THAT TURNED OUT TO BE A SHAM.
>> NO, IT WASN'T SHAM. LEHMAN, AFTER ALL,ERFORMED EXTRRDINARILY WELL OVER MANY, MANY YEARS OHIS TENURE. LEHMANAME FROM VERY SMALL TOHE FOURTH LARGEST INVESTMENT BANK. FOR MANY YEARS PEOPLWERE VERY IMPRESSED BY TH.
>> Reporr: PHYSICALLY MAN'S BETS BEGAN TO SOUR MAKING SHORT-TERCREDITORS DOUBT ITS CAPITAL, COATERAL AND CREDIBILITY. AND ON THAT MID-SEPTEMBE WEEKEND 2008 SAYS LAWRENCE McDONALD, LEHMA BRS FINALLY SAW THE HANDWRING ON THE WALL.
>> THEY WERE WARNING T GEITHNER, WARNING HANK PAULSON D BEN BERNANKE, IF YOU LET LEHMAN FAIL T WILL BE THE ONEIG MASSIVE MINO T WILL DESTROY THE GLOBAL ECONOMY AND TAKE T A T OF BANKS WITH IT.
>> Reporter: BUT THE GOVERNMENT DID LET LMAN IL. BECAUSE IT H TO MAKE AN EXAMPLE OF SOME FIRM? BECAUSE, ACCORDING TO SO REPORTS TREASU SECRETARY PAULSON DIDN'T LIKE OR TRUST DICKULD? WHATEVER THE REASON,HE WORLD ECONOMY FROZE ALMO IMMEDIATELY EREAFTER A STILL HASN'T REALLRECOVERED.
>> ARE YOU AN EMBARRSMENT. BURN IN HELL. INFLICTING A LITTLE TOAST TO YOU ALREADY.
>> Reporte WE HAD ONE LAST ESTION FOR LEHMAN'S LAER.
>> IS DICK FD AS MEAN AS HE ISOMETIMES PORTRAYED AS LOOKING?
>> MY FEW MEETINGSITH DICK IS HWAS A PERFECTLY PLEASANT MAN. RY DEPRESSED. VERY USET ABOUT WHAT HAPPENED. I THINK THOSE BLACK SHOWS UNDER HIS EYES CE FROM NOT SLEEPING AND SAYING W DID THIS HAPPEN. WHAT DID I DO? ULD I HAVE DONE ANYTHING SE?
>> Reporr: JUST SOME OF E MANY QUESTIONS HE AND EVERYONE ELSARE STILL FACED WITH A YR AFTER LEHMAN'S COLLAPS
>> Woodruff: JEFFREY BRO LOOKS NOW ATHERE
>> Woodruff: JEFFREY BROWN LKS NOAT WHERE THINGS STAND ONE YEAR LATER.
>> Brown: AND JOINING ME F THAT ARE NASSIM TALEB, A STATTICIAN, TRADER AND AUTHOR OF SEVERAL BOOKS ON PROBABILY AND RISK, INCLUDING HE BLACK SWAN." HE'S AN ADVISOR TO UNIVERSA INVESTMENTS, AND TCHES AT NEW YO UNIVERSITY. NALD MARRON IS CHAIRMAN AND C.E.O. OF LIGHEAR CAPITAL, A PRATE EQUITY FIRM. AND ALAN BLINDER, PROFSOR OF ECONOMICS AT PRINCON UNIVERSITY. HE WAS VICE CHAIOF THE FEDERAL RESERVE FROM 1994 TO 1996. DONE ALL MARRON, YOU WERE AT THE SPEECH TOD, WAS THE ESIDENT RIGHT TO WARN OF COMPLACENCY ON WALL STREET AS ENOUGH CHANGED IN THE YEAR SINCE LEHMAN COAPSED? >>EAH, I THINK A LOT HAS ANGED. HE WAS VERSTRAIGHTFORWARD. THINK HE GAVE AN OUTSNDING SPEECH. HEAS ARTICULATE, HE CERTAINLY KNEW T ISSUES. BASICALLY HE SAITHREE THINGS, E FIRST ONE IS WE NEED AN AGENCYO PROTECT INDIVIDUALS AGAINSOTHERS WHO CREA PRODUCTS AND AGAINST THSELVES. SECOND, WE NEED MORE RELATION TO REGULATE ALL ESE SECURITIES FIRMS AND BANKS. AND THIR WE NEED LEGISLATIVE WER TO MAKE SUREHIS NEVER HAPPENS AGAIN. TH SOMEHOW IT CAN BE STOPPED BEFORE IT GOES OVE THE EDGE. AND I THINK HE DELERED CH OF THOSE POSITIVELY. OBVIOUSLY GOD IS IN E DETAILS ON THE THINGS. BUT THIS IS CERTAINLA SPCH AND A SET OF ISSUES THAT WOULDN'T HAVE OCCRED A YE OR YEAR AND A HALF O. IT WAS AN IMPORTANT ANGE.
>> Reporter: WELL, NASSI LEB, YOU HAVE WARNED OF INSTABILY FOR MANY YEARS BEFORE WHAT ME TO PASS OCCURRED. SO WRE DO YOU THINK WE ARE NOW?
>> STILL THEAME SITUATION. WE HAVE THE SA LEVERAGE IN THE SYSTEM THAT WE HAD BEFO. THE TWO BIG TO FAIEFFECT IS RIGHT THERE, DIFFERENT FROMHAT IT WAS BEFORE. D BANKS ARE TAKING THE SAME RECKLESS RISKS TH DON'T UNDERSTAND AS THEYID BEFORE, TH THE SAME SCNTIST MANAGING THE RISK. DON'T SEE WHAT HANGED -- CHANGED. AND WE HAVE 6 MILLION AMERICANS AT HOME NOW MORE THAN WE HAD BEFORE. I DON'T SEE WH CHANGED. THE RISKS ARE STILL THERE. WE NEED TO LOWER THE LEVERAGE, MAKE THE WORLD MORE RUST. AND IT'S NOT.
>> Reporte ALL RIGHT. A LOOF THINGS TO PICK UP THERE. BUT LET ME BRINGN ALAN BLINR, FIRST, KIND OF GENERAL ASSESSNT. THE PRESIDENT DID TA ABOUT GROWING STABILY AND GAVE CRIT TO HIS TEAM FOR BRINGING TT ABOUT. YOU' TALKED ABOUT THAT ON THIS PGRAM IN THE PAST. THE NEED FOR ALL OF THAT WHAT DO YOU THINK W?
>> WELL, I THINK THINGS LOOK ENORMOUSLY BETTER AN THEY WERE SAY SIX MONTHS AGO, GUESS THE BOTT OF THE STOCK -- I THINK PRESIDENT OBAMA CALLED THE BOTTOM OF THE STOCK MARKETN MARCH 9TH. I THINK THINGSIS TEAM HAVE DONE HAVE HELPED A L. I THINK THINGS THE F HAVE DONE HAVE HELPED EVEMORE. THE FED IS NOT PART OF HIS TEAM, I MIGHT POINT OUT,S AN INDEPENDE AGENCY AND NEEDS TO STAY THAT WAY. BUT BETWEEN THTREASURY AND THE FED AND THE IC AND A FEW HERS, I THINK THEY HAVE MADAN ENORMOUS DIFFERENCEOING, BY THE WAY, EXTRAORDINARY THINGS THAT I'M SURE IF YOU ASK ANY OF THEM TWO YEARS AGO WL THEY EVER DO SOMETHING KE THAT, THEY WOULD HAVE SA NO.
>> Reporter: WL, LET'S PI UP ON SOME OF THE ISSUES YOU HAVE ALL RAISED . MARRON, Mr. TALEB WAS TALKING ABOUT THE O BIG TO FAIL DOCTRINE. NOW INART OF THE CONSOLIDATION THE INDUSTRY AS THE LAST YR, PART OF WAS TO ALLOW A LOT OFNSTITUTIONS TO SURVIVE. SO HAVE HE WITH EATED RGER INSTITUTIONS THAT ARE STILTOO BIG TO FAIL OR EVEN BIGGER THAN THEY WERE BEFORE?
>> YEAH, THE KEY QUESTIO I THINK WHAT WE DID, FIR OF ALL IS WE BROUGHA LARGER PERCENTAGE OF WALL STRT UNDER THE BANKINREGULATORS, THE FED. AND AT WAS A NECESSARY THING TO DO. I'M NOT SURE IT WATHE BEST THG TO DO. BUT WE HAD TO DOT. AND THAT IN TURN H RESULTED IN OBVISLY LOWER LEVERAGE IN VARIOUS CONTRO THATRE GOING THERE. THE OTHETHING THAT WE DID, OBVIOUSLY, ITELL THE PUBLIC AND THE CLIENTS A THE WORLD THAT THE ARE A FEW INSTITUTIONS THAT AR GOING TO BE ERE NO MATTER WHAT. RESULT OF THAT IS THEYRE GETTING BIGGER OPORTIONALLY TO THE REST OF THE SYSTEM. I'M NOT RE THAT IS A GREAT THING. AND I THINK ONE OF THE QUESTIONS YOU HAVE TASK ABOUT, TOOIG TO FAIL, ARE THEY TOO BIG TMANAGE. PART OF THIS WHOLE BUSESS THAT WDON'T TALK ABOUT IS TALENT. THE TALENT TO MANAGE ALL THE COMPLEX PRODUCTS, SERVICES THAT ARE PRODUC. AND THIS IS AN INDUSTRY AT CAN EALY SPAWN OTHER GANIZATIONS SO I THINK WHAT YOU ARE GOING TO SE GOING FORWARD, WITN THE LITATIONS OF CONSULTATION, A LOT OF TALENT VING TO SMALLER ORGANIZATION FINDING A Y TO BUILD THEM AND TO COMPETE IN THE AL RLD. THE QUESTI IS WILL THE NEW ENCOURAGE THAT OR WILL I DIOURAGE IT. THIS COUNTRY AND WALL STREET ASK BUILT ON BEING TREPRENEURIAL. THTREND THAT WE ARE GOING TO N IS BASICALLY THE REVERSE.
>> Reporter: M TALEB, YOU ARE KING THIS FURTHER.
>> Reporter: YOU SEE THE CHANCE FOR CONTINU MAJOR FAILES LOOKING AHEAD? >>ELL, I THINK WHAT'S HAPPENG IS BOTH RISKY AND MORAL. WHY IMMOREAL? MBER ONE T WE ARE TRANSFORMING PRITE DEBT INTO PUBLIC DEBT. IVATE DEBT NORMALLY WITH A SYSTEM OF TRANSFORMI DEBT THROUGH BANKRUPTCY DISAPPEAR. WHEN YOU FAIL YOU DISAEAR. 'RE TRANSFORMING THAT INTO DEBT FOR OUR CHILDREN. AND OF COURSE WE'RE GOG TO HAVE TO RAISE BONDS WITH T FICIT AND THAT MAY CAUSE INFLATION. THE OTR PROBLEM IS THAT THE OBAMA ADMINISTRATION H BEEN REWARDINGAILURE, OKAY. INSTEAD OF FRIGHTENI PEOPLE WHO ARE COUNTERCYCLICAL, JUST KE THEY GAVE A AL WITH A CASH FOR CLUNKERS F PEOPLE WHO BOUGHT THE RIGHT C, I BOUGHTHE RIGHT CAR, I'M NOT ELIGIBLE FOR CASH FO CLK ARES I'M SUBSIDIZING THE ONES W MADE THE MISTAKE. LIKEWISE YOU HE RAISED TAXES, PENALIZING THOSE WH E COUNTERCYCLICAL, DOING OKAY IN 2009 ANDIVING THE TAX BREAK TO TSE WHO GOT US HERE. I HAVE NOT SEEN FR THE OBAMA ADMINISTRATI THE RIGHT ND OF LEADERSHIP AT WE SHOULD BE HAVING. I VEN'T SEEN ANYBODY STAND UP AND SAID WE ND BLOOD, SWEAT AND TEAR LET'S REDUCEHE DEBT IN THE SYSTEM AND LET'SOT TAX OUR CHILDREN WITH L THESE PROGRAMS. HA NOT SEEN THAT. THE ONLY PEOPLE WHARE TALKING ABOUT ARE E U.K. COERVATIVE PARTY. TSIDE OF THAT, I HAVE NOT SEEN ANYTHING. THE RISK IN THE SYSTEMS BEING TRANSFERRED TO OUR CHILDR. THAT'S NOT ACCEPTABL
>> Rorter: Mr. BLINDER, WHY DON'T YOU COME BACK ON THAT BECAUSE YOURE TALKING ABOUT THE ROLE OF THE GOVERNMENT IN YING TO INTERVENAND AT THE RIGHT TIME. SO RESPOND.
>> YEAH,ET ME SEPARATE THAT INTO TWO RESPONSES VE BRIEFLY. FIRSIS THE FISCAL IMULUS. THE ARGUMENT FOR THIIS AS OLD AS CANE. WHEN THERE INOT ENOUGH DEMAND IN THSYSTEM TO GET PEOPLE EMPLOYED OR TO PREVENT THEM FROM LOSI THR JOB, ONE THING THE GOVERNNT CAN DO IS SPEND MORE OR CUT PELE'S TAXES AND GET THEM TO SPEND RE, OR SOMETHING EE TO INDUCE SPENDING BUT ALL OF THOSEHINGS RAISE THE DEFICIT TRANSTOR LEE. NOT FOREVER, BUT TRANSITORILY AND WE' STILL INHAT POSITION. AND WE'RE A LOT BETTERFF TODAY THAN IWE HAD TRIED TO BALANCEHE BUDGET ON THE BACKS OF A -- I DON'T NT TO SAY A DYING -- A SI ECONOMY AT THE BEGINNINGF THIS YEAR. THE REST OF IT HOPEFLY WILL NOT BE SPENDING, IT'S IN T FORM OF GUARANTEES, ASSET RCHASES, LOANS. SOME OIT AS PRESIDENT OBAMA HAMENTIONED HAS ALREADY CO BACK TURNING A MODEST PROFIT TOHE U.S. GOVERNMENT. SOME OF IT WILL PROBABLY BE LOST. BUT LOST FOR A GOOD ASON. LOST SO TO PREVENT OR AT LEAST REDUCE TO DIMINIS TO WHAT BEN BERNANKE CALL GREAT DEPRSION 2.0. IF WHAD GONE DOWN THAT PATH, THE AMOUNTTHE LOSSES TO AMECANS WOULD BE A MULTIPLE OF THE DEBT TT IS PILING UP. NOW ONE LAST POINT. WE DO NEED TO ADDRESS AT DEBT DON'T WANT TO SOUND LIKE I'M MPLETELY RELAXED ABOUT PILEAND PILES OF DEBT, ABOUT $9 TRIION IN DEFICITS OR THE NEXT TEN YEARS ORAYBE MORE. I'M NOT RELAD ABOUT IT. WE DO NEED TO DO SOMETHI ABT IT. BUT THE PADOXAL ANSWER IS NOT T. IT'S NOT TIME TO WHDRAW THAT STIMULUS.
>> Rorter: Mr. MARRON, YOU WANT TO COME IN ON THIS SUECT.
>> YEAH, I D I THINK. I THINK THE ANSWER IS ONE HAS TO BE VERY PRACTAL ABOUT THIS. LL STREET FOR A 100 YEARS WAS IN THEUSINESS OF MAKING ILLUID ASSETS LIQUID. FIRST BOS, THEN STOCKS, EVEN COMPANI WITH LBOs. WHAT HAPPENED IN THE LAS COUPLE OF ARS IS LIQUID ASTS INCLUDING MORTGAGES BECA ILL LIQUID. THE WHOLE SYST STARTED TO FAIL BECSE PEOPLE IN BIG FIRMAND TRADERS RECOGNIZING THEY ME A MISTAKE COULDN'TELL WHAT EY HAD TO SELL. THAT WAS THE FST THING. AND VALUES DECLINED AS WELL AS THE ECONOMI THAT UNDERLIE THOSE VALUES. BYHROWING ALL THIS MONEY INTO THE SYSM, THE GOVERNMENT HAS CERTALY IMPROVED THA THE SECRETARY ING IS WHAT WE KNOW FOR SUREIS ALL THE MONIES THAT'S GONE INTO E SYSTEM, ONLY SOME IT WILL WORK AND SOMOF IT WON'T. LL THE ADMINISTRATION BE CAPABLE OF TAKING E MONEY THAT ISN'T WKED AND REDEPLOYING IT? THAT IS THE KEY THIN AND THIRD WHAT'S GNG TO HAPPEN TO THE FLOW OMONEY IN THE SYSTEM? FOR EXAMPLE, BEFORE THIS STARTED,ONEY MARKET FUNDS HAD ABOUT A BILLION, A TRILLION A A HALF OR $2 TRILLION. IT IS TO YOU UP TO ABOUT $3.7 TRILLION. WHY? IN THE MAIN BECAUSE PEOP ARE SCARED. PUTTING IN MONEY, ESSENTIALLY IN CASH, GET NOTHINRETURN. THE WAY RKETS WORK AND THE WAY A SYST WORKS IS YOU HAVE TO VE PEOPLE HAVING A FUNDAMENTAL CONFIDEN IN THE SYEM. A KEY ELEMENOF THAT IS IF THEY BUY SOMHING, THEY ARE GETTG VALUE AND THEY OULD BE ABLE TO SELL IT WHENEV THEY WANT TO. THATEAR OF THAT SITUATION IS O OF THE REASONS THAT WEAVE THIS PROBLEM. SO THE FINAL ISSUE FORHE GOVERNMENT NOW, I THINK, WHEN IT INKS ABOUT WHAT TO DO IN BUILDING TS CONFIDENCE, IT HAS TO RAIS THE ABILITY TO LENTO SMALL BUSINESST HAS TO RAISE THE ABILITY FOR PELE TO BUY USES. D IN THE BROADER SENSE, THEY HAVE TOEGAIN THE CONFIDENCE IN THE SYSTEM ONE WAY TO DO THAT IS TRANSPARENCY WE CATED TOO MANY PRODUCTS THAT NOBODY, EVEN THE PR COD UNDERSTAND. AND THE SEND WAY IS STANDARDIZATION. SO YOU HAVE ENOUGH OF THE SING PRODUCT. SO YOU CAN HAVE A MARKET. THE SIMULTANEOUS EQUATN. IF WE DON'T DO THE THINGS, THEN THE BR STORY WILL HAPPEN AGAIN IF WE DO THESE TNGS, THEN WE'LL SET THE BASE AS ALN SAIDOR GOING FORWARD. NONOW, NOT YET, HOPEFULLY SOON Reporter: LET ME LET Mr. TALEBACK ON THIS, BEUSE PART OF THIS QUESTION IS ABOUT GOVEMENT REGUTION, AND WHAT THE GOVERNMENT MHT BE ABLE TO DO, WHE PRESERVING THE ABILITY OF RISK IN THE SYSTEM.
>> WELL, BEFORE TALKING ABOUT REGULATION, AGAI REGUTORS FAILED US HERE. LET'S TALK ABOUT THE ECONOMIC ESTABLISHMENT. ALL THESE MEURES, TRANSITORY DICIT, OH, WE LL PAY IT BACK. 8S FROM PEOPLE USING MODELS THADO NOT PREDICT WHAT IS GOING . THEYID NOT SEE THE ELHANT IN THE ROOM AS I SAID, AND ALL THESE MOLS ARE COMPLETELY UNPREDICTIVE OF ANYTHING. SO DON'T PREDI. LET'S TRY TO LOWER DEBSO WE DON'T HAVTO PREDICT. AS TTHE REGULATORS, WE HAVE TO REALIZE THAT THE REGULATORSOT US HERE BY FAVOURING RISK MEASURENT SYSTEM BY BANKS AND BANKS LOST $4.3 TRILLIONN FAILURES OF RI MANAGEMENT SYSTEMTHAT THE REGULATORS -- THVALUE OF RISKS AND REGULATORSRE THE ONES WHO HELP PEOPLE GET IN THEAA SECURITIES WITH ESE REGULATION SO REGULIONS ARE NOT A -- I AGREE REGULATIONAN DO A GOOD JOB B JUST BLIND REGULATION IS NOT THE SOLUTION. THE SOLUTION TO ME ITHE CANCERE HAVE THE SYSTEM. TOO MUCH DEBT AND LET'S ST TALKINABOUT PAINKILLERS. LET'S REMOVE THEUMOR. IT TAKES, YOU KNOW, RK TO REMO THE TUMOR. IT'SAINFUL TO REMOVE THE TUMOR. T THE SOONER WE REMOVE IT E BETTER AS FAR AS DELAYING IT, TRANSITOR TRANSITORY. THE DEBT TODAY IS THE SA DEBT AS A YEAR AGO, ACTUALLY IT IS INCREASING.
>> Reporter: M BLINDER W JUST HE A MINUTE LEFT. I WAS THINKING OF SOMETHG THAT Mr. TALEB JUST SAID. A YEARATER NOBODY COMES OFF LOOKING ALTHAT GOOD, DO THEY? THE PROS ON WALL STRT, THE REGULATORS IN GOVEMENT, AND THE ONOMISTS IN YOUR OWN PROFESSION. I SEE THERIS A LOT OF DEBATE ABOUT WHAT D WE KNOW WEROUR MODELS ALL WRONG? ABSOLUTELY. AND I WODN'T ABSOLVE ECONOMISTS IN MY OWN PROFESSION FROM THE GUIL LIST. I THINK THE GUILT LI IS VERY LONG. NOT EQUALLY WEIGED, OF COUR. BUT VERY, VERY LG FROM THE GOVERNMENTO THE PRIVATE SECTOR AND ALMOST YBODY YOCAN THINK OF. THE HEROES WERFEW AND FAR BEEEN THERE WERE A FEW PEOPLE THAT RE SOUNDING THE ALARM. THEY WERE T LISTENED TOO VERY MUCH. AND YOU KNOW, YOU DOT GET IN TA CATASTROPHE LIKE THIS WH JUST ONE OR TWO SMALL ERRS, IT TAKES A WHOLE LOT VERY LARGER HRS. D THAT'S WHAT WE HAVE, UNFORTUNATELY.
>> Repter: WE'LL LEAVE IT THERE, ALLEN BLINDER, NASS TALEB AND DONALD MARON, ANK YOU ALL VERY MUCH.
>> Wdruff: THERE IS MUCH MORE ABOUT THE FINANCIAL CRISIS ON OUR
>> Woodruff: THERE'S MH MORE ABOUT THE FINANCIAL CRIS ON OUR WESITE, newshour.pbs.org. YOU CAN LISTEN TO ALL PRESIDENT'S OBAMA'S WA STREET SPEECH; SEE WHATXPERTS SAY ABOUT E ORIGINS AND THE IMPACT OF THE MELTDOWN ONAUL SOLMAN'S BUSINESS DESK; A READ ABOUT LESSONLEARNED FROM THE COLLAPSE OF LEHMAN BROTHERS.
>> Woodruff: NEXT, ONE YEA AFTER THEN-CANDIDATEBAMA PROMISED A NEWRA OF BIRTISANSHIP, THE POLITICAL TONEN WASHINGTON AND ELSEWHERE REMAINS HEATED. GW IFILL HAS OUR STORY. .
>> THEY HAVE BECOMTHE HAMARK OF WASHINGTON DEBATE. SO MH SO THAT EVEN THE PRESIDENT WEIGHED IN ON THE MATTER ON "60 MINUTE LAST NIGHT.
>> THE TTH OF THE MATTER IS THAT THERE HAS BEEN -- THAT I HAVE BEEN RNING AGAINST SINCE I GOT IN OFCE. YOU'VE GOT A CONVERGCE TO MAKE. WORST RECESSION SINCE TH GRT DEPRESSION. I THINK WE'RE DEBATING SOMETHING AT HAS ALWAYS BEEN A SOUE OF -- IT'S NOT JUST HEALTH RE BUT ALSO THE STRUCTURAND THE SIZE OF THE RE OF GOVERNMENT. THAT'S SOMETNG THAT BASICALLY DEFINES THE FT AND THE RIT IN THIS COUNTRY. AND SO EXTREMES ON BOTH SI GET VERY AGITAD ON BOTH SIDES OUT THAT ISSUE. SO ONEF THE THINGS THAT I'M TRYING TO FIGU OUT IS HOW CAWE MAKE SURE THAT CIVILITY IS INTERESTING. THERE ARE ALSO THOSE WHO --
>> LATH EK AN EXAMPLE DURING THERESIDENT'S DRESS TO A JOINT SESSION OF CGRESS.
>> THE REFORMS, THE RERMS I'M PROPOSING WOULD NOT APPLY TOHOSE WHO ARE HERE ILLEGALLY.
>> REPUBLICAN CONGRESSMA SWRO WILSON WHO APOLOGED FOR S OUTBURST TO WHITE HOUSE CHIEF STAFF RAHM EMANUEL SAID YESTERDAY HE WILL GO FURTHER.
>> I AM NOT ING TO APOLOGISAGAIN. I APOLOGIZED TTHE PRESIDENT ON WEDSDAY NIGHT. HE SAID ANK YOU. D NOW LET'S GET ON TO A CIVIDISCUSSION OF THE ISES. BUT I APOLOGED ONE TIME. THE OLOGY WAS ACCEPTED BY THE PRESIDENT, BY THVICE PRESIDT WHO I KNOW. I HAVE NOT APOLOGIZEAGAIN. ALTHOUGH HOUSE DEMOCRATS THREATEN TO SANCTIONIM, WILSON'S APPROACWON SUPPORT FROM MANY THE CROWD OF TENS THOUSANDS OF PROTESTORWHO MARCHED TO THE U.S. CITOL THIS WEEND. GOVERNMENT, MANY HAVE COMPLAIN, HAS GROWN TOO LAE AND THE PRESIDENT TOO POWERFUL
>> WE DON'T WANTOUR NEW HEALTH CARE. WEON'T WANT ANY MORE TAX. WE DON'T WT ANY MORE STIMULUS. WE DON'T WANT ANY RE LIES. >>E'VE BEEN SCHARACTERIZED AS A MOB, AS TERRORISTS, AS RACIST AS GANGSTERS WHEN REAL WE ARE JU AMERICANS WHO ARE FED UP
>> Reporter: NEW POLLS SHOW ERICANS SPLIT ON THE PRESIDENT'S HEALTHARE PLAN. AND E DIVIDE IS IN CONGRESS WHE FEW REPS VE -- REPUBLICANS HAVE SIGNED ON. WHY HA'T THE PRESIDENT BEEN ABLE TCHANGE THE TONE IN WASHINGTON? AND WHAT IS FEEDING PARTANSHIP THROUGHOUTHE COUNTRY? FOR AT, WE TURN TO DEMOCRATIC CONGREWOMAN EDDIE BERNICE JOSON OF TEXAS, "NEW YORK TIMES" COLUMNIST ROSS DOHAT, AND NEWSHOUR REGULAR RICHARD NORTON SMITH, SCHOLAR-- RESIDENCE GEORGE MASON UNERSITY.
>> CGRESSWOMAN JONES ARE YOU UP THERE IN THE MIDDLE OF IT, IS IT ME ORO THINGS EM EXTRAORDINARILY LOUD RIGHT NOW. >>HINGS ARE LOUD. THE LOBBYISTS AND MANY OF THE INSURANCE REPRESENTATIS ARE ORGANIZING THE PEOPLTO BRING THIS DISCORD, A LOOF MISINFORMATION AND A LOTF UNTRUTH AND PEOPLE REALLY ARE WORRIE THE ECONOMY IS SUPPOSED BE DOINGETTER BUT AS LONG AS PEOPLDON'T SEE JOBS BEING CREATED, IS STILL GOING TO BE A SITUATION WHERE THEY WILL CONTINUEO WORRIED. BUT IT'S THE WORST TT I VE EXPERIENCED AND I'M IN MY 17th AR HERE.
>> YOU DON BELIEVE CONGRESSWOMAN THAT ANY O THIS IS YOU THINK IT'S L ORGANIZED BY PEOPLE WHO OPPOSE THE PRESIDE, ORGANIZATION CORPORATIONS.
>> WELL, I THINK SOME IT -- SOME OF IT IS VERY GENUINE BEUSE WHEN PEOPLE HAVE NEIGHBORS AND TO G OUT AND TA THE LEADERSHIP FOR GETTING ATTENTION, THEY I THINK SOME OF THE PELE ARE VERY INNOCT IN THIS MOVEMENT THAT IS GOINGN. BECAUSE TH ARE SHORING UP ALMOST -- SHOWINUP ALMOST ANYPLACE, SCREAMIN NOT LISTENG. SO THAIS JUST THE WAY A MOCRACY WORKS WHEN PEOPLE ARE UP SET A THEY ARE BEING LEADY A VERY POWERFUL LOBBY THAT DOES NOT AGREE WITH WHAWE ARE DOING.
>> ARE WE SAYING PART TSANGSHIP OR POLARIZION.
>> WE'RE SEEINBOTH, THE WOING OUT OF SOMETHING THAT HAS BEEHAPPENING FOR 50 YEARS IN THE ITED STATES WHICH IS THAT THE PARTIES ARE RTED BY IDEOLOGY IN A WAY TH THEY HADN'T BEEIN THE 40s, 50s AN60s. IT USED TO BE YOU HAD CONSERVATIVEEMOCRATS OFTEN IN THE SOUTHN STATES AND VERY LIBER REPUBLICANS IN THE RTHEAST. AND.
>> NOW YOU HAVE MUCH RE -- YOU COULD SAY A MUCH MORE RATNAL SYSTEM WHERE YOU HAVE A LERAL PARTY AND A CONSERTIVE PARTY. BUT WHATHAT MEANS IS THAT YOU ARE GOING TO HAVE ESPEALLY ON A BIG TICKET ISSUE LIKE HLTH CARE, REAL VERGENCE, REAL HEATED DEBATE AND REAL INTERPARTY TEION. I MEAN THIS N'T GEORGE W. SH CAME TO WASHINGTON EIGHT YEARS O, PROMISING TO CHANGE THE TONE A SAYINGE WAS GOING TO BE A UNIT, NOT A DIVIDER AND SO ON. D WE ALL KNOW HOW THAT WORKED O. SO I DON'T THI IT'S A BIG SURPRISE THAT YOU KNOW RACK OBAMA'S HEALTH CARE PUSH HAS PRODUCED TH KIND OF PASSION AND POLIZATION.
>> Rney: SO IS BIPARTISANSH TOO MUCH TO HOPE F ANYHOW?
>> WEL I MEAN I THINK IT'S TOO MUCH TO PE FOR UNDER THCURRENT POLITICAL ALIGNMENT, GIVEN THAT THE DEMOCRATS HAVE SUCH LARGE MAJORITIES IN CONGRESS, YOU ARE DEALINWITH A SITUATION, AND ACTUALLY THE PREDENT MADEHIS POINT IN HIS "60 MINUTES" INTERVI WITH THE DEMOCRATS HA 60 SEATS IN E SENATE. THAT MEANS THAT THDEMOCRATS BASICALLY OCCUPY THE POLITICAL LEFT AND A BIG CHUNK OFHE POLITICAL CENTER, SOHERE IN A SENSE NEGOTIATG WITH THEMSELVES ANTHE REPUBLICANS ARE OFF SOMEWHERE IN RIG FIELD. SO YOU WOU EXPECT THAT A LARGE DEMOCRATIC PARTY A A SHRUNKEN REPUBLICAN PARTY WOULHAVE A VERY HARD TIME FINDING COMMON GROUND.
>> SO RICHARD,F YOU ACCEPT THAT, WHERE IS THERE VALUE AT ALL IN BIPARTISANSHIP WHY NOT JUST FOR THINGS THROUGH.
>> OMY GOSH. LET ME GO BACK TO SOMETHING HE SAID. CAUSE IT MAY BE RATIONAL IN THEORY TO HAVE NEAT, LIBERAPARTY AND A CONSERVE TICH PARTY T WE SEE A LOT OF IRRATIONALITY ARISING OUT OF THAT EQUATION TH SUMMER. THE STRUCTURAL -- YOU OW THERE IS A REASOTHEY CALL IT THE HOUSE OF REPRESENTATIVES. IT REPRESENTS THE COUNTRY AND THCULTURE. AND AS THE PRESIDENT SAID, NOT ONLYHE POLITICAL CUURE HAS BEEN -- COURSEENED BUTHE COUNTRY HAS BEENOURSEENED. 40 YEARSGO PEOPLE WENT TO THHOUSE, IN PARTICULAR. THEY MAY HAVE BEEN LIBERAL OR CONSERVATIVES. ANTHEY FOUGHT LIKE CATS ANDOGS UNTIL 6:00. BUT AT THE ENDF THE DAY THERE WERE POLITIC INCENTIVES FOR TM TO SEEK OUT COMMON GRIND. CONSENSUS S NOT A DIRTY WORD. DIFFERENCES WERE SEEN SOMETHING TO BE NARROWED RATHER THAN EXPLOID. THOSE INCENTIVES HAVE BEEN TAKEAWAY IN THE CURRENT POLICAL CULTURE. CAE TV. I MEAN WE HAVE CABLE NEORKS THAT SHOULD BE GISTERED WITH THE FEDERAL ELECTION COMMISSION. WE ALL KNOW ABT THAT. BUT IT'S NOT JUSCABLE. RADIO, PRAGMATISM, CONSENSUS-SEEKING, THA DOESN'T MOVEHE RADIO DIAL. AND SO YOU HAVE ALL OFHESE OUTSIDE FORCES, INCLUDG LOBBYISTS WHOSE BUNESS, AND I WOULD SAY OSE PROFITABLE BUSINESS IT IS POUR KOSENE UPON THOSE DIFFERENCES RATHER TN TRY TO PUT OUT THE FIRE.
>> CONGRESOMAN, IF CONSENSUS RICHARD SUESTS IS NO LONGER WHAT IT ONCE WAS WA, DO YOU DO OUT THAT ON CAPITOL HILL, DO YOU JUST RGE FORWARD ON YOUR OWN SEPARE PATHS OR DO YOU T TO FIND A WAY TO ONE ANHER AND REASSURE THE PUBLIC AT THE ME TIME?
>> WELL, I DON'THINK WE SHOULD JUSFORGET IT. I THINK THERE HAS TO BE ME EFFORT TOWARD BRINGING PEOPLE IN IN TO TH DISCUSSION. I HEAR LOTS OF COMPLNTS ABOUT T BEING A PART OF THE DISCUSSI. I DON'T BELIEVE ALL OF THA BUT I THINK SOMEF THAT IS TRUE. NO ONE LIKES TO BE LEFT OU WHEN WE ARE DISCUSNG VARIOUS PROVISIONS I VARIOUS BILLS. I ALSO THINK THAT PELE HAVE TO DESIRE TO GEALONG AND TO BE A PART OF A TE AND HA A VERY HONEST QUESTIONS D REPRESENTATION OF THEIR CONSTITUENTS AND LOOK FOR ANSWERS I DON'T SEE QUITE AS MUCH OF THAT I SEE MORE OF ANFFORT TOG BE DISGRUNTLED, FINDINWAYS, GOCH WHAT TYPE OF THIN TO BRINUP AT GIVEN TIMES.
>> MAY I INTERRUPT YOUND ASK YOTHIS QUESTION. IS THERE SOMETHING ABOUT THISRESINCY WHICH BRINGS IT OUT?
>> I DON'T KNOW IF IT'THIS PRESIDEN. I HATE TO THINK THAT IT IS. BUT I DO THINK TT WE DO HAVE A PROGRESSIVE PRIDENT. IT'S ONE THAT PROBLY MANY PEOPLE DIDN'T THINK HEOULD BECOME PSIDENT. AND MANY ARE HAVING A VERY DIFFICULT TI ACCEPTING HIM AS PRESIDENT. BUT I THINHE'S EXTRAORDINARILSMART. D HE'S VERY, VERY EASY TO WORK WITH. HE'S MADE ANTTEMPT. HE REACHED OUT TO REPUICANS. I THINK THVERY FIRST TIME HE CAMTO THE HILL HE WAS INSUED. BUT HE STILL SEEMS TO BE ATTEMPTING TO WO WITH THEM.
>> WHAABOUT THAT, IS IT ABOUT THIS PRESIDEY, IS IT ABOUT THIS SET OF SUES, WHAT HAS MADE --
>> IT'S ABOUT ALL OF THOSE THINGS. AND YOU KNOW, CLEAY BARACK OBAMA'S RACE PLAYS SE ROLE IN THEIND OF, YOU KNOW, ND OF ANXIETY AND SO FORTH THAT ARE ROYALING THE POLITICAL RIGHT. ON THE OTHER HD IF YOU LO AGAIN AT THE LAST EIGHT YEARS OF GEOE W. BUSH AND THE ITE HOUSE, I THINK IT'S HARD TO SAY THAT THE WA'T AN AWFUL LOT OF THIS KIND OF ANGER, TS KIND OF PROTEST, THIS ND OF, I MEAN AGAINONGRESSWOMAN IS RIGHT THERE ARPEOPLE WHO ARE HAVING TROUBLE ACCEPTING THE LEGIMACY OF BARACK OBAMA'S PRESIDENCY. THERE WERE A LOT OF PEOP WHO HAD A TOUGH ME ACCEPTING THE LEGITIMA OF GEORGE W. BU'S PRESIDENCY AND NOT ONLY BAUSE OF THE EVENTS IFLORIDA IN 2000. SO AGAIN, I THINK THATHE PHENOMENON IS REAL, BUIT IS SOMETHING THAT HAS DEEP ROOTS TH JUST THE OBAMA PRESIDENCY. ANI MAKE ONE OTHER POINT JUST IN REONSE TO WHAT RICHARD SA. I MEAN I QUITE AGREE THAT PARTICULARLY THE MEDIA ENRONMENT, THE RISE OF CABLE NEWS, THE SE OF THE INTERNET A SO ON HAS CONTRIBUTED TO POLARIZATN, CONTRITED TO SORT OF GOCHA MOMENTS AND SO ON. A MOMENT LIKE JOE WILS'S OUTBUR WOULDN'T HAVE GOTTEN THE ATTENTION IT GE NOW, 40 ARS AGO. THAT SD, I DON'T THINK WE SHOULD OVEEMANT SIZE THE POTICS OF THE '60s AND '7. THIS IS THE EROF GEORGE LLACE AND BULL CONNER ON THE RIGHT ANTHE WEATHER MAN ON THE LT. MEAN WE WORRY ABOUT POLITICAL VIOLCE BUBBLING OUT OF THESE PROTESTS NOW. BUT ERE WAS REAL POLITICAL VIOLENCE IN AMICA IN THE '6 AND '70s. AND IN A SENSE WE HAVEOME A LONGAY.
>> AND IN FACT, WILL ECHO SOMETHING YOU SA. THOSE CTURES OF THE MONSTRATORS OVER THE WEEKEND, YOU KW, THERE WAS NOTHING SAIDS OFFENSIVE AS SOME OF THOSE SIGNS WERE, THAT WAS WORSE THAN PEOPLE STANDINGUTSIDE THE WHITE HOUSE SAYING HEY, HEY, LBJ HOW MANY KIDDID YOU KILL TODAY. SO I MN, THIS KIND OF, THE FEDERATION. FED-UPHAT WE SAW THIS WEEKEND IS OF THE RIGHT THE MOMENT IT HAS BE OF THE LEFT IN THE PA. >>ONGRESSWOMAN YOU ARE UP THERE ON CAPITOL HILL WHERE THE IS DISCUSSION UNDER WAY AMONG DEMOCRATS IN T HOUSE TO FURTHER CENSURE, OFFICIALLY CSURE JOE WILSON FOR H OUTBURST, DO YOU KNOW IF THAT IS ING TO HAPPEN?
>> I DON'T. I HAVE NOT BEEIN ANY DISCUSONS ABOUT IT.
>> WOULD YOU LE TO SEE IT PPEN? >>'M NOT SURE. I THINK THAT AS A MEMBER OF THIS BODY, TO RESPECT HIMSELF, I WOULD EXPECT HIM TO COME FORTH AND KE AN OLOGY TO THE BODY BECAUSE IT WAS A REFCTION ON THE TIRE MEMBERSHIP. IF I DOES T DO THAT, THEN I THINK THERE WILL BE OTHE WAYS, I'M NOT SURE WHAT EY ARE. AS I SAY, I HAVEN'T BE IN ANY DIUSSION BECAUSE WE GOT OUT RLY THE NEXT DAY AND IT WAS NOT THAT MUCH DISCUSSION ABOUT WHAWOULD HAPPEN. I HAD HOPED THAT HIS OWN RTY WOULD TAKE SOME ACTION AND NOT LEAVE IT TO THE OPPOTE PARTY JUST TO START SOME OTHER BIG ARGUMENAND GET SOME OF TH HATE MONGERING REIGNITED.
>> IT DOES SOUND LIKE THE ARMENTS AREN'T OVER QUITE THE QUESTI. CONGRESSWOMAN, RHARD NORTON SMITH AND.
>> TNK YOU ALL VERY MUCH.
>> Woodruff: FINALLY TONHT, WE REMEMBER THE FOUNDERF THE GREEN REVOLUTI THAT SAVED HUNDREDS OF MILL OF PEOPLE AROUND THE WORLD FROM HUER. NORMAN BORLA WAS A MIDWESTERN FARM BOY TURNED PLT SCIENTIST. HE WON THE NOBEL PEACE PRI FOR DEVELOPING NEWARIETIES OF WHEAT AND RICE THAT TRANSFMED AGRILTURE FROM MEXICO TO INDIA. HE DIED OVER THE WEEND AT AGE 95. TOISCUSS BORLAUG AND HIS LEGA, WE ARE JOINED BY GARY TOENNISSEN OF THE ROCKEFELR UNDATION, A LONGTIME BACKER BORLG'S WORK. . THANK YOU VERYUCH FOR BEING HERE. U WERE JUST TELLING ME YOU KNEW HIM FOR ALMOST DECADE YOU SAW HIM AS RECENTLY AS A MONTH AG TELL US A LITTLEIT MORE ABOUT WHO HE WASND HOW HE GOT INTERESTED IN PLTS.
>> WEL NORM WAS A FARM BOY, ALWAYS WAS INTERESD IN SCIEIFIC ASPECTS OF PLANTS AND AGRICULTURE, WAS CKY ENOUGH TO GET INTO THE UNIVERSITYF MINNESOTA AND WORKED HIS WAY THROUGH A Ph.D PROGRAM TRE AS A PLT PATHOLOGIST. AND THEY WORKED FOR A COUP YEARBEFORE HE JOINED THE ROCKEFELLER FOUNDATION PROGRAM IN MEXICO IN 1944. THAT WAS A COOP RATIVE PRRAM WITH THE MEXICAN MINIST OF AGRICULTURE AIMED AT TRYING TO IROVE AGRICULTURE. AND WHAT WAS THEN A COUNTR WHICH HAD SIGNIFICANT OD ORTAGES AND A FAIR DEGREE OF POLITAL UNREST DUE TO THOSFOOD SHORTAGES.
>> WHAT T HIM INTERESTED IN HUNGER, IN ISSUES OF HUNGER AND FOOD PRODUCTION
>> WELL, I THINK HE D A NARAL INTEREST IN TRYING HELP POOR PEOPLE. THROUGHOUT HIS WHO CAREER. THAT WAS AUNDERLYING MOVATING FACTOR WITH NORM. HE WAS ALWAYLOOKING TO HELP THE SMA SCALE FARMER, TO MAKE SURE TT PEOPLE WHO WERE LEFT BEND BY OTHERS, BENETTED FROM THE NEW DEVELOPMENTS IN AGRICUURAL TECHNOLOGIES.
>> IT STARTED IN MEXICO AND IT WENT, BUT EXPIN TO US, AS I READ TOY, HE, WHAT WAS SO INTERESTING WAS THAT HEN EFFECT WAS WORKING ON RINKING PLANTS TO INCREASE THE OUTPUT. THAT SEEMS CNTERINTUITIVE.
>> WL, NORMALLY THE PLANT PATHOLISTS, HIS FIRST OBJECTIVE WAS TO CONTROL THE DISEASES OF WHEAT IN MICO. AND SUCCEEDED WITH THAT QUITE SUCCESSFULLY AND MEXICO ACTUALLY CAME SELF-SUFFICIENT WI FOOD PRODUCTI IN 1956. BUT HE WENT ON A CREATED THESE, WHAT ARE CALL SEMI DWARF WHEAT PLANTS WHICH SHORT IN STATURE. THEY'RE STURDY PLANTAND WHEN YOU ADD FERTIZER TO THESE PLANTS, THEXTRA ENERGY FROM THE FERTILIZER GOESNTO PRODUCING MORE GRAIN, A LARGER HEAD ON THE PLANT. AND IN MEXICTHAT DOUBLE, TRIPLED WHEAT PRODUCON. ITAS A MAJOR BREAKTHROUGH. AND AS PART OFHAT MEXICAN PRRAM, THERE WAS A TRAINING COMNENT. AND SO SCITISTS FROM INDIA AND PAKISTAN, REALLY THROUGUT THE WORLD WERE NT TO MEXICO BY THE ROCKEFELLER FOUNDATI, BY THE U. AND OTHER ORGANIZAONS FOR TRAINING. SOME OF THEM AS SAID WERE DIAN SCIENTISTS. EY WENT BACK, TOOK SOME OF THOSE MEXICAN WHEA AND THEN THE INDIAN GOVERNME INVITED RM OVER TOISCUSS A WHEAIMPROVEMENT PROGRAM INDIA. AND IT TNED OUT THAT THOSE MEXICAN WHEA PERFORMED EXCEPTIONALLY WELLN INDIA AS WELL, UNDERIRRIGATED CONDITIO.
>> HOW DO YOU ANTIFY THE IMPACT THAT HE HAD. THE DIFFERENCE THAT HE MAD
>> WELL, MANY OF THE COUNTRIES LATIN AMERICA THAT WERE FOOD DEFICIT BECAME FOOD SELF-SUFFICIENT. INDIA, PAKISTAN,ANY OF THE COUNTRIEOF ASIA ARE TODAY EXPORTERS RICE AND WHEAT. NOT THAT THE AREN'T STILL A NUMB OF HUNGRY PEOPLE IN THOSCOUNTRIES, BUT THE PROBLEM NO LONGER A ABSOLUTE LACK FOOD ODUCTION. THEY'RE ABLE TO PRODUC OUGH FOOD, THEY NOW NEED TO DISTRIBUTE THAT FOOD RE BROAY.
>> GARY TOENISSEN, WE KNOW THATN LATER YEARS, IN RECENT DEATE -DECADES HIS WORK WAS CRITICIZED FOR THE ENVIRONMENTAL PACT, SOCIAL IMPACT. HOW DID HE DEAL WI ALL THAT?
>> WELL, HE LEARNEFROM IT. SOMETIMES THINK NORM GOT A LITTLERUSTRATED WITH SOME OF THE CRITISM BECAUSE SO OF THE CRITICS SEEMED TO MISS THE POINTHAT THE PRIMARY OBJECTIVE WAS TO FEED SRVING PEOPLE.
>> I MEAN THE ESSENCE THE CRITICS WERE SING THAT HE IS HURTI THE ENVIRONMENT, CHANNG PEOPLE'S LIVES IN HARMFUL WAYS. >>HAT'S RIGHT. WELLTHE MAIN THING WAS THE ENVIRONMENL IMPACTS. AND THERE RE SOME NEGATIVE ENVIRONMENTAL IMPACTS. USE OF PESTICIDES OR LET SAY PESTICIDES WERE OVERUSED. TO SOME DEGREE, FERTILIZER AND IRRIGATI CAN BE OVERUTIZED AS WELL. BUNORM RECOGNIZED THAT AS WELL. ISE ENED TO THE CRITICS. HE WAS O OF THE PEOPLE THAT PUT IT IN PLACE INTEGRATED PEST MAGEMENT PROGRAMS THAT SIGNICANTLY REDUCED PESTICIDE E. BUT HE ALWAYS WANT TO INCREASE PRODUCTION TO MAKE SUREHAT HUNGRY PEOPLE WERE FED AT THE PRIMARY OBJECTIVE.
>> HE S A VERY HUMBLE MAN. NEVER WANTED ANY ATTENON MSELF. BUT HE WAS ALSO A DREN MAN. I TRAVELED WITH HIM ON NUMBER OF OCCASIONS D HE WAS IN HIS 60sND 70s AT E TIME. I WAS MY 30s AND 40s. BUT YOCOULDN'T KEEP UP WITH NORM. AND HE WOULD AO PUSH GOVEMENTS. HE WOULD TELTHE FARMERS, YOVE GOT IT GO IN AND YOU'VEOT TO DEMAND FROM YOUR GOVERNMENT AT THEY HELP YOU INCREASYOUR AGRICULTURAL PRODUIVITY. SPONSORED A FERTILIZER SUM HIT IN AFRICAN -- RICA IN 2006.
>> ROCKEFELL FOUNDATION DID.
>> AND WE INVITED RM. HE JUST GAVE A R ROARING SPEE AND CHALLENGED THE SERAL PRESIDENTS THAT WERE THERE. THE PRESIDENT OFIGERIA SAID AFTERWARDS, WE'VE BEEN CHASTISED BY NM AND WE HAVE TO VE FORWARD AND GET OUR AGRICULTURE MONG.
>> YOU WORKERIGHT UP UNTIL THE END.
>> HE WORKED RIGHTP UNTIL THEND. HE WAS AGAIN WORKING ORUST SEASE. THERE IS AEW STRAIN OF RUST COMING AROU NOW THAT ISTTACKING WHEAT ONCE AGAIN.
>> GARY TOENISSEN OF THE ROEFELLER FOUNDATION, THANK YOU VERY MUCH FOR TALKING WITH US.
>> THANK YOU, IS AN HONOR TO BE AB TO TALK ABOUT NORM.
>> AND WE HAVE ATORY ABOUT THE PROBLEMS
>> Woodruff: WE HAVE A STORY ABOUT THE PROBLEMS FEEDING INDIA'S BURGEONING PULATION COMING UP LATER THISEEK ON THE NEWSHOUR YOU CAPREVIEW THAT REPORT ON OUR WEB SITE AT newshour.pbs.org. AGAIN, THE MAJOR DELOPMENTS OF THE DAY. PRESIDENT OBAMWARNED THE FINANCIAL INDUSTRY N TO CAUSE ANOTHEMELTDOWN. HE SPOKE ON THE ANNIVERSAROF THE LEHMAN BROTHERS COLLAP THAT TRIERED A CRISIS. AND CHINA FILEA COMPLAINT WITH THE WORLD TRADORGANIZATION IN A GROWING TRADE DIUTE WITH THE U. ON newour.pbs.org, TWO ONLINE- ONLYEATURES TONIGHT: AN INTERVIEW WITH ROCK ICON PAT ITH, REMEMBERING HER FRIEND JIM CARROLL, THE NEW YORPOET AND MUSICIAN W DIED FRIDAY; AND THE ORY OF THE MYSTERIOUS AND SOMETIMES MISUNDERSTOO FINAL WORK OF ARTIST MARCEL DUAMP, ON DISPLAY AT A SPECIAL EXHIBIT AT THE PHILADELPA MUSEUM OF ART. WE'LL SEYOU ONLINE, AND AGAIN HERE TOMORROW EVENIN I'M JUDY WDRUFF. THANK YOU, ANDOOD NIGHT. MAJOR FUNDING FOR THE NEWSHO WITH JIM LEHRER PROVIDED BY: INTEL. SUPPORTING MATH AND SCNCE EDUCATION FOTOMORROW'S INNOVARS. THE NATIONAL SCIENCE FNDATION. SUPPORTI EDUCATION AND REARCH ACROSS ALL FIELDS OF SCIENCE AND ENGINEERG. AND WITH THE ONGOINGUPPORT OF THESE STITUTIONS AND FODATIONS. AND... THIS PGRAM WAS MADE POSSIBLE BY THE CORPORAON FOR PUBLIC BROCASTING. D BY CONTRIBUTIONS TO YOUR P STATION FROM VIERS LIKE YOU. THANYOU. Captioning spsored by MacNEILEHRER PRODUCTIONS Captioned by Media Aess Group at WGBH access.wgbh.org
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