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Lou Dobbs Tonight
Schwarzenegger Stuns California; Is America Overmedicated?; The War On Drugs: Treament Options; Christine Romans Stock Market Report
Aired August 07, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Tonight: The gubernatorial recall is now a wide-open race in California. Arnold is in. So is Gray Davis' lieutenant. We'll have live reports. And actor/former Senator Fred Thompson joins me to talk about actors and politicians, public service and entertainment.
A nation helped by wonder drugs or a people overmedicated? A special report tonight on rising fears about antidepressants.
Two American soldiers killed in Iraq, the Jordanian Embassy bombed in Baghdad. Barbara Starr reports.
And for our soldiers and Marines wounded in the war against Saddam, the battle doesn't end when they return home, the focus of "Grange On Point."
ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, August 7. Here now, Lou Dobbs.
DOBBS: Good evening.
Tonight: the return of what some health officials are calling a viral hurricane, the West Nile virus. The number of West Nile virus cases has tripled in just the past week in this country. Seven people have now died from the virus this year. The Centers for Disease Control says the number of cases is running ahead of last year's record, when 284 people died, more than 4,100 were infected. The United States last year experienced the largest outbreak of West Nile virus in the world. And this year may be even worse.
Bill Tucker has the report.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): West Nile is back, and moving fast. In mid-July, no mosquitoes captured in New Jersey showed West Nile. One week later, every sample showed the virus. There are now 164 human cases in 16 states, with seven dead from the virus; 22 more states report animal infections. Colorado leads the country with 72 reported cases.
One year ago, there were no cases of West Nile virus. In addition, there are news reports of suspected cases not included in the figures from the CDC, which could expand the number of states.
UNIDENTIFIED FEMALE: There always is a tendency to see more human cases in the areas that have a greater density of population. So that's one of the explanations for that distribution.
TUCKER: The CDC is urging prevention. Personal prevention comes down to using a repellent that contains deet, wearing long-sleeved clothing in the evenings, getting rid of standing water, getting rid of tires in particular, which are fertile breeding grounds for mosquitoes.
UNIDENTIFIED MALE: I think the government is being very proactive, and it's getting the word out.
TUCKER: The CDC emphasizes that control of mosquito population is the most effective way to contain the spread, but implementation of such policy falls to state and local health departments. Larvicide is used to kill the larva before it hatches. Spraying programs, while effective, are controversial, because the most effective chemical is DDT.
DR. HENRY MILLER, HOOVER INSTITUTION: This is a product, like many, that is not entirely without risk, but the risk is primarily to decrease fertility in migrating birds. But you have to balance that with the real threat of morbidity and death to literally millions of persons around the world from mosquito-borne diseases.
(END VIDEOTAPE)
TUCKER: Now, a vaccine is in the works and is promising. It's been proven effective in animals. But the CDC concedes, it will not be ready for this season. And health officials say we're probably about two years away from any commercially available vaccine for humans -- Lou.
DOBBS: Bill, thank you -- Bill Tucker.
Turning now to another trend that is concerning many in this country, the growing use of antidepressant drugs. Those drugs are among the most widely prescribed medications in the country, a $14- billion-a-year industry. Many of the consumers -- and there are millions of them -- are children and adolescents. And that is troubling some health professionals, who worry that, instead of helping depression, some of these drugs may in fact be worsening conditions.
Kitty Pilgrim reports.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Tens of thousands of Americans are depressed and anxious.
(BEGIN VIDEO CLIP, AD)
UNIDENTIFIED ACTRESS: I used to be happy. I remember being happy.
(END VIDEO CLIP) PILGRIM: Doctors wrote more than 100 million prescriptions of antidepressants last year. According to the American Psychiatric Association manual, a person is clinically depressed if they have at least five symptoms most days over a two-week period: sadness, loss of interest or pleasure in activities once enjoyed, change of appetite or weight, difficulty sleeping or oversleeping, physical slowing or agitation, energy loss, feelings of worthlessness or inappropriate guilt, difficulty thinking or concentrating, or recurrent thoughts of death or suicide.
Thoughts of suicide are the primary issue these days, especially when it comes to children. Some studies suggest certain antidepressants may increase thoughts of suicide.
Doctors like Joseph Glenmullen, the author of "Prozac Backlash," question dangerous side-effects, particularly in children. In June, Senator Charles Schumer called on the FDA to push ahead with its own study, saying, "Instead of helping kids overcome their depression, there is more and more evidence that Paxil makes it worse."
UNIDENTIFIED MALE: We really need to be doing more research in this whole area. For a lot of years, we just relied on the adult research, which is wrong, because kids are not just little adults. They need different dosages. They have different kinds of side- effects.
PILGRIM: The FDA Web site says it is currently reviewing reports of an increased risk of suicidal thinking and suicide attempts related to the use of the drug Paxil in children and adolescents under the age of 18 with major depressive disorder, or MDD. "We are recommending that Paxil not be used in the treatment of pediatric MDD."
(END VIDEOTAPE)
PILGRIM: Now, doctors we spoke to also said there's a big concern about children coming off too quickly. And the FDA Web site also warns of severe side effects if a person suddenly stops take the antidepressant and recommends that they do that even under the supervision of a doctor -- Lou.
DOBBS: The serotonin-based drugs, in point of fact, are under review across the board now.
PILGRIM: They certainly are. In fact, there are quite a few questions. Many doctors are questioning their efficacy with the use of children and whether you should even give them to children.
DOBBS: And one of the remarkable aspects of this is the almost similar performance of placebos against these drugs.
PILGRIM: Yes, there is that disturbing study. And so you have to really go through many studies. The British have done quite a few studies on this.
DOBBS: Kitty, thank you very much -- Kitty Pilgrim. Well, turning now to the increasingly interesting world of California politics, Arnold Schwarzenegger made it official today. He is challenging Governor Gray Davis in the recall election. Schwarzenegger enjoyed a bit of a bureaucrat photo opportunity today, as he picked up some campaign paperwork at the Los Angeles County registrar's office.
Arnold then told dozens of supporters how he plans to take on the state's budget crisis.
(BEGIN VIDEO CLIP)
ARNOLD SCHWARZENEGGER (R), CALIFORNIA GUBERNATORIAL CANDIDATE: We have a crisis here in California. We have a $38 billion budget deficit that we have to deal with. And the only way we can deal with those issues is by bringing business back to California, because businesses, when you bring them back to California, it brings the revenue back to California. And when you have more revenue, you then can afford to take care of all those programs that need to be taken care of.
(END VIDEO CLIP)
DOBBS: The former Mr. Universe has already indicated that his acting career will play a big role in his campaign.
Candy Crowley has the report.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): This is going to be so much fun.
(BEGIN VIDEO CLIP, "TERMINATOR 3")
SCHWARZENEGGER: I'll drive.
(END VIDEO CLIP)
CROWLEY: The Terminator to the rescue.
SCHWARZENEGGER: The people of California want to have better leadership. They want to have great leadership.
CROWLEY: A rock 'em, sock 'em tough guy.
(BEGIN VIDEO CLIP, "TERMINATOR 3")
SCHWARZENEGGER: My mission is to protect you.
(END VIDEO CLIP)
CROWLEY: On the side of beleaguered Californians.
SCHWARZENEGGER: All of the politicians are not anymore making the moves for the people, but for special interests. And we have to stop that.
CROWLEY: He's got fame, money, a story to tell. And he talks in bumper stickers.
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW WITH JAY LENO")
SCHWARZENEGGER: I will pump up Sacramento.
(END VIDEO CLIP)
CROWLEY: Arnold Schwarzenegger has just about two months to try out for this role.
(BEGIN VIDEO CLIP, "TRUE LIES")
TOM ARNOLD, ACTOR: Harry? Harry? You do not have time to tango, buddy.
(END VIDEO CLIP)
CROWLEY: Seriously, folks, who's going to vote for a political newbie who opened his latest movie last month and now wants to run a state with a bigger economy than most countries? Acting is one thing. Politics is another. Right?
UNIDENTIFIED MALE: It's a very interesting use of the machinery of celebrity, to launch a political career. I mean, and it's, I think, not coincidental that he chose "The Tonight Show."
CROWLEY: "The Tonight Show" is native habitat for an actor, a place where Schwarzenegger could be seen as he is known, to be importing his base, which is to say, the people who watch his movies.
UNIDENTIFIED MALE: Mostly, probably people who go to action movies, which is to say, young males, males between 16 and 25, let's say.
CROWLEY: They are part of the disenfranchised, nonvoters, cynical about politicians who don't think it matters which one gets elected, the same demographic that formed the core of political revolt which took a wrestler straight from the ring and made him governor of Minnesota. Schwarzenegger embraces his spotlight, understanding well it may be his ticket to the next show.
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW WITH JAY LENO")
SCHWARZENEGGER: Do your job for the people and do it well. Or, otherwise, you're out. Hasta la vista, baby.
(CHEERING AND APPLAUSE)
(END VIDEO CLIP)
CROWLEY: Fade to black.
Candy Crowley, CNN, Washington. (END VIDEOTAPE)
DOBBS: Schwarzenegger told Californians he will not be bought off by special interests because he already has more than enough money to run his campaign. According to published reports, he owns two shopping malls, a Boeing 747, significant real estate holdings in Santa Monica. He also earned $30 million for "Terminator 3." In all, Schwarzenegger has appeared in 40 movies.
Arnold Schwarzenegger is not the only candidate, of course, for California governor to emerge from popular culture. Former television star Gary Coleman and "Hustler" magazine publisher Larry Flynt are also running.
Joining me now for more on California's electoral circus is the host of CNN's "INSIDE POLITICS," Judy Woodruff, joining us tonight from our Los Angeles bureau.
Judy, this couldn't get much more interesting, could it?
JUDY WOODRUFF, HOST, "INSIDE POLITICS": It couldn't, Lou.
DOBBS: And joining us from Miami, Ron Faucheux, the contributor at large of "Campaigns and Elections" magazine.
Ron, I'm sure you've had this all in your forecast for the year.
Judy, let me turn to you first. Your thoughts?
WOODRUFF: Well, you listen to Candy Crowley's piece, and, as you just pointed out, Lou, Arnold Schwarzenegger is running a classic outsider's campaign. He's railing against the special interests. He's railing against the politicians. He says: I'm for the little people. I'm going to reform this state. I'm going to turn Sacramento inside out.
And he's really trying to do a perfect segue from the characters that he plays in some of his movies, minus the violence and the rest of it, into somebody who can come and literally save the state of California. He's taking it one step further, though, which you also pointed out, is, he's got a lot of money. He's probably the only candidate with his own 747. He keeps saying he doesn't have to make a deal with anybody. He doesn't have to ask anybody for money. He's going to pay for his own campaign.
So it is quite a package. And, right now, everybody is riveted.
DOBBS: Ron, what are his chances? Can he make that transition that Judy is referring to, from celebrity actor to politician and governor?
RON FAUCHEUX, "CAMPAIGN AND ELECTIONS": (AUDIO GAP) election. And he's now running as an unconventional Republican.
Over the last 24 hours, he has not positioned himself where most Republicans would position themselves, probably somewhere between George Bush and Pete Wilson. He's positioned himself somewhere between Ross Perot and Jesse Ventura, in terms of running as sort of a centrist populist against the fumbling, fiddling, failing politicians. And that's really where Perot ran when he ran for president of the United States.
DOBBS: Well, let me ask both of you this.
Judy, you've been covering politics for some time. You've been out there in California. You have had a feel for it.
Ron, of course, you are one of the resident gurus on national politics.
Everyone in the media is talking about what a circus this has become, what a frenzy has been created out in California. But help me out here. That state has a $38 billion budget deficit. It has huge economic problems. It has tremendous government problems. Is there an appetite for a real dramatic change that would bring in an outsider, a populist, as you described Schwarzenegger, if indeed that turns out to be what he is?
WOODRUFF: Lou, I think there is that appetite now. And the question is, is Arnold Schwarzenegger capable of running the kind of serious campaign that is going to permit California voters to put their trust in him?
This is a fast campaign. It's only 60 days long. In the world of politics, that's not very long. A lot can happen. But it really does depend on the kind of campaign he runs. A lot also depends on Governor Davis. Right now, he is losing every public opinion poll out here. And if the election were held today, he would be recalled from office. But, in 60 days, can he run a really smart campaign? Can he bail himself out?
I think there's going to be some sober focus across the state of California over the next two months.
DOBBS: Ron?
FAUCHEUX: I agree with Judy.
We're at just the beginning of this campaign, not the end of it. So we have to see what Gray Davis does, in terms of how he governs, how he campaigns, how Schwarzenegger campaigns.
DOBBS: Oh, my goodness.
FAUCHEUX: But we also have to look at whether the Republicans unite around Schwarzenegger.
DOBBS: His own lieutenant governor today joined the race, Ron. This is a remarkable development. Democrats who said that they would stay out of it, watching Arnold Schwarzenegger step in, have now declared open season.
FAUCHEUX: Sure. It is a remarkable situation. And we really don't know where this field is going yet. We don't know whether there will be two or three major Democrats or whether Lieutenant Governor Bustamante will be the only major Democrat. We have yet to really see whether the Republicans are going to unite around Schwarzenegger.
The polls that -- both Democratic and Republican insiders have told me over the last few days indicate that Davis' position has weakened in the last week, not strengthened. And one of the reasons why there was so much movement today is that there's a real fear that Schwarzenegger could win this election.
DOBBS: Well, it was just days ago that nearly every Democratic official that I heard from was saying, there is no way that Gray Davis will have competition from the Democratic Party, that the odds of this recall proceeding were -- it was an opportunity for Davis to reassert himself in the state of California. That's all changed.
What are the implications nationally now, if there are any, as a result of what's going on in California? -- Judy.
WOODRUFF: Well, Lou, right now, Democrats nationally are worried to death, if you will, about what's going on out here.
There's a conference call scheduled tonight by the House minority leader, Nancy Pelosi, who, of course, is a Democratic congresswoman from California. She's going to be on the phone with other members of the state delegation. They are worried, because they don't want to lose this state. This is the most populous state in the country, the most electoral votes. It has been reliably Democratic in the presidential race.
And, in fact, you're showing pictures of the nine Democrats running for the nomination. They came out together just a couple days ago and said they -- uniformly, they oppose this recall. The bottom line, though, is that they don't want California to go Republican. If the governor's mansion falls into Republican hands out here, that is really bad news for the Democrats going into the presidential election next year. It doesn't mean they're necessarily going to lose it, but it makes it harder for them.
And this is a state that they have to have. Any Democrat will tell you they are counting on California if they have any hope of winning the White House.
DOBBS: Ron?
FAUCHEUX: There's no question about it.
The Democrats absolutely have to carry California if they have any chance of electing a president in the next election. And anything like this that muddies the waters, that stirs up the kind of mess they have on their hands is not good news for the Democratic candidates next time.
DOBBS: Ron Faucheux, thank you very much. My colleague Judy Woodruff, thank you very much, as always.
WOODRUFF: Thank, Lou.
DOBBS: You've got an incredible story out there. Thank you.
Still ahead: Former Senator Fred Thompson, he made the move from the world of public service to Hollywood to politics and back again. He'll join us to share his views about Arnold Schwarzenegger's bid for governor and the role of entertainment in public service, politics, and a little acting.
And our series of special reports this week on "The Forgotten War," this nation's war on drugs. Peter Viles reports on the battle of drug treatment.
And a deadly day in Baghdad. Pentagon correspondent Barbara Starr will have the latest for us -- all of that and more still ahead.
Please stay with us.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW WITH JAY LENO")
JAY LENO, HOST: Gray Davis got some good news this week. The Clintons are here in California campaigning for him. Actually, Hillary is campaigning for Davis. I think Bill is campaigning for Larry Flynt, yes.
(LAUGHTER)
(END VIDEO CLIP)
DOBBS: Jay Leno.
Senator Fred Thompson has seen this story from both sides, as a senator from Tennessee and, of course, as an actor. You may remember Senator Thompson as Admiral Joshua Painter of the USS Enterprise in "The Hunt for Red October." He played the officious air traffic controller Trudeau in "Die Hard 2." And these days, he's on television's "Law & Order," district attorney Arthur Branch.
Senator Fred Thompson once said of politics, "After two years in Washington, I often long for the realism and the sincerity of Hollywood." Senator Thompson ended up spending eight years in the Senate representing the state of Tennessee, from which he joins us tonight.
Good to have you with us, Fred.
FRED THOMPSON (R), FORMER U.S. SENATOR: Thank you, Lou. Appreciate it.
DOBBS: It's strange not to be calling you senator, but we will adjust to new circumstances. Are you having fun?
THOMPSON: I'm having a lot of fun. I'm in Tennessee, as you said, and reacquainting myself with some of my family and some of my friends down here.
DOBBS: You are making the -- have made the transition, as always, with great aplomb, back to entertainment. We're now watching Arnold Schwarzenegger. And it seemed to me, in less than 24 hours, he has made his move to that of politician. What's your judgment?
THOMPSON: Going the other way.
Well, it looks to me like things are falling in place for him in a remarkable way. He goes into it, obviously, with the identification and the name I.D. and so forth that's so valuable in politics. He's running in a state that's a mess right now. And he can be the outsider. He even has other credentials, in terms of businessman. That hasn't come out much yet, I suppose. But, apparently, he's done extremely well there.
And the Democratic Party out there seems to be imploding, while the Republicans seem to be coming together behind Arnold. So I've never seen a situation where a person could come in and maybe get 30 percent of the vote and walk off with the governorship.
DOBBS: Now, Fred, even though you are in entertainment and have given up the Senate, you sound like you've still got that Republican Party card maybe in your possession.
(LAUGHTER)
THOMPSON: Just being objective, Lou, just being objective.
(LAUGHTER)
DOBBS: Let me ask you, did Arnold call to you talk about this decision? Because he's watching you, a highly respected U.S. senator, a man with a distinguished career in public service, as well as a terrific career in Hollywood, walking away from it all. Did he call you?
THOMPSON: No, he didn't call me.
But it's not unusual for people who have been successful in one area of their life to have made maybe all the money -- as, apparently, Arnold's got more money than the special interests has -- and to make all the money they'll ever want and be very successful in one or two other endeavors in life, to want to give something back to the society and the state that made it possible for them.
So I don't think -- and perhaps maybe to stay for a while and not stay there the rest of his life. I think the country kind of was based on the idea of successful folks coming in and serving their government for a while and then leaving and not being lifetime professionals in it. So I think he fits in that pattern pretty well.
DOBBS: A pattern that I suspect that a lot of Americans would like to see more politicians adopt as their parameters.
THOMPSON: Well, I've always said, it's no time to get on -- beat the term limits bandwagon again. Not many people are talking about that much anymore. And you would lose some good experience there.
But it's not lack of experience that is troubling us oftentimes nowadays. It's lack of courage and lack of the will to do what people know is the right thing, the tough thing, but the right thing. And you know that there's an end of the tunnel out there for you, you're a little bit more likely to go ahead and do those tough things. And it looks like that's what California needs right now.
DOBBS: What kind of -- I don't know how well, so I'll ask you. How well do you know Arnold Schwarzenegger?
THOMPSON: I don't know him. Never met him.
DOBBS: What's your best sense of the pitfalls that await him as an entertainer, an actor, in public -- in the public arena now?
THOMPSON: Well, there are some.
There's the expectation game. When you come out, you've been very successful. People know you. You'll probably be the front- runner. Any mistake that you make is magnified, becomes an international story. A person who's had adulation and success all their life also has to learn to put up with a lot of things they never have had to put up with, silliness and ill will on the other side. And you've got to learn to keep your temper.
And everybody has pressures and makes mistakes in these campaigns, but you can't let that thing get out of hand. He's really advantaged, also, I think, by the shortness of the campaign. Usually, when you're on the trail for a year or maybe even two years sometimes, you really get worn down to a frazzle. You make those kinds of mistakes then. Your temper gets short and all that. I would guess that the chances of that happening to him are going to be lessened because of the shortness of the campaign.
DOBBS: Let me ask you one last question here, Fred. And that is, very simply, skills as an actor, are they relevant to the skills for, in this case, a governor, a public servant?
THOMPSON: Not really in the way that most people would think.
I think any time that you're used to being before the public or being before a camera, it's helpful to you. But you really don't act in that way and doing your thing. I mean, Ronald Reagan was successful not because he was a great actor, but because he believed in what he was doing. And you really have to have that in order to be successful in politics.
And I think that, from what little I've seen of Arnold so far, I think he seems to genuinely want to make a difference out there. And that'll serve him much better than his acting ability, I think.
(LAUGHTER)
DOBBS: OK, Fred Thompson, your acting ability serves you well, and you served us well in the U.S. Senate. THOMPSON: Thank you.
DOBBS: We appreciate your taking the time. All the very best.
THOMPSON: Thank you very much. Appreciate it.
DOBBS: Tonight's quote from a California state official talking about Arnold Schwarzenegger's decision to run for governor: "I think he has to prove he can actually run the state of California. And, you know, that's different from handling a robot" -- that from San Francisco's Mayor Willie Brown, who, as you might suspect, a Democrat and something of a wit.
That brings us to our poll question tonight: Which of Arnold Schwarzenegger's film titles best describes his run for governor, "Last Action Hero," "The Terminator," "Total Recall," "Kindergarten Cop"? Please vote on our Web site, CNN.com/Lou. We'll have the results for you later in the show.
The final results of last night's poll. The question: Why do you think the media is so focused on the Kobe Bryant case? Two percent of you said national interest, 2 percent a legitimate story; 75 percent of you said the media wants to drive circulation and ratings; 21 percent all of the above. This is an instance in which I can say I agree with about 96 percent of the respondents.
Still ahead here: exporting America. Factory jobs continue to disappear from this country at a staggering rate. Lisa Sylvester will report on an industry that's virtually collapsed.
And then "Grange On Point," the unending war, U.S. troops injured in Iraq and Afghanistan on the long road to recovery. General David Grange joins us.
And "The Forgotten War," the war on drugs. Tonight: rehabilitation -- Peter Viles with that report.
That and a great deal more still ahead. Stay with us.
(COMMERCIAL BREAK)
DOBBS: When we continue: exporting America -- cheap labor from China and other countries throwing thousands of Americans out of work. Lisa Sylvester will have that report next.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Over the past three years, the unemployment rate has risen above 6 percent. And manufacturing workers have taken the biggest hit. Factory jobs continue to be shipped overseas. The manufacturing sector has lost jobs, thousands of jobs, every month for the past three years, many of those jobs going to China, especially in industries such as textiles.
Lisa Sylvester reports from Baltimore, Maryland.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Textile workers at the Maryland clothing manufacturing company have watched as other apparel companies have shut down. Sixty years ago, there were 500 textile factories in the Baltimore area. Now this is the only one.
GUS PICCININI, MARYLAND CLOTHING MANUFACTURING: Hard to call it an industry anymore because it almost doesn't exist. Everything has gone overseas.
SYLVESTER: Some of the workers have had their lives unraveled before, laid off from other textile companies.
RICHARD RINKER, TEXTILE WORKER: It was devastating. I mean, we had people that worked for us for 25, 30 years of service, and everybody thought that they would have a job for life.
SYLVESTER: American manufacturing jobs continue to evaporate.
Last month, 18,000 textile workers lost their jobs, an average of 600 workers a day; 11,000 positions disappeared in computer and electronic manufacturing; and 16,000 jobs vanished in the transportation equipment sector.
One big problem, according to U.S. manufacturers, is a flood of Chinese imports. Trade protections were lifted after China joined the World Trade Organization January of last year. Since then, Chinese exports have climbed 22 percent.
(on camera): American manufacturers say they just can't compete with Chinese imports. Aside from the labor cost, they say that Chinese currency, the wan, is undervalued.
FRANK VARGO, NATIONAL ASSN. OF MANUFACTURERS: It takes fewer dollars to buy a Chinese product. So the Chinese product is a lot cheaper, a lot cheaper than it otherwise would be.
SYLVESTER: (voice-over): Some economists believe that Chinese products will be up to 40 percent more expensive if the currency was allowed to fluctuate with the market instead of being artificially fixed by the Chinese government.
And it's not only the manufacturing sector being hit. High-tech jobs are also leaving.
SEN. CHUCK SCHUMER (D), NEW YORK: Every day every one of us hear from our states of jobs, manufacturing and otherwise, going to China. Some of that is the basis -- you know, is on the basis of free trade. But much of it, a good deal of it, is because the Chinese have unfairly pegged their currency to the dollar at too low a rate.
SYLVESTER: If the textile industry is any indication, more work will be leaving. Except this time around it won't just be blue-collar jobs. Lisa Sylvester, CNN, Baltimore.
(END VIDEOTAPE)
DOBBS: Still ahead, more bloodshed in Baghdad. A deadly attack on the Jordanian embassy. Pentagon correspondent Barbara Starr reports.
And protecting this nation's airliners. Homeland security correspondent, Jeanne Meserve, reports on the latest threat.
And in "Grange on Point" tonight, the unending war for wounded troops returning home from Iraq and Afghanistan and their long road to recovery.
Those stories next.
(COMMERCIAL BREAK)
DOBBS: Thirteen people killed in Baghdad today, two of them Americans. A dramatic increase in violence. Terrorists exploded a car bomb outside the Jordanian embassy. In that explosion, 11 people were killed. Two U.S. soldiers were killed in a firefight in another part of the city.
Pentagon correspondent Barbara Starr joins me now with the story -- Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Lou, that attack on the Jordanian embassy causing a lot of concern, a lot of worry that opposition groups and terrorists in Iraq may now be shifting their tactics to these so-called softer targets, attacking civilians.
The Pentagon today saying no indication of responsibility but saying they are keeping their eye on several radical groups operating in Iraq, that they worry may be shifting these tactics.
And in Iraq, officials saying another indication that guerrilla organizers are getting desperate in the face of U.S. success -- the bounty now for an attack on U.S. forces is as much as $5, 000, up significantly in the last several weeks.
Also in Iraq, confirmation today that U.S. officials believe Saddam is constantly on the move.
(BEGIN VIDEO CLIP)
MAJ. GEN. RAYMOND ODIERNO, U.S. ARMY: I think he's on the run. He's moving every three to four hours. I think he is -- it's impossible for him to command and control what's going on. So what I'm after is the ones commanding and controlling what's going on against our forces and trying to subvert what we're trying to do in building up Iraq. That's really our focus.
(END VIDEO CLIP) STARR: Officials also saying, Lou, that they believe Saddam is changing his appearance, that they have continuing credible reports he has long gray hair and a beard, traveling around in civilian clothes and -- in civilian clothes and civilian vehicles.
And Lou, finally tonight we want to tell you, at Arlington National Cemetery today, Army Specialist Brett Christian, a member of the 101st Airborne Division killed in combat in Iraq July 23, was laid to rest in a light rain at Arlington today. The specialist is the 25th casualty of this war to be laid to rest at Arlington National Cemetery. After the funeral service, his mother, his two brothers, and his grandparents lingered at the grave to say good-bye -- Lou.
DOBBS: And Barbara, today's deaths of the two American soldiers in Baghdad brings the number of killed in Iraq to 251. Barbara Starr, reporting from the Pentagon, thank you.
A court in Indonesia today sentenced a radical Islamist to death for organizing the Bali nightclub bombing. Two hundred people were killed in that explosion. The terrorist known as "The Smiling Bomber" will be executed by firing squad. He was sentenced two days after radical Islamists killed 14 people in a bomb attack against a luxury hotel in Jakarta.
U.S. security experts are checking a dozen foreign airports, trying to determine how to protect airliners from terrorists armed with anti-aircraft missiles. Hundreds of shoulder-launched missiles are believed to now be in terrorists' hands.
Homeland security correspondent, Jeanne Meserve, reports.
(BEGIN VIDEOTAPE)
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): November 2002. Terrorists fire a shoulder-fired missile at an Israeli airliner over Mombasa, Kenya. The missile misses.
But it lets U.S. officials know this threat to commercial aviation is real. After looking at the vulnerability of the largest U.S. airports to the missiles, American teams are now evaluating a dozen airports overseas, where U.S. carriers frequently fly or where the U.S. has strategic interests.
Among the airports being looked at -- Baghdad, Basra, Manila, Athens, and Istanbul. Among the security recommendations -- surveillance, fencing, and increased patrols.
Experts say these perimeter measures are of limited use, given the capability of the missiles.
DAVID OCHMANEK, RAND CORPORATION: These things are effective up to several thousand feet in altitude and you know the angles at which airports approach runways is pretty shallow. So they would be within effective range of these things for several miles before touchdown and for several miles after takeoff. MESERVE: Several miles during which aircraft often pass over densely populated areas in which a shoulder-fired missile could easily be hidden.
In recognition of this, the Department of Homeland Security is asking eight government contractors to develop detailed plans for anti-missile technologies reliable enough, effective enough, and inexpensive enough to put on commercial airliners.
ANDREW KOCH, JANE'S DEFENSE: The question is how much money do you have to spend? Because to defend against all threats all of the time with military type systems is very expensive.
(END VIDEOTAPE)
MESERVE: The administration is also trying to stem the proliferation of shoulder-fired missiles, encouraging other nations to better control their inventories and instituting buyback programs in some high-risk countries.
But there are an estimated 750,000 shoulder-fired missiles already in circulation, and the incident in Mombasa proves some are already in the hands of terrorists -- Lou.
DOBBS: And the Homeland Security Department also putting out alerts this week, concerned about explosives being hidden in devices such as cameras and phones.
Do we have any more on that tonight, Jeanne?
MESERVE: Those alerts remain in effect. They have issued security advisories to the airlines to look out for these items, look at them very carefully as passengers go through screening. All of that still in effect, Lou.
DOBBS: Jeanne, thank you very much. Jeanne Meserve reporting from Washington.
When we continue, "The Forgotten War," the war on drugs. Tonight, treatment as the last line of defense. Peter Viles will have the report. That and a great deal more still ahead. Please stay with us.
(COMMERCIAL BREAK)
DOBBS: This week our series of "Special Reports" on America's war on drugs, what we are referring to as the forgotten war, tonight we focus on rehabilitation, the final line of defense when interdiction and prevention have failed. Only one of every six drug abusers who needs treatment is receiving it. Peter Viles reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: For those of you who just came in, we are talking about the list that we developed two weeks ago on five things that I want to change about myself. UNIDENTIFIED MALE: Good morning, family. My name is Orlando.
CROWD: Hey, Orlando.
UNIDENTIFIED MALE: One of the things that I'd like to change is my level of responsibility because I feel that as an addict I became irresponsible.
UNIDENTIFIED MALE: I really need to work on that pride issue, you know. I need to humble myself. I need to realize that, you know what, it's okay today that I'm an addict because I'm an addict in recovery and I do have another shot at life.
PETER VILES, CNN CORRESPONDENT: Phoenix House, a residential drug treatment center in Brooklyn, where drug addicts come to rebuild broken lives. Dorian Baldwin is a cocaine addict. He's been in the program three months.
DORIAN BALDWIN, COCAINE ADDICT: It works if you want it to. If you come in with an open mind once you sign your name on that piece of paper that states that your life is unmanageable, unbearable, and someone needs to help you with that, then it works.
VILES: For most drug addicts, though, treatment does not work because most addicts don't give it a chance. Dr. Herbert Cleaver estimates he has treated 5,000 addicts.
DR. HERBERT CLEAVER, ADDICT COUNSELOR: What they all want is controlled use. I mean, what the crack addict wants is to be able to take an occasional hit off the crack pipe. What the alcoholic wants is to be able to knock back a couple with the guys on Friday or Saturday night.
VILES: Government statistics bear him out. The government estimates there are 6.1 million Americans who abuse drugs to the point that they need treatment. 1.1 million do get some form of treatment. And what about the rest? The vast majority, 4.7 million, don't get it because they don't think they need it. The so-called denial gap.
UNIDENTIFIED MALE: Anybody else want to chime in on...
VILES: Treatment isn't always successful. The relapse rate is above 50 percent, but when it works, it literally saves lives. Mitch Rosenthal founded Phoenix House in the late '60s.
MITCH ROSENTHAL, FOUNDER PHOENIX HOUSE: As we're sitting here, there are 6,000 men and women and boys and girls in Phoenix Houses in nine states in America. Most of them, a year from now, will have their lives back together and be changed human beings.
VILES: Bill Scott hopes to be one of them. A recovering heroin addict, he's been at Phoenix House for eight months.
BILL SCOTT, RECOVERING HEROIN ADDICT: People should know that it's not hopeless. Take it from somebody that slept on the trains. There's always a light at the end of the tunnel. Sometimes you might not see it, because that tunnel is really long, but if you keep moving forward eventually you'll get there.
(END VIDEOTAPE)
VILES: Treatment is not cheap, and the federal government at $3 billion a year is the biggest payer for it but numerous studies have shown that treatment is a smart investment of federal money. It is a lot cheaper than prison, and in the long run it does save the government money -- Lou.
DOBBS: And it definitely saves lives 20,000 lives a year lost directly to drug. Peter Viles, tough story. Thank you very much. We appreciate it.
Tonight's thought is on the tough decisions and the way we make decisions and shape our lives, "You choose. You live the consequences. Every yes, no, maybe, creates the school you call your personal experience" that from author, American aviator Richard Bach.
When we continue, "Grange On Point" the unending war for Americans wounded in Iraq and Afghanistan, the battle has only just begun when they return home. General David Grange next. Stay with us.
(COMMERCIAL BREAK)
DOBBS: We cover remarkable news stories all of the time. Sometimes remarkable because of the contrast. This week a story dominating about a 24-year-old by the name of Kobe Bryant. Tonight a story about another young man, a 25-year-old named John Fernandez. And the contrast could not be more overwhelming. Maria Hinojosa reports on Lieutenant John Fernandez.
(BEGIN VIDEOTAPE)
MARIA HINOJOSA, CNN CORRESPONDENT: John Fernandez was a national lacrosse star, a West Point graduate, focused, fast, ambitious. And then at 24 he went off to war.
JOHN FERNANDEZ, WOUNDED IN IRAQ: We had received incoming fire and I was just lying there, and my legs were numb, and I said, oh, God. I just remember sitting there for a second, just not knowing what happened. And I felt for my legs and realized that they were there. I pulled my sleeping bag off and looked at my feet. I just, you know, screamed. I realized that my life had changed forever.
HINOJOSA: John was Christie's strongman, happy and optimistic the day he went off to war. He came back determined not to cry for his wounds. Three men had died right next to him.
FERNANDEZ: I couldn't tell that I was bleeding anymore. You know, I knew that I wasn't going to die. And I just tried keeping everyone else up at that point.
KRISTI FERNANDEZ, WIFE OF JOHN FERNANDEZ: Speed bump.
I haven't felt sorry for myself at all. I know that there's three wives that would love to trade places with me. My husband is home. And you know, I didn't care what brought him home. As long as he's here.
HINOJOSA: Married just before the war in a rushed ceremony, they're managing some simple things together for the first time. And some much more complicated ones as well.
UNIDENTIFIED FEMALE: Why don't you try the stepping up and stepping down?
J. FERNANDEZ: The mind works in mysterious ways because my mind, it doesn't know that my foot's not there so it still sends signals down to my foot and it comes back as pain.
UNIDENTIFIED FEMALE: No pressure on here at all. So that's really good.
J. FERNANDEZ I'm barely putting any weight on it now.
HINOJOSA: He's had prosthetics just a week, but already he's making plans.
You're going to be the first double amputee lacrosse player?
J. FERNANDEZ: I don't know, probably. I'm not sure if there has been but I'll definitely be playing again. Hopefully this year. I don't know. We'll see.
(END VIDEOTAPE)
DOBBS: Tonight, Lieutenant Fernandez told us he's still in some pain. You should know he just played in a golf benefit tournament for the son of his high school lacrosse coach, who has Lou Gehrig's disease.
We turn now to General Grange to talk about the way our wounded servicemen and women are being treated when they come home. General Grange, Lieutenant Fernandez one of unfortunately hundreds of remarkable young men and women wounded. What kind of care? What is the quality of care they're receiving?
GENERAL DAVID GRANGE, RET. ARMY GENERAL, MILITARY ANALYST: Well, the care is quite good. The problem is that the medical facilities are stretched a bit. You know, there's still care being provided to veterans that have been wounded in past wars. And now, of course, the surge from Afghanistan and Iraq. And so the care is I think quality care. It's just that it's overburdened a bit right now.
DOBBS: Is there anything that can be done? Because we talk about the 251 Americans who have been killed in Iraq. Hundreds more wounded. The facilities are being stretched some, according to the reports that we're getting. Is there any way in which we can assure the very best care for these young men and women?
GRANGE: Well, a lot of it's psychological support, Lou, and that's the communities taking care of the G.I's when they come home, opportunities for jobs. The transition, obviously, is a tough one and a lot of times they just -- these soldiers, marines, sailors just want to get back to their unit to continue to serve. And that's probably the hardest part for some of them because they're gung ho, they're determined to continue to serve. And so what opportunities are there for them? Whatever can be done to give them that opportunity should be done.
DOBBS: What organizations are helping them, Lieutenant Fernandez, others wounded, awarded the Purple Heart? How important is that to them, and what can be done for them?
GRANGE: Well, of course, the Purple Heart's just a piece of ribbon, but it's the oldest award, it's the oldest symbol of appreciation to the military since established by General George Washington. And it's well respected through the ranks of the military by other service members. To wear a Purple Heart is a very strong sense of service and sacrifice.
There's a lot of organizations that support, like the Military Order of the Purple Heart, which provides assistance, services, and representation in Congress for all wounded G.I's.
DOBBS: General David Grange, thank you very much. And general, we're going to promise to follow the young men and women like Lieutenant Fernandez with equal exuberance that we bring to a story like, say, Kobe Bryant. Thanks a lot.
When we continue -- the results of our poll tonight. We'll look at some of your thoughts. Stay with us.
(COMMERCIAL BREAK)
DOBBS: The preliminary results of the poll question. Which of Arnold Schwarzenegger's film titles best describes his run for governor? Almost two thirds of you said "Kindergarten Cop."
Turning now to the markets, the Dow Jones Industrials managed to gain 64 points. The Nasdaq losing a fraction. Christine Romans puts it all together for us.
CHRISTINE ROMANS, CNN FINANCIAL CORRESPONDENT: There was some strong economic data today and good news from the retailers, Lou, and that helped the blue chips, but for the Nasdaq it was the fifth day lower in a row. So we're watching that losing streak. But take a look at this.
First the economic news. Jobless claims remaining below 400,000 for a third week in a row. Worker productivity soared in the second quarter. Meanwhile, bond yields fell today after a government note auction found solid demand. And that helped stocks.
The retail stocks rallied. Best Buy and Wal-Mart raised profit targets after decent July sales. So did Gap and Ann Taylor, among many others. And energy stocks were strong as natural gas futures rose 7 percent and oil rose 2 percent. A report showed natural gas inventories last week rose less than 5. But computer networking stocks fell, Lou. These are the stocks that are among the best performers of the year. So some folks are saying that it's natural to see those come off more than the rest of the market.
DOBBS: A lot happening.
ROMANS: A lot really happening.
DOBBS: Those energy prices have got to be of some concern.
ROMANS: Yes, we'll watch those and see if that follows through or if it's just a one-day kind of move.
DOBBS: Thank you very much, Christine Romans.
ROMANS: You're welcome.
DOBBS: Now something we want to do as we do each evening, we want to look at some of your thoughts. Many of you wrote in about the Kobe Bryant case.
James Bogle of High Springs, Florida said, "The media circus around Kobe Bryant is nothing more than tabloid journalism in its raw naked ugliness."
Ben Franklin, Le Grange, Texas saying, "What seems to be the most compelling issue is that bad news makes a lot of money, a lot of talk, and in the end, Kobe Bryant and that young girl's reputation is just so much grist and fodder for the media. You're right Lou, it says a lot about us as a people."
Roger Van Horsen of Chapin, South Carolina, "Thank God we no longer have to worry about Osama, Saddam, or Liberia and can now focus on what's really important, a very tall guy in a court room."
And on our series of Special Reports on the forgotten war, W.T. Barron of Wisconsin said, "On one hand we tell people "Do not do drugs" yet 10 percent or more of the commercials on TV are on pharmaceutical company or another encouraging you to ask your doctor for a chemical by name."
And Julian of Moorhead, Minnisota said "I think we should legalize marijuana like we did with alcohol in the 1930's and "Sin Tax" it.
Frank Kelly of Victorville, California, offered a somewhat different solution, "More money needs to be sent on prevention programs, especially with younger aged children. More money for prevention will definitely lower drug and alcohol abuse.
We appreciate hearing from you. Send us your thoughts at loudobbs@CNN.com.
Finally tonight, something you've never seen before. A cannibal in space. Thanks to new pictures from the Hubble space telescope and its newly installed camera we're actually able to see one galaxy actually devouring another. The smaller galaxy, it's known as tadpole, is being ripped apart by the gravitational pull of the larger galaxy. This enhanced photo shows the stars being pulled away. This sort of cannibalism is an activity that scientists have long imagined and conjectured and in fact predicted but had never seen before.
That's our show for tonight. Thanks for being with us. For all of us here, good night from New York. "LIVE FROM THE HEADLINES" with Anderson Cooper coming up next.
END
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Overmedicated?; The War On Drugs: Treament Options; Christine Romans Stock Market Report>
Aired August 7, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Tonight: The gubernatorial recall is now a wide-open race in California. Arnold is in. So is Gray Davis' lieutenant. We'll have live reports. And actor/former Senator Fred Thompson joins me to talk about actors and politicians, public service and entertainment.
A nation helped by wonder drugs or a people overmedicated? A special report tonight on rising fears about antidepressants.
Two American soldiers killed in Iraq, the Jordanian Embassy bombed in Baghdad. Barbara Starr reports.
And for our soldiers and Marines wounded in the war against Saddam, the battle doesn't end when they return home, the focus of "Grange On Point."
ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, August 7. Here now, Lou Dobbs.
DOBBS: Good evening.
Tonight: the return of what some health officials are calling a viral hurricane, the West Nile virus. The number of West Nile virus cases has tripled in just the past week in this country. Seven people have now died from the virus this year. The Centers for Disease Control says the number of cases is running ahead of last year's record, when 284 people died, more than 4,100 were infected. The United States last year experienced the largest outbreak of West Nile virus in the world. And this year may be even worse.
Bill Tucker has the report.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): West Nile is back, and moving fast. In mid-July, no mosquitoes captured in New Jersey showed West Nile. One week later, every sample showed the virus. There are now 164 human cases in 16 states, with seven dead from the virus; 22 more states report animal infections. Colorado leads the country with 72 reported cases.
One year ago, there were no cases of West Nile virus. In addition, there are news reports of suspected cases not included in the figures from the CDC, which could expand the number of states.
UNIDENTIFIED FEMALE: There always is a tendency to see more human cases in the areas that have a greater density of population. So that's one of the explanations for that distribution.
TUCKER: The CDC is urging prevention. Personal prevention comes down to using a repellent that contains deet, wearing long-sleeved clothing in the evenings, getting rid of standing water, getting rid of tires in particular, which are fertile breeding grounds for mosquitoes.
UNIDENTIFIED MALE: I think the government is being very proactive, and it's getting the word out.
TUCKER: The CDC emphasizes that control of mosquito population is the most effective way to contain the spread, but implementation of such policy falls to state and local health departments. Larvicide is used to kill the larva before it hatches. Spraying programs, while effective, are controversial, because the most effective chemical is DDT.
DR. HENRY MILLER, HOOVER INSTITUTION: This is a product, like many, that is not entirely without risk, but the risk is primarily to decrease fertility in migrating birds. But you have to balance that with the real threat of morbidity and death to literally millions of persons around the world from mosquito-borne diseases.
(END VIDEOTAPE)
TUCKER: Now, a vaccine is in the works and is promising. It's been proven effective in animals. But the CDC concedes, it will not be ready for this season. And health officials say we're probably about two years away from any commercially available vaccine for humans -- Lou.
DOBBS: Bill, thank you -- Bill Tucker.
Turning now to another trend that is concerning many in this country, the growing use of antidepressant drugs. Those drugs are among the most widely prescribed medications in the country, a $14- billion-a-year industry. Many of the consumers -- and there are millions of them -- are children and adolescents. And that is troubling some health professionals, who worry that, instead of helping depression, some of these drugs may in fact be worsening conditions.
Kitty Pilgrim reports.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Tens of thousands of Americans are depressed and anxious.
(BEGIN VIDEO CLIP, AD)
UNIDENTIFIED ACTRESS: I used to be happy. I remember being happy.
(END VIDEO CLIP) PILGRIM: Doctors wrote more than 100 million prescriptions of antidepressants last year. According to the American Psychiatric Association manual, a person is clinically depressed if they have at least five symptoms most days over a two-week period: sadness, loss of interest or pleasure in activities once enjoyed, change of appetite or weight, difficulty sleeping or oversleeping, physical slowing or agitation, energy loss, feelings of worthlessness or inappropriate guilt, difficulty thinking or concentrating, or recurrent thoughts of death or suicide.
Thoughts of suicide are the primary issue these days, especially when it comes to children. Some studies suggest certain antidepressants may increase thoughts of suicide.
Doctors like Joseph Glenmullen, the author of "Prozac Backlash," question dangerous side-effects, particularly in children. In June, Senator Charles Schumer called on the FDA to push ahead with its own study, saying, "Instead of helping kids overcome their depression, there is more and more evidence that Paxil makes it worse."
UNIDENTIFIED MALE: We really need to be doing more research in this whole area. For a lot of years, we just relied on the adult research, which is wrong, because kids are not just little adults. They need different dosages. They have different kinds of side- effects.
PILGRIM: The FDA Web site says it is currently reviewing reports of an increased risk of suicidal thinking and suicide attempts related to the use of the drug Paxil in children and adolescents under the age of 18 with major depressive disorder, or MDD. "We are recommending that Paxil not be used in the treatment of pediatric MDD."
(END VIDEOTAPE)
PILGRIM: Now, doctors we spoke to also said there's a big concern about children coming off too quickly. And the FDA Web site also warns of severe side effects if a person suddenly stops take the antidepressant and recommends that they do that even under the supervision of a doctor -- Lou.
DOBBS: The serotonin-based drugs, in point of fact, are under review across the board now.
PILGRIM: They certainly are. In fact, there are quite a few questions. Many doctors are questioning their efficacy with the use of children and whether you should even give them to children.
DOBBS: And one of the remarkable aspects of this is the almost similar performance of placebos against these drugs.
PILGRIM: Yes, there is that disturbing study. And so you have to really go through many studies. The British have done quite a few studies on this.
DOBBS: Kitty, thank you very much -- Kitty Pilgrim. Well, turning now to the increasingly interesting world of California politics, Arnold Schwarzenegger made it official today. He is challenging Governor Gray Davis in the recall election. Schwarzenegger enjoyed a bit of a bureaucrat photo opportunity today, as he picked up some campaign paperwork at the Los Angeles County registrar's office.
Arnold then told dozens of supporters how he plans to take on the state's budget crisis.
(BEGIN VIDEO CLIP)
ARNOLD SCHWARZENEGGER (R), CALIFORNIA GUBERNATORIAL CANDIDATE: We have a crisis here in California. We have a $38 billion budget deficit that we have to deal with. And the only way we can deal with those issues is by bringing business back to California, because businesses, when you bring them back to California, it brings the revenue back to California. And when you have more revenue, you then can afford to take care of all those programs that need to be taken care of.
(END VIDEO CLIP)
DOBBS: The former Mr. Universe has already indicated that his acting career will play a big role in his campaign.
Candy Crowley has the report.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice-over): This is going to be so much fun.
(BEGIN VIDEO CLIP, "TERMINATOR 3")
SCHWARZENEGGER: I'll drive.
(END VIDEO CLIP)
CROWLEY: The Terminator to the rescue.
SCHWARZENEGGER: The people of California want to have better leadership. They want to have great leadership.
CROWLEY: A rock 'em, sock 'em tough guy.
(BEGIN VIDEO CLIP, "TERMINATOR 3")
SCHWARZENEGGER: My mission is to protect you.
(END VIDEO CLIP)
CROWLEY: On the side of beleaguered Californians.
SCHWARZENEGGER: All of the politicians are not anymore making the moves for the people, but for special interests. And we have to stop that.
CROWLEY: He's got fame, money, a story to tell. And he talks in bumper stickers.
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW WITH JAY LENO")
SCHWARZENEGGER: I will pump up Sacramento.
(END VIDEO CLIP)
CROWLEY: Arnold Schwarzenegger has just about two months to try out for this role.
(BEGIN VIDEO CLIP, "TRUE LIES")
TOM ARNOLD, ACTOR: Harry? Harry? You do not have time to tango, buddy.
(END VIDEO CLIP)
CROWLEY: Seriously, folks, who's going to vote for a political newbie who opened his latest movie last month and now wants to run a state with a bigger economy than most countries? Acting is one thing. Politics is another. Right?
UNIDENTIFIED MALE: It's a very interesting use of the machinery of celebrity, to launch a political career. I mean, and it's, I think, not coincidental that he chose "The Tonight Show."
CROWLEY: "The Tonight Show" is native habitat for an actor, a place where Schwarzenegger could be seen as he is known, to be importing his base, which is to say, the people who watch his movies.
UNIDENTIFIED MALE: Mostly, probably people who go to action movies, which is to say, young males, males between 16 and 25, let's say.
CROWLEY: They are part of the disenfranchised, nonvoters, cynical about politicians who don't think it matters which one gets elected, the same demographic that formed the core of political revolt which took a wrestler straight from the ring and made him governor of Minnesota. Schwarzenegger embraces his spotlight, understanding well it may be his ticket to the next show.
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW WITH JAY LENO")
SCHWARZENEGGER: Do your job for the people and do it well. Or, otherwise, you're out. Hasta la vista, baby.
(CHEERING AND APPLAUSE)
(END VIDEO CLIP)
CROWLEY: Fade to black.
Candy Crowley, CNN, Washington. (END VIDEOTAPE)
DOBBS: Schwarzenegger told Californians he will not be bought off by special interests because he already has more than enough money to run his campaign. According to published reports, he owns two shopping malls, a Boeing 747, significant real estate holdings in Santa Monica. He also earned $30 million for "Terminator 3." In all, Schwarzenegger has appeared in 40 movies.
Arnold Schwarzenegger is not the only candidate, of course, for California governor to emerge from popular culture. Former television star Gary Coleman and "Hustler" magazine publisher Larry Flynt are also running.
Joining me now for more on California's electoral circus is the host of CNN's "INSIDE POLITICS," Judy Woodruff, joining us tonight from our Los Angeles bureau.
Judy, this couldn't get much more interesting, could it?
JUDY WOODRUFF, HOST, "INSIDE POLITICS": It couldn't, Lou.
DOBBS: And joining us from Miami, Ron Faucheux, the contributor at large of "Campaigns and Elections" magazine.
Ron, I'm sure you've had this all in your forecast for the year.
Judy, let me turn to you first. Your thoughts?
WOODRUFF: Well, you listen to Candy Crowley's piece, and, as you just pointed out, Lou, Arnold Schwarzenegger is running a classic outsider's campaign. He's railing against the special interests. He's railing against the politicians. He says: I'm for the little people. I'm going to reform this state. I'm going to turn Sacramento inside out.
And he's really trying to do a perfect segue from the characters that he plays in some of his movies, minus the violence and the rest of it, into somebody who can come and literally save the state of California. He's taking it one step further, though, which you also pointed out, is, he's got a lot of money. He's probably the only candidate with his own 747. He keeps saying he doesn't have to make a deal with anybody. He doesn't have to ask anybody for money. He's going to pay for his own campaign.
So it is quite a package. And, right now, everybody is riveted.
DOBBS: Ron, what are his chances? Can he make that transition that Judy is referring to, from celebrity actor to politician and governor?
RON FAUCHEUX, "CAMPAIGN AND ELECTIONS": (AUDIO GAP) election. And he's now running as an unconventional Republican.
Over the last 24 hours, he has not positioned himself where most Republicans would position themselves, probably somewhere between George Bush and Pete Wilson. He's positioned himself somewhere between Ross Perot and Jesse Ventura, in terms of running as sort of a centrist populist against the fumbling, fiddling, failing politicians. And that's really where Perot ran when he ran for president of the United States.
DOBBS: Well, let me ask both of you this.
Judy, you've been covering politics for some time. You've been out there in California. You have had a feel for it.
Ron, of course, you are one of the resident gurus on national politics.
Everyone in the media is talking about what a circus this has become, what a frenzy has been created out in California. But help me out here. That state has a $38 billion budget deficit. It has huge economic problems. It has tremendous government problems. Is there an appetite for a real dramatic change that would bring in an outsider, a populist, as you described Schwarzenegger, if indeed that turns out to be what he is?
WOODRUFF: Lou, I think there is that appetite now. And the question is, is Arnold Schwarzenegger capable of running the kind of serious campaign that is going to permit California voters to put their trust in him?
This is a fast campaign. It's only 60 days long. In the world of politics, that's not very long. A lot can happen. But it really does depend on the kind of campaign he runs. A lot also depends on Governor Davis. Right now, he is losing every public opinion poll out here. And if the election were held today, he would be recalled from office. But, in 60 days, can he run a really smart campaign? Can he bail himself out?
I think there's going to be some sober focus across the state of California over the next two months.
DOBBS: Ron?
FAUCHEUX: I agree with Judy.
We're at just the beginning of this campaign, not the end of it. So we have to see what Gray Davis does, in terms of how he governs, how he campaigns, how Schwarzenegger campaigns.
DOBBS: Oh, my goodness.
FAUCHEUX: But we also have to look at whether the Republicans unite around Schwarzenegger.
DOBBS: His own lieutenant governor today joined the race, Ron. This is a remarkable development. Democrats who said that they would stay out of it, watching Arnold Schwarzenegger step in, have now declared open season.
FAUCHEUX: Sure. It is a remarkable situation. And we really don't know where this field is going yet. We don't know whether there will be two or three major Democrats or whether Lieutenant Governor Bustamante will be the only major Democrat. We have yet to really see whether the Republicans are going to unite around Schwarzenegger.
The polls that -- both Democratic and Republican insiders have told me over the last few days indicate that Davis' position has weakened in the last week, not strengthened. And one of the reasons why there was so much movement today is that there's a real fear that Schwarzenegger could win this election.
DOBBS: Well, it was just days ago that nearly every Democratic official that I heard from was saying, there is no way that Gray Davis will have competition from the Democratic Party, that the odds of this recall proceeding were -- it was an opportunity for Davis to reassert himself in the state of California. That's all changed.
What are the implications nationally now, if there are any, as a result of what's going on in California? -- Judy.
WOODRUFF: Well, Lou, right now, Democrats nationally are worried to death, if you will, about what's going on out here.
There's a conference call scheduled tonight by the House minority leader, Nancy Pelosi, who, of course, is a Democratic congresswoman from California. She's going to be on the phone with other members of the state delegation. They are worried, because they don't want to lose this state. This is the most populous state in the country, the most electoral votes. It has been reliably Democratic in the presidential race.
And, in fact, you're showing pictures of the nine Democrats running for the nomination. They came out together just a couple days ago and said they -- uniformly, they oppose this recall. The bottom line, though, is that they don't want California to go Republican. If the governor's mansion falls into Republican hands out here, that is really bad news for the Democrats going into the presidential election next year. It doesn't mean they're necessarily going to lose it, but it makes it harder for them.
And this is a state that they have to have. Any Democrat will tell you they are counting on California if they have any hope of winning the White House.
DOBBS: Ron?
FAUCHEUX: There's no question about it.
The Democrats absolutely have to carry California if they have any chance of electing a president in the next election. And anything like this that muddies the waters, that stirs up the kind of mess they have on their hands is not good news for the Democratic candidates next time.
DOBBS: Ron Faucheux, thank you very much. My colleague Judy Woodruff, thank you very much, as always.
WOODRUFF: Thank, Lou.
DOBBS: You've got an incredible story out there. Thank you.
Still ahead: Former Senator Fred Thompson, he made the move from the world of public service to Hollywood to politics and back again. He'll join us to share his views about Arnold Schwarzenegger's bid for governor and the role of entertainment in public service, politics, and a little acting.
And our series of special reports this week on "The Forgotten War," this nation's war on drugs. Peter Viles reports on the battle of drug treatment.
And a deadly day in Baghdad. Pentagon correspondent Barbara Starr will have the latest for us -- all of that and more still ahead.
Please stay with us.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW WITH JAY LENO")
JAY LENO, HOST: Gray Davis got some good news this week. The Clintons are here in California campaigning for him. Actually, Hillary is campaigning for Davis. I think Bill is campaigning for Larry Flynt, yes.
(LAUGHTER)
(END VIDEO CLIP)
DOBBS: Jay Leno.
Senator Fred Thompson has seen this story from both sides, as a senator from Tennessee and, of course, as an actor. You may remember Senator Thompson as Admiral Joshua Painter of the USS Enterprise in "The Hunt for Red October." He played the officious air traffic controller Trudeau in "Die Hard 2." And these days, he's on television's "Law & Order," district attorney Arthur Branch.
Senator Fred Thompson once said of politics, "After two years in Washington, I often long for the realism and the sincerity of Hollywood." Senator Thompson ended up spending eight years in the Senate representing the state of Tennessee, from which he joins us tonight.
Good to have you with us, Fred.
FRED THOMPSON (R), FORMER U.S. SENATOR: Thank you, Lou. Appreciate it.
DOBBS: It's strange not to be calling you senator, but we will adjust to new circumstances. Are you having fun?
THOMPSON: I'm having a lot of fun. I'm in Tennessee, as you said, and reacquainting myself with some of my family and some of my friends down here.
DOBBS: You are making the -- have made the transition, as always, with great aplomb, back to entertainment. We're now watching Arnold Schwarzenegger. And it seemed to me, in less than 24 hours, he has made his move to that of politician. What's your judgment?
THOMPSON: Going the other way.
Well, it looks to me like things are falling in place for him in a remarkable way. He goes into it, obviously, with the identification and the name I.D. and so forth that's so valuable in politics. He's running in a state that's a mess right now. And he can be the outsider. He even has other credentials, in terms of businessman. That hasn't come out much yet, I suppose. But, apparently, he's done extremely well there.
And the Democratic Party out there seems to be imploding, while the Republicans seem to be coming together behind Arnold. So I've never seen a situation where a person could come in and maybe get 30 percent of the vote and walk off with the governorship.
DOBBS: Now, Fred, even though you are in entertainment and have given up the Senate, you sound like you've still got that Republican Party card maybe in your possession.
(LAUGHTER)
THOMPSON: Just being objective, Lou, just being objective.
(LAUGHTER)
DOBBS: Let me ask you, did Arnold call to you talk about this decision? Because he's watching you, a highly respected U.S. senator, a man with a distinguished career in public service, as well as a terrific career in Hollywood, walking away from it all. Did he call you?
THOMPSON: No, he didn't call me.
But it's not unusual for people who have been successful in one area of their life to have made maybe all the money -- as, apparently, Arnold's got more money than the special interests has -- and to make all the money they'll ever want and be very successful in one or two other endeavors in life, to want to give something back to the society and the state that made it possible for them.
So I don't think -- and perhaps maybe to stay for a while and not stay there the rest of his life. I think the country kind of was based on the idea of successful folks coming in and serving their government for a while and then leaving and not being lifetime professionals in it. So I think he fits in that pattern pretty well.
DOBBS: A pattern that I suspect that a lot of Americans would like to see more politicians adopt as their parameters.
THOMPSON: Well, I've always said, it's no time to get on -- beat the term limits bandwagon again. Not many people are talking about that much anymore. And you would lose some good experience there.
But it's not lack of experience that is troubling us oftentimes nowadays. It's lack of courage and lack of the will to do what people know is the right thing, the tough thing, but the right thing. And you know that there's an end of the tunnel out there for you, you're a little bit more likely to go ahead and do those tough things. And it looks like that's what California needs right now.
DOBBS: What kind of -- I don't know how well, so I'll ask you. How well do you know Arnold Schwarzenegger?
THOMPSON: I don't know him. Never met him.
DOBBS: What's your best sense of the pitfalls that await him as an entertainer, an actor, in public -- in the public arena now?
THOMPSON: Well, there are some.
There's the expectation game. When you come out, you've been very successful. People know you. You'll probably be the front- runner. Any mistake that you make is magnified, becomes an international story. A person who's had adulation and success all their life also has to learn to put up with a lot of things they never have had to put up with, silliness and ill will on the other side. And you've got to learn to keep your temper.
And everybody has pressures and makes mistakes in these campaigns, but you can't let that thing get out of hand. He's really advantaged, also, I think, by the shortness of the campaign. Usually, when you're on the trail for a year or maybe even two years sometimes, you really get worn down to a frazzle. You make those kinds of mistakes then. Your temper gets short and all that. I would guess that the chances of that happening to him are going to be lessened because of the shortness of the campaign.
DOBBS: Let me ask you one last question here, Fred. And that is, very simply, skills as an actor, are they relevant to the skills for, in this case, a governor, a public servant?
THOMPSON: Not really in the way that most people would think.
I think any time that you're used to being before the public or being before a camera, it's helpful to you. But you really don't act in that way and doing your thing. I mean, Ronald Reagan was successful not because he was a great actor, but because he believed in what he was doing. And you really have to have that in order to be successful in politics.
And I think that, from what little I've seen of Arnold so far, I think he seems to genuinely want to make a difference out there. And that'll serve him much better than his acting ability, I think.
(LAUGHTER)
DOBBS: OK, Fred Thompson, your acting ability serves you well, and you served us well in the U.S. Senate. THOMPSON: Thank you.
DOBBS: We appreciate your taking the time. All the very best.
THOMPSON: Thank you very much. Appreciate it.
DOBBS: Tonight's quote from a California state official talking about Arnold Schwarzenegger's decision to run for governor: "I think he has to prove he can actually run the state of California. And, you know, that's different from handling a robot" -- that from San Francisco's Mayor Willie Brown, who, as you might suspect, a Democrat and something of a wit.
That brings us to our poll question tonight: Which of Arnold Schwarzenegger's film titles best describes his run for governor, "Last Action Hero," "The Terminator," "Total Recall," "Kindergarten Cop"? Please vote on our Web site, CNN.com/Lou. We'll have the results for you later in the show.
The final results of last night's poll. The question: Why do you think the media is so focused on the Kobe Bryant case? Two percent of you said national interest, 2 percent a legitimate story; 75 percent of you said the media wants to drive circulation and ratings; 21 percent all of the above. This is an instance in which I can say I agree with about 96 percent of the respondents.
Still ahead here: exporting America. Factory jobs continue to disappear from this country at a staggering rate. Lisa Sylvester will report on an industry that's virtually collapsed.
And then "Grange On Point," the unending war, U.S. troops injured in Iraq and Afghanistan on the long road to recovery. General David Grange joins us.
And "The Forgotten War," the war on drugs. Tonight: rehabilitation -- Peter Viles with that report.
That and a great deal more still ahead. Stay with us.
(COMMERCIAL BREAK)
DOBBS: When we continue: exporting America -- cheap labor from China and other countries throwing thousands of Americans out of work. Lisa Sylvester will have that report next.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Over the past three years, the unemployment rate has risen above 6 percent. And manufacturing workers have taken the biggest hit. Factory jobs continue to be shipped overseas. The manufacturing sector has lost jobs, thousands of jobs, every month for the past three years, many of those jobs going to China, especially in industries such as textiles.
Lisa Sylvester reports from Baltimore, Maryland.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Textile workers at the Maryland clothing manufacturing company have watched as other apparel companies have shut down. Sixty years ago, there were 500 textile factories in the Baltimore area. Now this is the only one.
GUS PICCININI, MARYLAND CLOTHING MANUFACTURING: Hard to call it an industry anymore because it almost doesn't exist. Everything has gone overseas.
SYLVESTER: Some of the workers have had their lives unraveled before, laid off from other textile companies.
RICHARD RINKER, TEXTILE WORKER: It was devastating. I mean, we had people that worked for us for 25, 30 years of service, and everybody thought that they would have a job for life.
SYLVESTER: American manufacturing jobs continue to evaporate.
Last month, 18,000 textile workers lost their jobs, an average of 600 workers a day; 11,000 positions disappeared in computer and electronic manufacturing; and 16,000 jobs vanished in the transportation equipment sector.
One big problem, according to U.S. manufacturers, is a flood of Chinese imports. Trade protections were lifted after China joined the World Trade Organization January of last year. Since then, Chinese exports have climbed 22 percent.
(on camera): American manufacturers say they just can't compete with Chinese imports. Aside from the labor cost, they say that Chinese currency, the wan, is undervalued.
FRANK VARGO, NATIONAL ASSN. OF MANUFACTURERS: It takes fewer dollars to buy a Chinese product. So the Chinese product is a lot cheaper, a lot cheaper than it otherwise would be.
SYLVESTER: (voice-over): Some economists believe that Chinese products will be up to 40 percent more expensive if the currency was allowed to fluctuate with the market instead of being artificially fixed by the Chinese government.
And it's not only the manufacturing sector being hit. High-tech jobs are also leaving.
SEN. CHUCK SCHUMER (D), NEW YORK: Every day every one of us hear from our states of jobs, manufacturing and otherwise, going to China. Some of that is the basis -- you know, is on the basis of free trade. But much of it, a good deal of it, is because the Chinese have unfairly pegged their currency to the dollar at too low a rate.
SYLVESTER: If the textile industry is any indication, more work will be leaving. Except this time around it won't just be blue-collar jobs. Lisa Sylvester, CNN, Baltimore.
(END VIDEOTAPE)
DOBBS: Still ahead, more bloodshed in Baghdad. A deadly attack on the Jordanian embassy. Pentagon correspondent Barbara Starr reports.
And protecting this nation's airliners. Homeland security correspondent, Jeanne Meserve, reports on the latest threat.
And in "Grange on Point" tonight, the unending war for wounded troops returning home from Iraq and Afghanistan and their long road to recovery.
Those stories next.
(COMMERCIAL BREAK)
DOBBS: Thirteen people killed in Baghdad today, two of them Americans. A dramatic increase in violence. Terrorists exploded a car bomb outside the Jordanian embassy. In that explosion, 11 people were killed. Two U.S. soldiers were killed in a firefight in another part of the city.
Pentagon correspondent Barbara Starr joins me now with the story -- Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Lou, that attack on the Jordanian embassy causing a lot of concern, a lot of worry that opposition groups and terrorists in Iraq may now be shifting their tactics to these so-called softer targets, attacking civilians.
The Pentagon today saying no indication of responsibility but saying they are keeping their eye on several radical groups operating in Iraq, that they worry may be shifting these tactics.
And in Iraq, officials saying another indication that guerrilla organizers are getting desperate in the face of U.S. success -- the bounty now for an attack on U.S. forces is as much as $5, 000, up significantly in the last several weeks.
Also in Iraq, confirmation today that U.S. officials believe Saddam is constantly on the move.
(BEGIN VIDEO CLIP)
MAJ. GEN. RAYMOND ODIERNO, U.S. ARMY: I think he's on the run. He's moving every three to four hours. I think he is -- it's impossible for him to command and control what's going on. So what I'm after is the ones commanding and controlling what's going on against our forces and trying to subvert what we're trying to do in building up Iraq. That's really our focus.
(END VIDEO CLIP) STARR: Officials also saying, Lou, that they believe Saddam is changing his appearance, that they have continuing credible reports he has long gray hair and a beard, traveling around in civilian clothes and -- in civilian clothes and civilian vehicles.
And Lou, finally tonight we want to tell you, at Arlington National Cemetery today, Army Specialist Brett Christian, a member of the 101st Airborne Division killed in combat in Iraq July 23, was laid to rest in a light rain at Arlington today. The specialist is the 25th casualty of this war to be laid to rest at Arlington National Cemetery. After the funeral service, his mother, his two brothers, and his grandparents lingered at the grave to say good-bye -- Lou.
DOBBS: And Barbara, today's deaths of the two American soldiers in Baghdad brings the number of killed in Iraq to 251. Barbara Starr, reporting from the Pentagon, thank you.
A court in Indonesia today sentenced a radical Islamist to death for organizing the Bali nightclub bombing. Two hundred people were killed in that explosion. The terrorist known as "The Smiling Bomber" will be executed by firing squad. He was sentenced two days after radical Islamists killed 14 people in a bomb attack against a luxury hotel in Jakarta.
U.S. security experts are checking a dozen foreign airports, trying to determine how to protect airliners from terrorists armed with anti-aircraft missiles. Hundreds of shoulder-launched missiles are believed to now be in terrorists' hands.
Homeland security correspondent, Jeanne Meserve, reports.
(BEGIN VIDEOTAPE)
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): November 2002. Terrorists fire a shoulder-fired missile at an Israeli airliner over Mombasa, Kenya. The missile misses.
But it lets U.S. officials know this threat to commercial aviation is real. After looking at the vulnerability of the largest U.S. airports to the missiles, American teams are now evaluating a dozen airports overseas, where U.S. carriers frequently fly or where the U.S. has strategic interests.
Among the airports being looked at -- Baghdad, Basra, Manila, Athens, and Istanbul. Among the security recommendations -- surveillance, fencing, and increased patrols.
Experts say these perimeter measures are of limited use, given the capability of the missiles.
DAVID OCHMANEK, RAND CORPORATION: These things are effective up to several thousand feet in altitude and you know the angles at which airports approach runways is pretty shallow. So they would be within effective range of these things for several miles before touchdown and for several miles after takeoff. MESERVE: Several miles during which aircraft often pass over densely populated areas in which a shoulder-fired missile could easily be hidden.
In recognition of this, the Department of Homeland Security is asking eight government contractors to develop detailed plans for anti-missile technologies reliable enough, effective enough, and inexpensive enough to put on commercial airliners.
ANDREW KOCH, JANE'S DEFENSE: The question is how much money do you have to spend? Because to defend against all threats all of the time with military type systems is very expensive.
(END VIDEOTAPE)
MESERVE: The administration is also trying to stem the proliferation of shoulder-fired missiles, encouraging other nations to better control their inventories and instituting buyback programs in some high-risk countries.
But there are an estimated 750,000 shoulder-fired missiles already in circulation, and the incident in Mombasa proves some are already in the hands of terrorists -- Lou.
DOBBS: And the Homeland Security Department also putting out alerts this week, concerned about explosives being hidden in devices such as cameras and phones.
Do we have any more on that tonight, Jeanne?
MESERVE: Those alerts remain in effect. They have issued security advisories to the airlines to look out for these items, look at them very carefully as passengers go through screening. All of that still in effect, Lou.
DOBBS: Jeanne, thank you very much. Jeanne Meserve reporting from Washington.
When we continue, "The Forgotten War," the war on drugs. Tonight, treatment as the last line of defense. Peter Viles will have the report. That and a great deal more still ahead. Please stay with us.
(COMMERCIAL BREAK)
DOBBS: This week our series of "Special Reports" on America's war on drugs, what we are referring to as the forgotten war, tonight we focus on rehabilitation, the final line of defense when interdiction and prevention have failed. Only one of every six drug abusers who needs treatment is receiving it. Peter Viles reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: For those of you who just came in, we are talking about the list that we developed two weeks ago on five things that I want to change about myself. UNIDENTIFIED MALE: Good morning, family. My name is Orlando.
CROWD: Hey, Orlando.
UNIDENTIFIED MALE: One of the things that I'd like to change is my level of responsibility because I feel that as an addict I became irresponsible.
UNIDENTIFIED MALE: I really need to work on that pride issue, you know. I need to humble myself. I need to realize that, you know what, it's okay today that I'm an addict because I'm an addict in recovery and I do have another shot at life.
PETER VILES, CNN CORRESPONDENT: Phoenix House, a residential drug treatment center in Brooklyn, where drug addicts come to rebuild broken lives. Dorian Baldwin is a cocaine addict. He's been in the program three months.
DORIAN BALDWIN, COCAINE ADDICT: It works if you want it to. If you come in with an open mind once you sign your name on that piece of paper that states that your life is unmanageable, unbearable, and someone needs to help you with that, then it works.
VILES: For most drug addicts, though, treatment does not work because most addicts don't give it a chance. Dr. Herbert Cleaver estimates he has treated 5,000 addicts.
DR. HERBERT CLEAVER, ADDICT COUNSELOR: What they all want is controlled use. I mean, what the crack addict wants is to be able to take an occasional hit off the crack pipe. What the alcoholic wants is to be able to knock back a couple with the guys on Friday or Saturday night.
VILES: Government statistics bear him out. The government estimates there are 6.1 million Americans who abuse drugs to the point that they need treatment. 1.1 million do get some form of treatment. And what about the rest? The vast majority, 4.7 million, don't get it because they don't think they need it. The so-called denial gap.
UNIDENTIFIED MALE: Anybody else want to chime in on...
VILES: Treatment isn't always successful. The relapse rate is above 50 percent, but when it works, it literally saves lives. Mitch Rosenthal founded Phoenix House in the late '60s.
MITCH ROSENTHAL, FOUNDER PHOENIX HOUSE: As we're sitting here, there are 6,000 men and women and boys and girls in Phoenix Houses in nine states in America. Most of them, a year from now, will have their lives back together and be changed human beings.
VILES: Bill Scott hopes to be one of them. A recovering heroin addict, he's been at Phoenix House for eight months.
BILL SCOTT, RECOVERING HEROIN ADDICT: People should know that it's not hopeless. Take it from somebody that slept on the trains. There's always a light at the end of the tunnel. Sometimes you might not see it, because that tunnel is really long, but if you keep moving forward eventually you'll get there.
(END VIDEOTAPE)
VILES: Treatment is not cheap, and the federal government at $3 billion a year is the biggest payer for it but numerous studies have shown that treatment is a smart investment of federal money. It is a lot cheaper than prison, and in the long run it does save the government money -- Lou.
DOBBS: And it definitely saves lives 20,000 lives a year lost directly to drug. Peter Viles, tough story. Thank you very much. We appreciate it.
Tonight's thought is on the tough decisions and the way we make decisions and shape our lives, "You choose. You live the consequences. Every yes, no, maybe, creates the school you call your personal experience" that from author, American aviator Richard Bach.
When we continue, "Grange On Point" the unending war for Americans wounded in Iraq and Afghanistan, the battle has only just begun when they return home. General David Grange next. Stay with us.
(COMMERCIAL BREAK)
DOBBS: We cover remarkable news stories all of the time. Sometimes remarkable because of the contrast. This week a story dominating about a 24-year-old by the name of Kobe Bryant. Tonight a story about another young man, a 25-year-old named John Fernandez. And the contrast could not be more overwhelming. Maria Hinojosa reports on Lieutenant John Fernandez.
(BEGIN VIDEOTAPE)
MARIA HINOJOSA, CNN CORRESPONDENT: John Fernandez was a national lacrosse star, a West Point graduate, focused, fast, ambitious. And then at 24 he went off to war.
JOHN FERNANDEZ, WOUNDED IN IRAQ: We had received incoming fire and I was just lying there, and my legs were numb, and I said, oh, God. I just remember sitting there for a second, just not knowing what happened. And I felt for my legs and realized that they were there. I pulled my sleeping bag off and looked at my feet. I just, you know, screamed. I realized that my life had changed forever.
HINOJOSA: John was Christie's strongman, happy and optimistic the day he went off to war. He came back determined not to cry for his wounds. Three men had died right next to him.
FERNANDEZ: I couldn't tell that I was bleeding anymore. You know, I knew that I wasn't going to die. And I just tried keeping everyone else up at that point.
KRISTI FERNANDEZ, WIFE OF JOHN FERNANDEZ: Speed bump.
I haven't felt sorry for myself at all. I know that there's three wives that would love to trade places with me. My husband is home. And you know, I didn't care what brought him home. As long as he's here.
HINOJOSA: Married just before the war in a rushed ceremony, they're managing some simple things together for the first time. And some much more complicated ones as well.
UNIDENTIFIED FEMALE: Why don't you try the stepping up and stepping down?
J. FERNANDEZ: The mind works in mysterious ways because my mind, it doesn't know that my foot's not there so it still sends signals down to my foot and it comes back as pain.
UNIDENTIFIED FEMALE: No pressure on here at all. So that's really good.
J. FERNANDEZ I'm barely putting any weight on it now.
HINOJOSA: He's had prosthetics just a week, but already he's making plans.
You're going to be the first double amputee lacrosse player?
J. FERNANDEZ: I don't know, probably. I'm not sure if there has been but I'll definitely be playing again. Hopefully this year. I don't know. We'll see.
(END VIDEOTAPE)
DOBBS: Tonight, Lieutenant Fernandez told us he's still in some pain. You should know he just played in a golf benefit tournament for the son of his high school lacrosse coach, who has Lou Gehrig's disease.
We turn now to General Grange to talk about the way our wounded servicemen and women are being treated when they come home. General Grange, Lieutenant Fernandez one of unfortunately hundreds of remarkable young men and women wounded. What kind of care? What is the quality of care they're receiving?
GENERAL DAVID GRANGE, RET. ARMY GENERAL, MILITARY ANALYST: Well, the care is quite good. The problem is that the medical facilities are stretched a bit. You know, there's still care being provided to veterans that have been wounded in past wars. And now, of course, the surge from Afghanistan and Iraq. And so the care is I think quality care. It's just that it's overburdened a bit right now.
DOBBS: Is there anything that can be done? Because we talk about the 251 Americans who have been killed in Iraq. Hundreds more wounded. The facilities are being stretched some, according to the reports that we're getting. Is there any way in which we can assure the very best care for these young men and women?
GRANGE: Well, a lot of it's psychological support, Lou, and that's the communities taking care of the G.I's when they come home, opportunities for jobs. The transition, obviously, is a tough one and a lot of times they just -- these soldiers, marines, sailors just want to get back to their unit to continue to serve. And that's probably the hardest part for some of them because they're gung ho, they're determined to continue to serve. And so what opportunities are there for them? Whatever can be done to give them that opportunity should be done.
DOBBS: What organizations are helping them, Lieutenant Fernandez, others wounded, awarded the Purple Heart? How important is that to them, and what can be done for them?
GRANGE: Well, of course, the Purple Heart's just a piece of ribbon, but it's the oldest award, it's the oldest symbol of appreciation to the military since established by General George Washington. And it's well respected through the ranks of the military by other service members. To wear a Purple Heart is a very strong sense of service and sacrifice.
There's a lot of organizations that support, like the Military Order of the Purple Heart, which provides assistance, services, and representation in Congress for all wounded G.I's.
DOBBS: General David Grange, thank you very much. And general, we're going to promise to follow the young men and women like Lieutenant Fernandez with equal exuberance that we bring to a story like, say, Kobe Bryant. Thanks a lot.
When we continue -- the results of our poll tonight. We'll look at some of your thoughts. Stay with us.
(COMMERCIAL BREAK)
DOBBS: The preliminary results of the poll question. Which of Arnold Schwarzenegger's film titles best describes his run for governor? Almost two thirds of you said "Kindergarten Cop."
Turning now to the markets, the Dow Jones Industrials managed to gain 64 points. The Nasdaq losing a fraction. Christine Romans puts it all together for us.
CHRISTINE ROMANS, CNN FINANCIAL CORRESPONDENT: There was some strong economic data today and good news from the retailers, Lou, and that helped the blue chips, but for the Nasdaq it was the fifth day lower in a row. So we're watching that losing streak. But take a look at this.
First the economic news. Jobless claims remaining below 400,000 for a third week in a row. Worker productivity soared in the second quarter. Meanwhile, bond yields fell today after a government note auction found solid demand. And that helped stocks.
The retail stocks rallied. Best Buy and Wal-Mart raised profit targets after decent July sales. So did Gap and Ann Taylor, among many others. And energy stocks were strong as natural gas futures rose 7 percent and oil rose 2 percent. A report showed natural gas inventories last week rose less than 5. But computer networking stocks fell, Lou. These are the stocks that are among the best performers of the year. So some folks are saying that it's natural to see those come off more than the rest of the market.
DOBBS: A lot happening.
ROMANS: A lot really happening.
DOBBS: Those energy prices have got to be of some concern.
ROMANS: Yes, we'll watch those and see if that follows through or if it's just a one-day kind of move.
DOBBS: Thank you very much, Christine Romans.
ROMANS: You're welcome.
DOBBS: Now something we want to do as we do each evening, we want to look at some of your thoughts. Many of you wrote in about the Kobe Bryant case.
James Bogle of High Springs, Florida said, "The media circus around Kobe Bryant is nothing more than tabloid journalism in its raw naked ugliness."
Ben Franklin, Le Grange, Texas saying, "What seems to be the most compelling issue is that bad news makes a lot of money, a lot of talk, and in the end, Kobe Bryant and that young girl's reputation is just so much grist and fodder for the media. You're right Lou, it says a lot about us as a people."
Roger Van Horsen of Chapin, South Carolina, "Thank God we no longer have to worry about Osama, Saddam, or Liberia and can now focus on what's really important, a very tall guy in a court room."
And on our series of Special Reports on the forgotten war, W.T. Barron of Wisconsin said, "On one hand we tell people "Do not do drugs" yet 10 percent or more of the commercials on TV are on pharmaceutical company or another encouraging you to ask your doctor for a chemical by name."
And Julian of Moorhead, Minnisota said "I think we should legalize marijuana like we did with alcohol in the 1930's and "Sin Tax" it.
Frank Kelly of Victorville, California, offered a somewhat different solution, "More money needs to be sent on prevention programs, especially with younger aged children. More money for prevention will definitely lower drug and alcohol abuse.
We appreciate hearing from you. Send us your thoughts at loudobbs@CNN.com.
Finally tonight, something you've never seen before. A cannibal in space. Thanks to new pictures from the Hubble space telescope and its newly installed camera we're actually able to see one galaxy actually devouring another. The smaller galaxy, it's known as tadpole, is being ripped apart by the gravitational pull of the larger galaxy. This enhanced photo shows the stars being pulled away. This sort of cannibalism is an activity that scientists have long imagined and conjectured and in fact predicted but had never seen before.
That's our show for tonight. Thanks for being with us. For all of us here, good night from New York. "LIVE FROM THE HEADLINES" with Anderson Cooper coming up next.
END
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Overmedicated?; The War On Drugs: Treament Options; Christine Romans Stock Market Report>
