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Lou Dobbs Tonight

Isabel Leaves Trail of Destruction; Galileo Set To Rendezvous With Jupiter; Editor's Circle Discusses State Of The Economy

Aired September 19, 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: It's still a war, but is the Pentagon looking after its own? Lisa Sylvester reports on the wounded service men and women who are asked to pay for their own food while recovering in U.S. military hospitals.
In "News Makers" tonight, the editors of "Fortune," "Forbes" and "BusinessWeek" will discuss regime change at the New York Stock Exchange, the stock market, and the gap between rich and poor.

A new twist tonight in the legal showdown over the California recall election:

And a remarkable mission to Jupiter ends this weekend -- astrophysicist Charles Liu on Galileo and its many achievements.

ANNOUNCER: This is LOU DOBBS TONIGHT for Friday, September 19. here now, Lou Dobbs.

Good evening.

Tonight, Hurricane Isabel has gone, but the scale of destruction is only now becoming clear; 17 people are dead. Nearly five million homes and businesses tonight are without power. Floodwaters swamped the centers of several towns and cities, including Baltimore. Emergency crews in Baltimore have rescued at least 400 people. There was also extensive damage to homes and businesses in Virginia.

Residents there in some areas were ordered to boil their drinking water because water treatment plants were flooded. But the worst damage is in the Outer Banks and other parts of low-lying North Carolina. Search-and-rescue teams are checking wrecked home for any casualties.

We begin our coverage tonight with Susan Candiotti in Kitty Hawk, North Carolina, one of the hardest-hit communities -- Susan.

SUSAN CANDIOTTI, CNN CORRESPONDENT: Yes, indeed.

And one of the major problems here is flooding. Here, you see a stretch of probably about a half mile or so of flooding that certainly comes up to well beyond my knee-high boots. Just over my shoulder, perhaps you can also see that some area business people have been trying to make their way to their businesses, some of them in rowboats. And you also see some traffic going by.

But the fact is, no one is supposed to be out here unless you are part of an emergency operation or -- there are not supposed to be any residents coming out here to their homes as yet because it's simply too dangerous. There are power lines down. There is no power. And authorities say they don't want any residents coming out here just yet. That is why there is a curfew that remains in effect, went into effect at noontime yesterday, and will remain in effect until at least noontime tomorrow.

Now, we had a tour of some of the damage along the oceanfront earlier this afternoon, along with the mayor of Kitty Hawk. And we saw a number of homes that had been -- had fallen into the sea, their pilings completely gone out from under them. No homeowners, or very few around there, only a handful had ridden out the storm there. And just now, we are getting some official numbers on the damage.

In Dare County, which covert Outer Banks, about $545 million worth of damage, and at least 313 of that, Hatteras Island, including Cape Hatteras. Now, that is from an aerial survey only. So they do expect those numbers could very well be much higher.

We also had a chance to talk to a man who tried to ride out the storm in his oceanfront home. And after a time, it simply got too scary and he got out of there.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I had to go up this road, which is Lindbergh (ph), and get shelter down the street, where I was still outside for approximately six or seven more hours.

CANDIOTTI: So you walked in your waders.

UNIDENTIFIED MALE: With all the debris and everything. It's by the grace of God I made it. I don't know why he wants me around. But he got me through this one.

(END VIDEO CLIP)

CANDIOTTI: He did make it through that one. But there are a lot of people who have not even had a chance to get back to their homes yet, Lou.

And, at this point, authorities tell us they don't know when they will let homeowners get back to see their homes and survey damage for themselves -- back to you.

DOBBS: Susan, thank you very much -- Susan Candiotti, reporting from flooded Kitty Hawk, North Carolina.

Tonight, 4.5 million homes and businesses are still without power after the hurricane roared through communities. Nearly two million of those are in the state of Virginia. One local power official there said, Isabel is the worst storm to have hit the area in a century. More than one million homes and businesses in Maryland also have no power tonight.

And further north, power outages are affecting parts of Pennsylvania, 700,000 people without power tonight. Utility companies all along the area have sent thousands of workers to repair power lines. Many of those workers have come from other states. They are first trying to restore power to hospitals and other emergency facilities, of course.

Baltimore is among the hardest-hit cities. The hurricane caused a surge of water that flooded large areas of the historic city center. Many people were rescued by boat.

Bill Prasad has our report -- Bill.

BILL PRASAD, CNN CORRESPONDENT: Lou, President Bush has now declared Maryland a disaster area.

Many of the folks that I have talked to this Historic Baltimore neighborhood called Fells Point say this is the worst storm they've seen in decades. And in a couple of hours, those folks, the rest of the folks in Maryland, Virginia and D.C., many of them, will be in the dark.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): Emergency workers float door-to-door helping people who are stranded in their homes. Water as deep as seven feet in some places buries cars and floods businesses. The combination of high winds and Friday's high tide turned streets into rivers.

And, at one point, more than 600,000 people in Baltimore and its surrounding counties were without power.

MARTIN O'MALLEY, MAYOR OF BALTIMORE: Well, it's certainly deeper than any of the pictures that we saw from years past. Lucky me, I get the world's biggest snowfall and Baltimore's biggest flood. Next will come the plague of locusts.

PRASAD: In Virginia, Isabel turned off the juice to seven out of every 10 residents. Utility officials call the damage to the system catastrophic in some places, saying many residents will be without power for an extended period.

GOV. MARK WARNER (D), VIRGINIA: I think the government has done all it can to pre-prepare. The utilities had made sure that they briefed us of their contingency plans. They said they were ready. Now they have got -- the utility companies have to got to carry out those plans and get this power restored.

PRASAD: In Alexandria, Virginia, the Potomac River overflows its banks, creeping into the downtown, flooding businesses and depositing debris in streets.

In Washington, the federal government is shut down for the second day. The city of trees becomes the city of fallen trees, as branches and bark litter many streets. D.C.'s mayor urges many residents to start the cleanup. ANTHONY WILLIAMS, MAYOR OF WASHINGTON, D.C.: I want to urge all of our residents, yes, to stay put, if at all possible. But if you don't have any public safety issues in your neighborhood, get out and about. Begin the cleanup there.

(END VIDEOTAPE)

PRASAD: Here in Baltimore, the cleanup process has been going on for hours. In some cases, the fire department has pulled up and tried to help some folks drain the large amounts of water that are in their basements. This will be a long process. And later, it will probably have to be done by candlelight.

We are live in Baltimore, Maryland, tonight. I'm Bill Prasad -- Lou, back to you.

DOBBS: Bill, thank you very much.

Hurricane Isabel, what was Hurricane Isabel, has now been downgraded to a tropical depression. Tonight, the system is heading into Canada. People in this country who faced the full fury of Isabel today counted the cost of damage and some blessings.

These are some of their stories.

(BEGIN VIDEOTAPE)

ROBIN MOGK, VIRGINIA BEACH RESIDENT: We haven't been able to go back. I did call my neighbor about 6:00 yesterday. And they told me the siding on the house had come off, but the trees around it were still up. But I know my neighbors' trees came down and broke swing sets and pools and stuff. There was still a lot of winds and stuff last night. So I'm still a liberal nervous so see what I've got when I get home.

MEYERA OBERNDORF, MAYOR OF VIRGINIA BEACH: When I got back there, in the middle of the night, I could not believe it was my home. So we're going to be digging out and cleaning up for a good while.

UNIDENTIFIED FEMALE: The next door neighbor's tree just uprooted and fell and went into our house.

UNIDENTIFIED MALE: Everybody's just real lucky. Nobody got killed and nobody got seriously hurt. There's a lot of property damage, a lot of property damage. But they're all good neighbors. We'll all chip in and get everybody back on their feet.

BOBBY CHAMPION, NORTH CAROLINA RESIDENT: As you can see, the Outer Banks, it's got two sections of it missing down there. I understand the Kitty Hawk pier has also got sections moving. But major devastation. The Wilbon (ph) motel down there is completely demolished.

ELLEN VON KARAJAN, SOCIETY FOR THE PRESERVATION OF FEDERAL HILL & FELLS POINT: We are under several feet of water. Even as I speak to you now, people are canoeing down our side streets and our alley streets, kayaking. It's a very, very, very bad flood here. And it happened so quickly.

I think that was the thing that really caught us by surprise, because this was just, at least so far for us, the storm of the century.

(END VIDEOTAPE)

DOBBS: And tonight's quote speaks to the character and the will of the people of Virginia Beach and in fact the people in communities that were in path of Hurricane Isabel: "We have this wonderful spirit. When the sun comes out, we can tackle anything" -- that from Virginia Beach Mayor Meyera Oberndorf.

Still ahead here: two explosions in Iraq today, a dramatic surrender. Walt Rodgers will have the latest for us from Baghdad.

And American troops wounded in action pay a tremendous price to serve their country. But, unbelievably, the U.S. government wants them to pay more. Lisa Sylvester will have the report on this important story that will be disturbing to all Americans.

And in our "News Makers" segment tonight: why the New York Stock Exchange may be headed for radical change. We'll talk about that and more with editors of the nation's top business magazines.

Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Still ahead: An eight-year mission in space is scheduled to end this weekend. Astrophysicist Charles Liu joins us to talk about all the Galileo has accomplished.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Baghdad rocked by two explosions tonight, one of them a roadside bomb that authorities say blew up prematurely. Only minor wounds were reported in that explosion. The blast came only hours after one of Saddam Hussein's former top advisers surrendered to U.S. forces.

Walter Rodgers reports from Baghdad.

(BEGIN VIDEOTAPE)

WALTER RODGERS, CNN CORRESPONDENT (voice-over): Former Iraqi Defense Minister Sultan Hashim Ahmad agreed to surrender to the United States after a week of negotiations, according to an Iraqi human rights mediator. He was No. 27 on the U.S. most-wanted list. A coalition spokesman was quick to crow about the latest U.S. catch.

DAN SENOR, COALITION SPOKESMAN: I think all of them are helpful. I think all of them have basically had the sort of total communicative effect of demonstrating to the Iraqi people that the curtain is closing on their past, that the worst days are over.

RODGERS: General Hashim Ahmad was the Iraqi official who signed the cease-fire on behalf of Saddam Hussein after the first Gulf War. Befitting his rank and as part of the terms of his surrender, he apparently got an agreement he would be treated better than much of the rest of Saddam's government.

COL. JOE ANDERSON, U.S. ARMY: His surrender would guarantee that he will be treated with dignity and respect and be allowed the opportunity to explain his former situation.

RODGERS: Because the general surrendered, U.S. forces were at least spared an assault on his home that might have resulted in casualties among his family and also U.S. troops. An ambush of U.S. soldiers Thursday evening claimed three American lives. Two soldiers were wounded.

LT. COL. GEORGE KRIVO, U.S. ARMY: We have seen the tactics change from close-in encounters with RPGs and more small arms to encounters that are more apt to use mortars and improvised explosive devices, which tend to be more of a standoff sort of weapon.

RODGERS (on camera): With the attacks on U.S. soldiers now a daily occurrence, U.S. officials say they hope the surrender of General Hashim Ahmad may discourage some future ambushes.

Walter Rodgers, CNN, Baghdad.

(END VIDEOTAPE)

DOBBS: We report each night the service men and women killed in Iraq. Tonight, because it is very important, we know to you, we will also be reporting the number of wounded in action. As of tonight, 301 American service men and women have been killed since the beginning of the war against Saddam Hussein last March; 1,272 others have been wounded in action.

As we reported, hundreds of American troops have been wounded in Iraq. That is a severe price to pay. But, apparently, it is not enough. The federal government pays for most of the treatment of our wounded troops. But, incredibly, the government also requires wounded service men and women to contribute to the cost of their hospital stays.

Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Wounded service members spend weeks or months recovering from their injuries. But when they leave the hospital, they are required to reimburse government for their meals.

Bill Murwin was wounded in Iraq, his left foot partially amputated. BILL MURWIN, MARINE RESERVIST: My father-in-law said -- and I don't remember saying it, but my father-in-law said that I told him, I'm having to pay for getting shot. And I wasn't shot. I was hit with a grenade, but it's the same significance, you know? I'm paying for getting injured.

SYLVESTER: By law, the Pentagon is required to ask service members to pay the government back for the basic food allowance of $8.10 a day.

The rationale is that service members are double-dipping, getting both the allowance and the hospital food. Murwin's food bill while he was at the Bethesda Naval Hospital was $210. He says high-ranking officers may be able to pay for their food, but younger service members, who make a lot less, may not be able to.

MURWIN: I was only in Bethesda for a month. But there were Marines there that had been there since the second day of the war. So we're looking at three months. And that's an incredible bill on the back end.

SYLVESTER: After Murwin sent his check to the military, he found out Congressman Bill Young had already paid for the charges. Young is lobbying to change the law.

REP. BILL YOUNG (R), FLORIDA: It's insulting to the soldier. He loses a leg or he loses an arm or loses an eye, whatever, he's in the hospital because of his combat wounds, and when he leaves, he's charged $8.10 a day for the food that he consumed. That's an outrage. I can't find anybody that thinks it's a good idea.

(END VIDEOTAPE)

SYLVESTER: The irony is that it costs the government a lot more to try to recoup the fees than it does to just wave waive the section of the law -- Lou.

DOBBS: This idea, whose was it?

SYLVESTER: Nobody wants to take credit for this. This was actually...

DOBBS: I would have guessed that.

SYLVESTER: ... an amendment from 1981. But since 1981, they have apparently been asking service members to pay up for this.

DOBBS: Well, hopefully, it will be changed, and changed quickly.

Lisa, thank you very much -- Lisa Sylvester reporting from Washington.

Coming up next here: the story of a remarkable soldier who fought in Iraq. Hilario Bermanis (ph) lost two legs and a hand fighting for this country. He wasn't a citizen then, but he is now. Casey Wian will have his story in our feature, "Heroes." What will the New York Stock Exchange do for new leadership? Christine Romans will report on the latest in the search for a replacement for Dick Grasso.

And we'll tell you how Bob Nardelli turned a career defeat into a triumph at Home Depot, as we continue our look at "Extraordinary Careers."

Stay with us.

(COMMERCIAL BREAK)

DOBBS: A new twist tonight in the tangled California recall.

The federal appellate court that postponed that election told said it will reconsider that decision to postpone it. The 9th U.S. Circuit Court of Appeals has appointed an 11-judge panel to review the decision of three other judges. They decided to postpone the October 7 election, ruling that voting machines in six California counties must be modernized. No word tonight of when we'll find out what the final answer from the court will be and when the recall election will actually take place.

And turning to our poll question of the evening, the 2004 presidential race, our question tonight: Do you think 10 candidates for the Democratic presidential nomination, are they too many, just right, or not enough? Please cast your vote at CNN.com/Lou. We'll have the results later in the show.

On Wall Street today, minor losses didn't keep the Dow and the S&P from scoring their best week's performance in almost four months. On the day, the Dow down 14 points, the Nasdaq down 4, the S&P down 3. And the board of the New York Stock Exchange today held its first meeting on its future without former chairman Richard Grasso.

Christine Romans is here with the latest for us -- Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: And, Lou, the first order of business is to find a new leader for the New York Stock Exchange.

Several potential replacements for Dick Grasso have declined. The board was forced to appoint a search committee at its board meeting told. Larry Fink of BlackRock Group will lead it, this as the structure of the board and the exchange appears up for grabs.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): Director Henry Paulson, Goldman Sachs' CEO, proposed keeping NYSE-listed companies and the brokerage firms off the NYSE board of directors, an attempt to quiet concerns that they have a conflict, sitting on the board of the exchange while being regulated by it, and perhaps to quiet critics who think the exchange shouldn't be allowed to regulate itself at all.

NELL MINOW, EDITOR, "THE CORPORATE LIBRARY": We don't let manufacturers decide how much pollution they're going to emit into the air and water. We don't let drug manufacturers decide when drugs are safe. The government plays a role there.

SYLVESTER: In a report called "Can't Put Humpty-Dumpty Together Again," analyst Charlotte Chamberlain said NYSE's self-regulatory status is threatened. And she says, Grasso's resignation puts the equity auction system at the exchange at risk.

Scholar Jeremy Siegel calls the entire specialist system anachronistic.

JEREMY SIEGEL, WHARTON SCHOOL OF BUSINESS: It seems like the rest of the world is moving towards electronic trading. And I think that that ultimately is going to be the cheapest way that most investors can trade.

(END VIDEOTAPE)

ROMANS: Now, Lou, specialists say they have heard the death knell of their industry many times before. They say they'll continue on with or without Dick Grasso.

It is interesting, though. Henry Paulson of Goldman Sachs only a few years ago was saying that all-electronics trading sounded like a pretty good thing. And now Goldman Sachs actually own specialists. So some interesting times there. In the meantime, Bob Britz and Kinney are running the New York Stock Exchange day-to-day. And all the board members who were previously there are still there on the board.

DOBBS: And the search committee, amongst those, Gerald Levin, the former CEO of AOL Time Warner?

ROMANS: Absolutely, Madeleine Albright as well. Mel Karmazin, who said that he voted to keep Dick Grasso as well. Some of the members, Lou, have been telling me the last couple of days that they asked Carl McCall for an apology from the members who voted to keep dick Grasso and want to know why they are still on the board.

DOBBS: It's beginning to look like an apology won't quite cover the necessary changes at the Big Board.

Christine, thanks -- Christine Romans.

Coming up next: Dick Grasso's past, the New York Stock Exchange exchange's future. We'll be hearing from the editors of "BusinessWeek," "Fortune" and "Forbes."

We'll also tell you about a surprising career turnaround. It's more than a story about business. It's a story about how to deal with setbacks in life.

And the remarkable story of a soldier who paid a very high price to fight for this country in Iraq, even though he wasn't a U.S. citizen, his story in our feature, "Heroes."

Stay with us.

(COMMERCIAL BREAK)

DOBBS: For more on this remarkable week, I'm joined now by the heads of three leading magazines in our weekly feature, "News Makers," Mark Morrison, the managing editor of "Business Week," Rik Kirkland, the managing editor of "Fortune," Tim Ferguson, the executive editor at "Forbes."

Gentlemen, good to have you with us.

Dick Grasso is gone. The exchange seems to be scrambling. What do you think happens from here, Mark?

MARK MORRISON, MANAGING EDITOR, "BUSINESSWEEK": They're having a hard time finding someone who wants to take the job. It's a very difficult job right now. And it's very important that they get someone with credibility.

My idea is, go outside of these Wall Street names that they're talking about. Get someone like Jack Welch or Larry Bossidy, more of a CEO type, to go in and really go through the place and think how this thing should be restructured.

DOBBS: You think those fellows or someone of their like stature would have an appetite for this, Rik?

RIK KIRKLAND, MANAGING EDITOR, "FORTUNE": I don't know. The old pay scale would appeal to them.

(LAUGHTER)

KIRKLAND: I'm not sure the new one will.

DOBBS: It would be a pay increase for quite a few CEOs in the country.

KIRKLAND: Exactly. It's possible.

But there's other issues beside someone to fill Dick's shoes. I think we've got huge questions about, again, the structure of the exchange, as you were saying earlier. You've got to split off the regulatory function, I think. We're all waiting to see what Donaldson has to play about this. He's going to play an influential role. So it's very much a moving target. And they clearly were not ready for any of this.

DOBBS: Well, right now, this has created -- the resignation of Grasso has not ended the questions. In fact, it has accelerated and raised the number of questions, Tim. What's next, in your view?

TIM FERGUSON, EXECUTIVE EDITOR, "FORBES": It absolutely has. I think the Big Board belongs in public ownership, like a number of the major exchanges around the world. And I think that would help to deal with questions of structure, of regulation and of pay in governance.

DOBBS: And the specialist system itself, in which specialists firms are interposed between buyers and sellers, it is likely, it seems to me, to come under severe attack. What do you think?

MORRISON: Yes, it's going to come under severe attack. I think I would like to see it survive in some way, with more transparency.

There's a question whether it can be do that with complete transparency, whether it can survive. But I think, as part of a competitive marketplace, it's a nice thing to have. It does create some liquidity. These are risk-takers there on the floor who take positions. And it helps the market work.

DOBBS: And they're handsomely-paid risk-takers.

KIRKLAND: Yes, the risk may be there, but they seem to make a pretty good profit on it, which is an argument, I would say, for -- I don't think it's the biggest problem in the world to have this specialist system. But if it changes or it goes away, I don't think it will really hurt us. This happened in Europe some years ago. And there's loads of other markets that don't have them. I'm not sure they're essential.

DOBBS: Despite everything this week, the turmoil at the New York exchange,the S&P 500, the Dow Jones industrials posting the best performance in 3 1/2 months, Tim. Is this is a sustainable bull market now?

FERGUSON: It would appear. We're still waiting, of course...

DOBBS: He said with...

(LAUGHTER)

FERGUSON: The proverbial other shoe to drop. The effect on the consumer spending of the continued lag in the employment numbers, at least official employment numbers. But there is even in that quarter some indication of strength in some of the unofficial employment numbers, some of the online agencies and such that are showing some strength.

MORRISON: The economy continues to have some much going for it. Now you have the added impetus of lowering oil prices. They seem to finally be falling, as we thought they would right after the Iraq invasion.

DOBBS: Just a couple of months ago, Allen Greenspan, the chairman of the Federal Reserve, was talking about his great concerns about natural gas prices. They have also fallen. As we look at this economy, you have to wonder where the problem is, except in the area of jobs.

KIRKLAND: There's another area which I think is that, and this is more long term, the U.S. is still dragging the rest of the world along in recovery. If the U.S. falters or if does get overheated, which some are concerned about, then Europe and Asia don't know how to grow without us growing.

MORRISON: It starting to get help from Japan is growing at the moment. We'll see if that is sustainable. China's certainly growing even at a faster rate than was thought. So, there's some engines starting to go out there.

KIRKLAND: It feels like a good spot right now.

DOBBS: Let's talk politics very quickly. California recall on again/off again, circuit court of appeals, 9th circuit there, what do you expect to happen, Tim?

FERGUSON: It's a little legal game. I remember this from January 2001, was that it? December 2000, maybe that's when it got settled. Same game, just different players.

DOBBS: And we have been speaking of players, there's Al Gore up on the screen, coming to the aid and rescue of embattled Governor Gray Davis and General Wesley Clark joining a crowded field of Democratic candidates for the nomination. How is this looking to you? Does Wesley Clark have a viable candidacy? The Clintons both supporting him. What of you make of it?

MORRISON: Well, it's going to be a good year for journalism, I think. We have a lot of exciting candidates in the race. He's particularly interesting. I don't think the White House is eager for him to make it on to the ticket.

KIRKLAND: He's very attractive. He's going to learn the game quickly. He's already gotten in trouble for being candid in interviews which is not something that's valued in Washington. He's going to have to learn how to present, oil it down. He's a very smart guy. I think he's shaking up the race.

DOBBS: Are there any of these ten, Rik, we consider done? If we're going to segregate it?

KIRKLAND: I don't want to name names. On an I.Q. score, there may be a few below him.

DOBBS: Well that seems to be a national sport to decide which political candidate is smartest. The current president seems to have overcome those concerns, suggestions.

FERGUSON: I think you need to moderate a debate of ten, Lou.

DOBBS: A debate of ten. I think that would be fascinating. I'm sure the information imparted in that would be immensely valuable to voters all over the country. I think it going to need a little whittling down. How much trouble to you think, Tim, President Bush is in? We're seeing some numbers fall, how significant?

FERGUSON: If the U.S. economy is growing at 5 percent a year by early next year, I think he can survive several falls in Iraq.

KIRKLAND: He's going to be a strong candidate. We'll have to see. We'll have to see who runs against him, see what the economy looks like. MORRISON: I agree with that. But I think the Democrats' best chance is come forth with someone like Clark who can appeal to swing voters in the middle. This is a guy who voted for Reagan and Nixon.

FERGUSON: He thinks he voted for Nixon, he's not sure.

DOBBS: He thinks.

Within that context, Iraq, you mentioned as one of the issues. Where's American business in Iraq? Why isn't American business stepping in, showing what it can do in Iraq? Where is Bechtel? Where is the driving engine that can show, not only Iraqis, but all of the Middle East, the world, what can be accomplished in building infrastructure and getting it done?

MORRISON: I think it will happen. It's just I think they're waiting for things to clarify themselves over there, to settle down. For the security to be nailed down. Then, I think, they'll be there.

KIRKLAND: Exactly. You know, we need to not be losing four, five, six soldiers a day.

MORRISON: When the $87 billion starts flowing into the situation, they will definitely be there.

DOBBS: Tim?

FERGUSON: One would hope, although there's a -- it's probably an even higher risk premium than you face with the trial lawyers in the United States.

DOBBS: Significant risk premium, unfortunately. Tim, thank you very much. Rik, Mark, we thank you.

Still ahead here, I'll be sharing my thoughts on what other changes are needed at the New York Stock Exchange now that Dick Grasso is gone.

Also, extraordinary careers, the inspirational store story of a man who had to redefine his career after 30 years. The author of the "5 Patterns of Extraordinary Careers" James Citrin joins us.

And mission accomplished. One of NASA's most successful space probes prepares for its final encounter with the planet Jupiter. Astrophysicist Charles Liu joins me. We'll be talking about Galileo.

That, a great deal more still ahead. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Success can sometimes be defined in part by how a person deals with defeat. In an extraordinary career, Bob Nardelli was denied the chance to run the largest company in the world, so he took his skills, learned while working at GE, applied them to a struggling retail somewhere built not only a successful turn around but continued a very successful career. (BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: I might have something down here for you.

UNIDENTIFIED FEMALE: $9.32.

DOBBS (voice-over): When Bob Nardelli took over as CEO of Home Depot he never worked in retail.

UNIDENTIFIED MALE: We have a lifetime service warranty on this product.

DOBBS: So, he went on a tour. Seven stores, seven cities, seven days.

BOB NARDELLI, CEO HOME DEPOT: My job was sort out those things that we really wanted to covet. The things that we wanted to build into the future. And how do we do that in a consistent manner?

How about that? Bravo. Bravo.

DOBBS: Nardelli knows about meeting goals. He did, after all, spend 30 years working for Jack Welch at General Electric. But Welch passed him up for the top job at GE and Nardelli wasted no time moving on. He was CEO of Home Depot a week later.

NARDELLI: To say you were not disappointed would be a misrepresentation. You know, it's what you trained for. Look, you train to lead a company. You develop your skills. You hone your skills to be able to provide the leadership.

UNIDENTIFIED MALE: How are you?

DOBBS: And it was the first change in leadership at Home Depot in the company's 22-year history as CEO and co-founder Bernie Marcus stepped aside and put Nardelli in charge.

Within Home Depot there was concern Nardelli would try to GE-ize the company and its culture.

NARDELLI: It would have been a huge mistake to come in and start using sic sigma (ph) jargon. The associated may have thought I was talking in tongue. The important thing was to bring the process, to bring the tools and the methodology to go through problem solving.

They can control, you know, merchandising.

DOBBS: Deals with suppliers were renegotiated and centralized.

NARDELLI: If you can imagine at least 16 separate buying offices a supplier would have to convince the head of each department in each buying office. So just the logistics of that.

We can clean this up quickly.

DOBBS: The reporting structure was also streamlined. NARDELLI: We did a lot of delayering. We spread the organization out. Now we're bringing it back in a very constructive manner.

DOBBS: There was a new commitment to refurbishing stores. Paint centers were introduced.

NARDELLI: It was the fastest reset ever done in the history of the company. We did every store in 90 days. The most innovative set...

DOBBS: Space was cleared to sell bigger ticket items.

NARDELLI: We were kind of locked into a thought if you can't sell it out of a rack you won't sell it. Well, the fact is, we weren't selling it. Today we have gone from zero to third in the market in the appliance business.

The ability to bring into our stores...

DOBBS: And exclusive contracts were signed with popular vendors.

NARDELLI: We'll sell over 200,000 John Deere tractors. First year, average ticket of $2,000.

DOBBS: Those changes have yielded results, a new store opening every 43 hours.

UNIDENTIFIED FEMALE: Thank you.

DOBBS: New stores mean new jobs, and lots of them. Home Depot will hire 40,000 people this year, as it has every year since Nardelli arrived.

NARDELLI: I need a head cashier, if you could just ask her a second.

DOBBS: A success sharing plan pays out $16 million in cash to hourly employees who reach annual sales goals.

UNIDENTIFIED FEMALE: And it's not going anywhere on you.

DOBBS: Nineteen million hours a year are spent on employee training.

UNIDENTIFIED MALE: Change the chandelier?

UNIDENTIFIED FEMALE: Yes.

DOBBS: Those same employees put in 7 million hours of volunteer service in their communities.

(END VIDEOTAPE)

DOBBS: Nardelli has achieved all of those changes at Home Depot in three short years. Joining me now, James Citrin, the author of "The 5 Patterns of Extraordinary Careers."

Jim Nardelli's story is fascinating. He didn't miss a beat, literally when Jack Welch said, "You're not the guy."

JAMES CITRIN, AUTHOR, "5 PATTERNS OF EXTRAORDINARY CAREERS": A week later, he went to Home Depot and what's so great about Bob and Home Depot -- for now it's all about home depot. He's excelling and he's hitting on all cylinders.

DOBBS: Now, as one who's interested in the legends of business, Jack Welch tells the story of flying in on Sunday to tell everybody what the decision was and no one knew what was happening and Jeffrey Enmalti (ph) told -- all at the same time? Nardelli ends up with a new job as CEO in one week. That's a pretty quick turnaround, by any standard.

CITRIN: That is the quickest in history.

DOBBS: So you think there might have been some indication?

CITRIN: Well, no. But here's key thing. It is -- Home Depot is a really important company, and that is incredibly important to Nardelli. The company is adding $60 billion or plus into the economy. It's training 300,000 employees in the country on an annual basis with these...

DOBBS: He's over the -- he's over the GE.

CITRIN: Oh, he is completely....

(CROSSTLAK)

CITRIN: It's amazing.

DOBBS: He's quite a guy.

And let's -- you know, one of the thing that we've done this week, because it's an extraordinary series about some extraordinary people this week -- and we thank you for that.

Let's take a look at the poll results, when we asked our viewers are you satisfied with your career or how satisfied you might be. If we could put those results up there. There they are. Very -- if you look at those -- very 31 percent; somewhat 32 percent; not at all, 37 percent.

Now I think that's pretty good, 63 percent. But, you know, your heart kind of reaches out to that 37 percent who haven't been able to find something they love.

CITRIN: But. you know, our research actually showed a little bit more pessimistic than this. But the point is that there's an optimistic message in there. Only a third of the people are truly satisfied with their careers. But our research found that the "The 5 Patterns of Extraordinary Careers," if they're followed, they can really help people be both successful and satisfied.

DOBBS: Now you sound like a book author, Jim Citrin.

CITRIN: Well...

DOBBS: The -- you said more pessimistic. Compare your findings versus those.

CITRIN: Only 9 percent of the American professionals that we surveyed are truly passionate about and feel like they're leveraging their strengths in their careers.

DOBBS: Our -- this is a real tribute to our audience. You're in better company than you usually attend to.

CITRIN: That's true.

The goal, though, is to move that third up to 90 percent and let people really be happy about their...

DOBBS: Well, let's talk about that 37 percent. And let's put up those five patterns and these qualities -- if you could just --

Understand the value of you.

CITRIN: This is how careers really work. And understanding that is a key.

Two is how you work with people, making those around you successful. And Bob Nardelli -- we didn't get a chance to tell the whole story -- he has made that company successful with the people.

DOBBS: I think in fairness, we should say, Bernie Marcus (ph) and Ken (UNINTELLIGIBLE) started it.

(CROSSTALK)

CITRIN: Oh, they were legends and they built a great company. But it's doing better than it ever has before.

DOBBS: Benevolent leadership.

CITRIN: That is, focus on those successful around you more than your own success.

DOBBS: Permission paradox?

CITRIN: Find creative and effective ways to get access to the opportunities that you really want.

DOBBS: And positive differentiation.

CITRIN: Don't just do what people tell you to do. Do your jobs well, but then find innovative ways to add value.

DOBBS: And even -- the right fit, even I can figure out. CITRIN: Find the right fit.

DOBBS: It's also one of the toughest, isn't it?

CITRIN: It's -- it is tough. But you know what? If you know that that's a key, migrate over time and to those things that you do well, you work with people that you like and respect, and that you're really happy and hitting on cylinders.

DOBBS: Well, I know you have achieved that. I've been fortunate enough to. We hope everyone listening to you and watching you tonight will have the same -- the same happy result. We thank you for being here this week. It's an extraordinary look at extraordinary people who have been able to achieve success and satisfaction in their lives. And we thank you, Jim.

We also want to thank Philippa Holland, the producer of this remarkable series. She did an outstanding job, and our congratulations to her.

A reminder to vote in tonight's poll on the upcoming presidential race: "Do you think 10 candidates for the Democratic presidential nomination are too many, just right or not enough?" Cast your vote at cnn.com/lou. We'll have the results coming up for you later in the show.

But coming up next. the story of a true American hero. He fought in Iraq for this country though he wasn't a citizen. He paid a heavy price for his bravery. Army specialist Hilario Bermanis tonight in "Heroes."

(COMMERCIAL BREAK)

DOBBS: We turn now to "Heroes," our weekly look at service men and women who have fought in Iraq, who have returned home to face new and oftentimes very tough challenges.

One of the nearly ,300 soldiers wounded in Iraq is army specialist Hilario Bermanis. During his deployment in Iraq, he and another soldier were attacked by rocket-launched grenades. The other soldier lost his life. Specialist Bermanis lost three of his limbs.

Casey Wian has his story.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNNfn CORRESPONDENT (voice-over): Army specialist Hilario Bermanis is fulfilling a life long dream -- becoming an American citizen.

HILARIO BERMANIS SNR., FATHER: Ever since he was a kid, he's been wanting to be a U.S. citizen.

WIAN: Three times the 21-year-old nearly lost his life in service to his adopted country, once in combat in Iraq and twice because of his war wounds. Bermanis grew up in Micronesia, a South Pacific island nation his family still calls home. But America, the U.S. Army and a chance for a better education lured him away.

HILARIO BERMANIS SNR.: Didn't have enough money to put him through college. That was a great opportunity for him and I encouraged him. He wanted that. I encouraged him.

WIAN: Now Bermanis is adjusting to a new life without his legs and part of an arm.

ANTHONY PRINCIPI, VETERANS AFFAIRS SECY.: When I first met him, he was very depressed, and I wasn't sure whether he was going to come around. But I think in the intervening past weeks, as the army has worked with him and people from my department have worked with him, he has begun to get involved in physical rehabilitation. So he's come a long way.

WIAN: Still, he isn't ready to talk about his experience. But becoming an American citizen puts a smile on this soldier's face.

HILARIO BERMANIS JR., WOUNDED IN IRAQ: So help me God.

UNIDENTIFIED MALE: Congratulations. You're a citizen of the United States.

WIAN: Bermanis still hopes to pursue the education he always wanted,. But his family wants him back home, where he would face new challenges.

PETER CHRISTIAN, SPEAKER OF CONGRESS, FEDERATED STATES OF MICRONESIA: The mobility that he has today would be difficult. Not all of the roads are paved. There are no sidewalks. To earn a living or to make a living normally entails fishing, climbing a tree and doing chores that would require a complete possession of limbs.

WIAN: Either way, Bermanis faces months of rehabilitation, fittings for prosthetics and an uncertain future.

PRINCIPI: I salute you and I thank you and I stand with everyone at the Department of Veterans Affairs prepared to assist your return to civilian life.

WIAN: It's only appropriate, because Bermanis and nearly 1,300 other wounded Iraq war veterans have been there for America.

Casey Wian, CNN, reporting.

(END VIDEOTAPE)

DOBBS: A remarkable story about a man we are proud to call a fellow American.

Please stay with us.

(COMMERCIAL BREAK) DOBBS: The results of tonight's poll. The question, "Do you think 10 candidates for the Democratic presidential nomination are too many, just right or not enough?" Fifty percent of you say too many; 30 percent -- 36 percent, rather, say just right; 14 percent would like to see one or two more, apparently.

(LAUGHTER)

DOBBS: Well, turning now to a few thoughts about all that has happened at the New York Exchange. The world puts its stock in the New York Exchange. It's a venerable institution. It is one that has been rocked this week by the resignation of its longtime chairman Dick Grasso.

But the changes are only beginning and, in my judgment, the changes will be far more profound than simply Grasso's resignation. It is now clear that many of those on the Exchange's board of directors don't understand that openness and transparency must be the watch words for all markets and for all companies represented in those markets.

And after two years of corporate and Wall Street scandals, that's not only inexcusable, it is simply mind-boggling that it has been ignored.

This board of directors simply has to be replaced, and it has to be replaced with men and women who fully, completely, understand the need for the highest standards of governance. And watch, if you would, the events of the coming weeks, because the specialist system at the Big Board that interposes specialist firms between buyers and sellers will be challenged and challenged vigorously as, in my opinion, it should be.

And the Exchange will make every effort to preserve the Big Board's self-regulatory role. But that must be ended. No other industry in this country regulates itself. And certainly Wall Street should not be allowed to continue its exemption from full outside regulation. I hope that SEC Chairman Bill Donaldson acts to make certain his agency takes on that role on behalf of the 85 million American investors. After all, that agency is already conveniently called the Securities and Exchange Commission.

Turning now to one of the most successful space missions ever -- it comes to an end this weekend. The Galileo spacecraft will be sent crashing into the planet Jupiter.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Three, two, one. We have ignition, and liftoff of Atlantis and the Galileo spacecraft.

(END VIDEO CLIP)

DOBBS: Galileo was launched into space in 1989. For the past eight years, this robot ship has explored Jupiter and its moons, supplying us with thousands of extraordinary pictures and data. But data doesn't capture quite the importance of all of the information. It will continue to supply that information about the vast world of Jupiter. Until it does, vaporize in Jupiter's atmosphere.

Joining me now, Charles Liu, astrophysicist with the American Museum of Natural History.

Good to have you with us.

CHARLES LIU, ASTROPHYSICIST, AMERICAN MUSEUM OF NATURAL HISTORY: Thank you for having me.

DOBBS: Galileo has been one of the most remarkable successes of NASA and of our scientific exploration of space.

LIU: Definitely.

Not everyone has heard of Galileo. But this little spacecraft that could, the size of a minivan with a flagpole attached to it, has revolutionized our understanding of giant planets and it's changed the paradigm of how we study extraterrestrial life, or the possibility of it.

DOBBS: If the decision had not been made to end its mission this weekend, how much longer do you think, Charles, it could have continued to function around Jupiter and its environments?

LIU: Somewhere between a few weeks and maybe a few months, maybe a year at most. But then what it'll happen is it starts spin out of control, its still caught in Jupiter's graft and it may crash into something that we don't want it to crash into.

DOBBS: Like one of the moons of Jupiter.

LIU: Absolutely.

DOBBS: And specifically, Europa.

LIU: Yes.

DOBBS: Why is it -- why is there such concern about -- about that possibility?

LIU: What Galileo discovered was that Europa and possibly two of the other moons of Jupiter as well, have undersea oceans. And if there's liquid water there, and there's enough warmth, and the chemicals are there, there could be life down there. An entire ecosystem shielded from outer space by dozens of miles of solid ice. If we crash something on to that thing, maybe we contaminate it forever. We just don't want to take the chance.

DOBBS: And this will end Sunday.

LIU: Yes. A little before 3:00 p.m. Eastern Time on Sunday the 21st.

DOBBS: And all of the telemetry coming back -- what will be the end signals from Galileo?

LIU: The last thing we hope to find out is that nearby structure of Jupiter. As it comes closer and closer to the atmosphere, it interacts with Jupiter's strong magnetic field, with the dust particles that make up its gossanar (ph) rings. And very possibly we'll learn something even into the last moments we didn't know before about Jupiter and giant planets.

DOBBS: Its most important discovery -- Galileo?

LIU: Definitely the idea that extraterrestrial life doesn't need an Earth-like planet. We've thought for a long time, before Galileo, that we needed to have a Goldie Locks type, not too cold, not too hot environment to sustain life as we know it. But since Galileo has found these wonderful moons that have icy surfaces and yet saltwater oceans underneath, we're now looking completely differently at the origins of life in our solar system and maybe in other solar systems, as well.

DOBBS: Well, Charles Liu, as always, it's good to talk with you. And it is good to talk about a successful space mission of this importance. And also the responsible acts of this species toward other possible species in space, perhaps once, at least, on Jupiter itself.

LIU: Shows good environmental knowledge and understanding.

DOBBS: And our environment this time is, of course, limitless, space itself.

LIU: It's wonderful.

DOBBS: Charles Liu, thank you very much.

LIU: Thank you for having me.

DOBBS: And that brings us to tonight's thought. And this thought, by the way, was tendered by none other than Charles Liu. The thought, "It asks a little of us here, it asks of us a certain height, so when at times the mob is swayed to carry praise or blame too far, we may choose something like a star to stay our minds on and be stayed." That, of course, from Robert Frost, "Choose Something Like a Star."

And that's our show for tonight. We thank you for being with us.

Monday here, we begin a series of special reports, "Exporting America." We continue our look at U.S. companies shipping American jobs overseas.

Also, Donald Marin, CEO of Lightyear Capital, on the New York Exchange Stock Exchange and its likely and best prospects. Alan Dershowitz also joins us, the author of "The Case for Israel." Please be with us.

For all of us here, have a very pleasant weekend. Good night from New York.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Rendezvous With Jupiter; Editor's Circle Discusses State Of The Economy>


Aired September 19, 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: It's still a war, but is the Pentagon looking after its own? Lisa Sylvester reports on the wounded service men and women who are asked to pay for their own food while recovering in U.S. military hospitals.
In "News Makers" tonight, the editors of "Fortune," "Forbes" and "BusinessWeek" will discuss regime change at the New York Stock Exchange, the stock market, and the gap between rich and poor.

A new twist tonight in the legal showdown over the California recall election:

And a remarkable mission to Jupiter ends this weekend -- astrophysicist Charles Liu on Galileo and its many achievements.

ANNOUNCER: This is LOU DOBBS TONIGHT for Friday, September 19. here now, Lou Dobbs.

Good evening.

Tonight, Hurricane Isabel has gone, but the scale of destruction is only now becoming clear; 17 people are dead. Nearly five million homes and businesses tonight are without power. Floodwaters swamped the centers of several towns and cities, including Baltimore. Emergency crews in Baltimore have rescued at least 400 people. There was also extensive damage to homes and businesses in Virginia.

Residents there in some areas were ordered to boil their drinking water because water treatment plants were flooded. But the worst damage is in the Outer Banks and other parts of low-lying North Carolina. Search-and-rescue teams are checking wrecked home for any casualties.

We begin our coverage tonight with Susan Candiotti in Kitty Hawk, North Carolina, one of the hardest-hit communities -- Susan.

SUSAN CANDIOTTI, CNN CORRESPONDENT: Yes, indeed.

And one of the major problems here is flooding. Here, you see a stretch of probably about a half mile or so of flooding that certainly comes up to well beyond my knee-high boots. Just over my shoulder, perhaps you can also see that some area business people have been trying to make their way to their businesses, some of them in rowboats. And you also see some traffic going by.

But the fact is, no one is supposed to be out here unless you are part of an emergency operation or -- there are not supposed to be any residents coming out here to their homes as yet because it's simply too dangerous. There are power lines down. There is no power. And authorities say they don't want any residents coming out here just yet. That is why there is a curfew that remains in effect, went into effect at noontime yesterday, and will remain in effect until at least noontime tomorrow.

Now, we had a tour of some of the damage along the oceanfront earlier this afternoon, along with the mayor of Kitty Hawk. And we saw a number of homes that had been -- had fallen into the sea, their pilings completely gone out from under them. No homeowners, or very few around there, only a handful had ridden out the storm there. And just now, we are getting some official numbers on the damage.

In Dare County, which covert Outer Banks, about $545 million worth of damage, and at least 313 of that, Hatteras Island, including Cape Hatteras. Now, that is from an aerial survey only. So they do expect those numbers could very well be much higher.

We also had a chance to talk to a man who tried to ride out the storm in his oceanfront home. And after a time, it simply got too scary and he got out of there.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I had to go up this road, which is Lindbergh (ph), and get shelter down the street, where I was still outside for approximately six or seven more hours.

CANDIOTTI: So you walked in your waders.

UNIDENTIFIED MALE: With all the debris and everything. It's by the grace of God I made it. I don't know why he wants me around. But he got me through this one.

(END VIDEO CLIP)

CANDIOTTI: He did make it through that one. But there are a lot of people who have not even had a chance to get back to their homes yet, Lou.

And, at this point, authorities tell us they don't know when they will let homeowners get back to see their homes and survey damage for themselves -- back to you.

DOBBS: Susan, thank you very much -- Susan Candiotti, reporting from flooded Kitty Hawk, North Carolina.

Tonight, 4.5 million homes and businesses are still without power after the hurricane roared through communities. Nearly two million of those are in the state of Virginia. One local power official there said, Isabel is the worst storm to have hit the area in a century. More than one million homes and businesses in Maryland also have no power tonight.

And further north, power outages are affecting parts of Pennsylvania, 700,000 people without power tonight. Utility companies all along the area have sent thousands of workers to repair power lines. Many of those workers have come from other states. They are first trying to restore power to hospitals and other emergency facilities, of course.

Baltimore is among the hardest-hit cities. The hurricane caused a surge of water that flooded large areas of the historic city center. Many people were rescued by boat.

Bill Prasad has our report -- Bill.

BILL PRASAD, CNN CORRESPONDENT: Lou, President Bush has now declared Maryland a disaster area.

Many of the folks that I have talked to this Historic Baltimore neighborhood called Fells Point say this is the worst storm they've seen in decades. And in a couple of hours, those folks, the rest of the folks in Maryland, Virginia and D.C., many of them, will be in the dark.

(BEGIN VIDEOTAPE)

PRASAD (voice-over): Emergency workers float door-to-door helping people who are stranded in their homes. Water as deep as seven feet in some places buries cars and floods businesses. The combination of high winds and Friday's high tide turned streets into rivers.

And, at one point, more than 600,000 people in Baltimore and its surrounding counties were without power.

MARTIN O'MALLEY, MAYOR OF BALTIMORE: Well, it's certainly deeper than any of the pictures that we saw from years past. Lucky me, I get the world's biggest snowfall and Baltimore's biggest flood. Next will come the plague of locusts.

PRASAD: In Virginia, Isabel turned off the juice to seven out of every 10 residents. Utility officials call the damage to the system catastrophic in some places, saying many residents will be without power for an extended period.

GOV. MARK WARNER (D), VIRGINIA: I think the government has done all it can to pre-prepare. The utilities had made sure that they briefed us of their contingency plans. They said they were ready. Now they have got -- the utility companies have to got to carry out those plans and get this power restored.

PRASAD: In Alexandria, Virginia, the Potomac River overflows its banks, creeping into the downtown, flooding businesses and depositing debris in streets.

In Washington, the federal government is shut down for the second day. The city of trees becomes the city of fallen trees, as branches and bark litter many streets. D.C.'s mayor urges many residents to start the cleanup. ANTHONY WILLIAMS, MAYOR OF WASHINGTON, D.C.: I want to urge all of our residents, yes, to stay put, if at all possible. But if you don't have any public safety issues in your neighborhood, get out and about. Begin the cleanup there.

(END VIDEOTAPE)

PRASAD: Here in Baltimore, the cleanup process has been going on for hours. In some cases, the fire department has pulled up and tried to help some folks drain the large amounts of water that are in their basements. This will be a long process. And later, it will probably have to be done by candlelight.

We are live in Baltimore, Maryland, tonight. I'm Bill Prasad -- Lou, back to you.

DOBBS: Bill, thank you very much.

Hurricane Isabel, what was Hurricane Isabel, has now been downgraded to a tropical depression. Tonight, the system is heading into Canada. People in this country who faced the full fury of Isabel today counted the cost of damage and some blessings.

These are some of their stories.

(BEGIN VIDEOTAPE)

ROBIN MOGK, VIRGINIA BEACH RESIDENT: We haven't been able to go back. I did call my neighbor about 6:00 yesterday. And they told me the siding on the house had come off, but the trees around it were still up. But I know my neighbors' trees came down and broke swing sets and pools and stuff. There was still a lot of winds and stuff last night. So I'm still a liberal nervous so see what I've got when I get home.

MEYERA OBERNDORF, MAYOR OF VIRGINIA BEACH: When I got back there, in the middle of the night, I could not believe it was my home. So we're going to be digging out and cleaning up for a good while.

UNIDENTIFIED FEMALE: The next door neighbor's tree just uprooted and fell and went into our house.

UNIDENTIFIED MALE: Everybody's just real lucky. Nobody got killed and nobody got seriously hurt. There's a lot of property damage, a lot of property damage. But they're all good neighbors. We'll all chip in and get everybody back on their feet.

BOBBY CHAMPION, NORTH CAROLINA RESIDENT: As you can see, the Outer Banks, it's got two sections of it missing down there. I understand the Kitty Hawk pier has also got sections moving. But major devastation. The Wilbon (ph) motel down there is completely demolished.

ELLEN VON KARAJAN, SOCIETY FOR THE PRESERVATION OF FEDERAL HILL & FELLS POINT: We are under several feet of water. Even as I speak to you now, people are canoeing down our side streets and our alley streets, kayaking. It's a very, very, very bad flood here. And it happened so quickly.

I think that was the thing that really caught us by surprise, because this was just, at least so far for us, the storm of the century.

(END VIDEOTAPE)

DOBBS: And tonight's quote speaks to the character and the will of the people of Virginia Beach and in fact the people in communities that were in path of Hurricane Isabel: "We have this wonderful spirit. When the sun comes out, we can tackle anything" -- that from Virginia Beach Mayor Meyera Oberndorf.

Still ahead here: two explosions in Iraq today, a dramatic surrender. Walt Rodgers will have the latest for us from Baghdad.

And American troops wounded in action pay a tremendous price to serve their country. But, unbelievably, the U.S. government wants them to pay more. Lisa Sylvester will have the report on this important story that will be disturbing to all Americans.

And in our "News Makers" segment tonight: why the New York Stock Exchange may be headed for radical change. We'll talk about that and more with editors of the nation's top business magazines.

Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Still ahead: An eight-year mission in space is scheduled to end this weekend. Astrophysicist Charles Liu joins us to talk about all the Galileo has accomplished.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Baghdad rocked by two explosions tonight, one of them a roadside bomb that authorities say blew up prematurely. Only minor wounds were reported in that explosion. The blast came only hours after one of Saddam Hussein's former top advisers surrendered to U.S. forces.

Walter Rodgers reports from Baghdad.

(BEGIN VIDEOTAPE)

WALTER RODGERS, CNN CORRESPONDENT (voice-over): Former Iraqi Defense Minister Sultan Hashim Ahmad agreed to surrender to the United States after a week of negotiations, according to an Iraqi human rights mediator. He was No. 27 on the U.S. most-wanted list. A coalition spokesman was quick to crow about the latest U.S. catch.

DAN SENOR, COALITION SPOKESMAN: I think all of them are helpful. I think all of them have basically had the sort of total communicative effect of demonstrating to the Iraqi people that the curtain is closing on their past, that the worst days are over.

RODGERS: General Hashim Ahmad was the Iraqi official who signed the cease-fire on behalf of Saddam Hussein after the first Gulf War. Befitting his rank and as part of the terms of his surrender, he apparently got an agreement he would be treated better than much of the rest of Saddam's government.

COL. JOE ANDERSON, U.S. ARMY: His surrender would guarantee that he will be treated with dignity and respect and be allowed the opportunity to explain his former situation.

RODGERS: Because the general surrendered, U.S. forces were at least spared an assault on his home that might have resulted in casualties among his family and also U.S. troops. An ambush of U.S. soldiers Thursday evening claimed three American lives. Two soldiers were wounded.

LT. COL. GEORGE KRIVO, U.S. ARMY: We have seen the tactics change from close-in encounters with RPGs and more small arms to encounters that are more apt to use mortars and improvised explosive devices, which tend to be more of a standoff sort of weapon.

RODGERS (on camera): With the attacks on U.S. soldiers now a daily occurrence, U.S. officials say they hope the surrender of General Hashim Ahmad may discourage some future ambushes.

Walter Rodgers, CNN, Baghdad.

(END VIDEOTAPE)

DOBBS: We report each night the service men and women killed in Iraq. Tonight, because it is very important, we know to you, we will also be reporting the number of wounded in action. As of tonight, 301 American service men and women have been killed since the beginning of the war against Saddam Hussein last March; 1,272 others have been wounded in action.

As we reported, hundreds of American troops have been wounded in Iraq. That is a severe price to pay. But, apparently, it is not enough. The federal government pays for most of the treatment of our wounded troops. But, incredibly, the government also requires wounded service men and women to contribute to the cost of their hospital stays.

Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Wounded service members spend weeks or months recovering from their injuries. But when they leave the hospital, they are required to reimburse government for their meals.

Bill Murwin was wounded in Iraq, his left foot partially amputated. BILL MURWIN, MARINE RESERVIST: My father-in-law said -- and I don't remember saying it, but my father-in-law said that I told him, I'm having to pay for getting shot. And I wasn't shot. I was hit with a grenade, but it's the same significance, you know? I'm paying for getting injured.

SYLVESTER: By law, the Pentagon is required to ask service members to pay the government back for the basic food allowance of $8.10 a day.

The rationale is that service members are double-dipping, getting both the allowance and the hospital food. Murwin's food bill while he was at the Bethesda Naval Hospital was $210. He says high-ranking officers may be able to pay for their food, but younger service members, who make a lot less, may not be able to.

MURWIN: I was only in Bethesda for a month. But there were Marines there that had been there since the second day of the war. So we're looking at three months. And that's an incredible bill on the back end.

SYLVESTER: After Murwin sent his check to the military, he found out Congressman Bill Young had already paid for the charges. Young is lobbying to change the law.

REP. BILL YOUNG (R), FLORIDA: It's insulting to the soldier. He loses a leg or he loses an arm or loses an eye, whatever, he's in the hospital because of his combat wounds, and when he leaves, he's charged $8.10 a day for the food that he consumed. That's an outrage. I can't find anybody that thinks it's a good idea.

(END VIDEOTAPE)

SYLVESTER: The irony is that it costs the government a lot more to try to recoup the fees than it does to just wave waive the section of the law -- Lou.

DOBBS: This idea, whose was it?

SYLVESTER: Nobody wants to take credit for this. This was actually...

DOBBS: I would have guessed that.

SYLVESTER: ... an amendment from 1981. But since 1981, they have apparently been asking service members to pay up for this.

DOBBS: Well, hopefully, it will be changed, and changed quickly.

Lisa, thank you very much -- Lisa Sylvester reporting from Washington.

Coming up next here: the story of a remarkable soldier who fought in Iraq. Hilario Bermanis (ph) lost two legs and a hand fighting for this country. He wasn't a citizen then, but he is now. Casey Wian will have his story in our feature, "Heroes." What will the New York Stock Exchange do for new leadership? Christine Romans will report on the latest in the search for a replacement for Dick Grasso.

And we'll tell you how Bob Nardelli turned a career defeat into a triumph at Home Depot, as we continue our look at "Extraordinary Careers."

Stay with us.

(COMMERCIAL BREAK)

DOBBS: A new twist tonight in the tangled California recall.

The federal appellate court that postponed that election told said it will reconsider that decision to postpone it. The 9th U.S. Circuit Court of Appeals has appointed an 11-judge panel to review the decision of three other judges. They decided to postpone the October 7 election, ruling that voting machines in six California counties must be modernized. No word tonight of when we'll find out what the final answer from the court will be and when the recall election will actually take place.

And turning to our poll question of the evening, the 2004 presidential race, our question tonight: Do you think 10 candidates for the Democratic presidential nomination, are they too many, just right, or not enough? Please cast your vote at CNN.com/Lou. We'll have the results later in the show.

On Wall Street today, minor losses didn't keep the Dow and the S&P from scoring their best week's performance in almost four months. On the day, the Dow down 14 points, the Nasdaq down 4, the S&P down 3. And the board of the New York Stock Exchange today held its first meeting on its future without former chairman Richard Grasso.

Christine Romans is here with the latest for us -- Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: And, Lou, the first order of business is to find a new leader for the New York Stock Exchange.

Several potential replacements for Dick Grasso have declined. The board was forced to appoint a search committee at its board meeting told. Larry Fink of BlackRock Group will lead it, this as the structure of the board and the exchange appears up for grabs.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): Director Henry Paulson, Goldman Sachs' CEO, proposed keeping NYSE-listed companies and the brokerage firms off the NYSE board of directors, an attempt to quiet concerns that they have a conflict, sitting on the board of the exchange while being regulated by it, and perhaps to quiet critics who think the exchange shouldn't be allowed to regulate itself at all.

NELL MINOW, EDITOR, "THE CORPORATE LIBRARY": We don't let manufacturers decide how much pollution they're going to emit into the air and water. We don't let drug manufacturers decide when drugs are safe. The government plays a role there.

SYLVESTER: In a report called "Can't Put Humpty-Dumpty Together Again," analyst Charlotte Chamberlain said NYSE's self-regulatory status is threatened. And she says, Grasso's resignation puts the equity auction system at the exchange at risk.

Scholar Jeremy Siegel calls the entire specialist system anachronistic.

JEREMY SIEGEL, WHARTON SCHOOL OF BUSINESS: It seems like the rest of the world is moving towards electronic trading. And I think that that ultimately is going to be the cheapest way that most investors can trade.

(END VIDEOTAPE)

ROMANS: Now, Lou, specialists say they have heard the death knell of their industry many times before. They say they'll continue on with or without Dick Grasso.

It is interesting, though. Henry Paulson of Goldman Sachs only a few years ago was saying that all-electronics trading sounded like a pretty good thing. And now Goldman Sachs actually own specialists. So some interesting times there. In the meantime, Bob Britz and Kinney are running the New York Stock Exchange day-to-day. And all the board members who were previously there are still there on the board.

DOBBS: And the search committee, amongst those, Gerald Levin, the former CEO of AOL Time Warner?

ROMANS: Absolutely, Madeleine Albright as well. Mel Karmazin, who said that he voted to keep Dick Grasso as well. Some of the members, Lou, have been telling me the last couple of days that they asked Carl McCall for an apology from the members who voted to keep dick Grasso and want to know why they are still on the board.

DOBBS: It's beginning to look like an apology won't quite cover the necessary changes at the Big Board.

Christine, thanks -- Christine Romans.

Coming up next: Dick Grasso's past, the New York Stock Exchange exchange's future. We'll be hearing from the editors of "BusinessWeek," "Fortune" and "Forbes."

We'll also tell you about a surprising career turnaround. It's more than a story about business. It's a story about how to deal with setbacks in life.

And the remarkable story of a soldier who paid a very high price to fight for this country in Iraq, even though he wasn't a U.S. citizen, his story in our feature, "Heroes."

Stay with us.

(COMMERCIAL BREAK)

DOBBS: For more on this remarkable week, I'm joined now by the heads of three leading magazines in our weekly feature, "News Makers," Mark Morrison, the managing editor of "Business Week," Rik Kirkland, the managing editor of "Fortune," Tim Ferguson, the executive editor at "Forbes."

Gentlemen, good to have you with us.

Dick Grasso is gone. The exchange seems to be scrambling. What do you think happens from here, Mark?

MARK MORRISON, MANAGING EDITOR, "BUSINESSWEEK": They're having a hard time finding someone who wants to take the job. It's a very difficult job right now. And it's very important that they get someone with credibility.

My idea is, go outside of these Wall Street names that they're talking about. Get someone like Jack Welch or Larry Bossidy, more of a CEO type, to go in and really go through the place and think how this thing should be restructured.

DOBBS: You think those fellows or someone of their like stature would have an appetite for this, Rik?

RIK KIRKLAND, MANAGING EDITOR, "FORTUNE": I don't know. The old pay scale would appeal to them.

(LAUGHTER)

KIRKLAND: I'm not sure the new one will.

DOBBS: It would be a pay increase for quite a few CEOs in the country.

KIRKLAND: Exactly. It's possible.

But there's other issues beside someone to fill Dick's shoes. I think we've got huge questions about, again, the structure of the exchange, as you were saying earlier. You've got to split off the regulatory function, I think. We're all waiting to see what Donaldson has to play about this. He's going to play an influential role. So it's very much a moving target. And they clearly were not ready for any of this.

DOBBS: Well, right now, this has created -- the resignation of Grasso has not ended the questions. In fact, it has accelerated and raised the number of questions, Tim. What's next, in your view?

TIM FERGUSON, EXECUTIVE EDITOR, "FORBES": It absolutely has. I think the Big Board belongs in public ownership, like a number of the major exchanges around the world. And I think that would help to deal with questions of structure, of regulation and of pay in governance.

DOBBS: And the specialist system itself, in which specialists firms are interposed between buyers and sellers, it is likely, it seems to me, to come under severe attack. What do you think?

MORRISON: Yes, it's going to come under severe attack. I think I would like to see it survive in some way, with more transparency.

There's a question whether it can be do that with complete transparency, whether it can survive. But I think, as part of a competitive marketplace, it's a nice thing to have. It does create some liquidity. These are risk-takers there on the floor who take positions. And it helps the market work.

DOBBS: And they're handsomely-paid risk-takers.

KIRKLAND: Yes, the risk may be there, but they seem to make a pretty good profit on it, which is an argument, I would say, for -- I don't think it's the biggest problem in the world to have this specialist system. But if it changes or it goes away, I don't think it will really hurt us. This happened in Europe some years ago. And there's loads of other markets that don't have them. I'm not sure they're essential.

DOBBS: Despite everything this week, the turmoil at the New York exchange,the S&P 500, the Dow Jones industrials posting the best performance in 3 1/2 months, Tim. Is this is a sustainable bull market now?

FERGUSON: It would appear. We're still waiting, of course...

DOBBS: He said with...

(LAUGHTER)

FERGUSON: The proverbial other shoe to drop. The effect on the consumer spending of the continued lag in the employment numbers, at least official employment numbers. But there is even in that quarter some indication of strength in some of the unofficial employment numbers, some of the online agencies and such that are showing some strength.

MORRISON: The economy continues to have some much going for it. Now you have the added impetus of lowering oil prices. They seem to finally be falling, as we thought they would right after the Iraq invasion.

DOBBS: Just a couple of months ago, Allen Greenspan, the chairman of the Federal Reserve, was talking about his great concerns about natural gas prices. They have also fallen. As we look at this economy, you have to wonder where the problem is, except in the area of jobs.

KIRKLAND: There's another area which I think is that, and this is more long term, the U.S. is still dragging the rest of the world along in recovery. If the U.S. falters or if does get overheated, which some are concerned about, then Europe and Asia don't know how to grow without us growing.

MORRISON: It starting to get help from Japan is growing at the moment. We'll see if that is sustainable. China's certainly growing even at a faster rate than was thought. So, there's some engines starting to go out there.

KIRKLAND: It feels like a good spot right now.

DOBBS: Let's talk politics very quickly. California recall on again/off again, circuit court of appeals, 9th circuit there, what do you expect to happen, Tim?

FERGUSON: It's a little legal game. I remember this from January 2001, was that it? December 2000, maybe that's when it got settled. Same game, just different players.

DOBBS: And we have been speaking of players, there's Al Gore up on the screen, coming to the aid and rescue of embattled Governor Gray Davis and General Wesley Clark joining a crowded field of Democratic candidates for the nomination. How is this looking to you? Does Wesley Clark have a viable candidacy? The Clintons both supporting him. What of you make of it?

MORRISON: Well, it's going to be a good year for journalism, I think. We have a lot of exciting candidates in the race. He's particularly interesting. I don't think the White House is eager for him to make it on to the ticket.

KIRKLAND: He's very attractive. He's going to learn the game quickly. He's already gotten in trouble for being candid in interviews which is not something that's valued in Washington. He's going to have to learn how to present, oil it down. He's a very smart guy. I think he's shaking up the race.

DOBBS: Are there any of these ten, Rik, we consider done? If we're going to segregate it?

KIRKLAND: I don't want to name names. On an I.Q. score, there may be a few below him.

DOBBS: Well that seems to be a national sport to decide which political candidate is smartest. The current president seems to have overcome those concerns, suggestions.

FERGUSON: I think you need to moderate a debate of ten, Lou.

DOBBS: A debate of ten. I think that would be fascinating. I'm sure the information imparted in that would be immensely valuable to voters all over the country. I think it going to need a little whittling down. How much trouble to you think, Tim, President Bush is in? We're seeing some numbers fall, how significant?

FERGUSON: If the U.S. economy is growing at 5 percent a year by early next year, I think he can survive several falls in Iraq.

KIRKLAND: He's going to be a strong candidate. We'll have to see. We'll have to see who runs against him, see what the economy looks like. MORRISON: I agree with that. But I think the Democrats' best chance is come forth with someone like Clark who can appeal to swing voters in the middle. This is a guy who voted for Reagan and Nixon.

FERGUSON: He thinks he voted for Nixon, he's not sure.

DOBBS: He thinks.

Within that context, Iraq, you mentioned as one of the issues. Where's American business in Iraq? Why isn't American business stepping in, showing what it can do in Iraq? Where is Bechtel? Where is the driving engine that can show, not only Iraqis, but all of the Middle East, the world, what can be accomplished in building infrastructure and getting it done?

MORRISON: I think it will happen. It's just I think they're waiting for things to clarify themselves over there, to settle down. For the security to be nailed down. Then, I think, they'll be there.

KIRKLAND: Exactly. You know, we need to not be losing four, five, six soldiers a day.

MORRISON: When the $87 billion starts flowing into the situation, they will definitely be there.

DOBBS: Tim?

FERGUSON: One would hope, although there's a -- it's probably an even higher risk premium than you face with the trial lawyers in the United States.

DOBBS: Significant risk premium, unfortunately. Tim, thank you very much. Rik, Mark, we thank you.

Still ahead here, I'll be sharing my thoughts on what other changes are needed at the New York Stock Exchange now that Dick Grasso is gone.

Also, extraordinary careers, the inspirational store story of a man who had to redefine his career after 30 years. The author of the "5 Patterns of Extraordinary Careers" James Citrin joins us.

And mission accomplished. One of NASA's most successful space probes prepares for its final encounter with the planet Jupiter. Astrophysicist Charles Liu joins me. We'll be talking about Galileo.

That, a great deal more still ahead. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Success can sometimes be defined in part by how a person deals with defeat. In an extraordinary career, Bob Nardelli was denied the chance to run the largest company in the world, so he took his skills, learned while working at GE, applied them to a struggling retail somewhere built not only a successful turn around but continued a very successful career. (BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: I might have something down here for you.

UNIDENTIFIED FEMALE: $9.32.

DOBBS (voice-over): When Bob Nardelli took over as CEO of Home Depot he never worked in retail.

UNIDENTIFIED MALE: We have a lifetime service warranty on this product.

DOBBS: So, he went on a tour. Seven stores, seven cities, seven days.

BOB NARDELLI, CEO HOME DEPOT: My job was sort out those things that we really wanted to covet. The things that we wanted to build into the future. And how do we do that in a consistent manner?

How about that? Bravo. Bravo.

DOBBS: Nardelli knows about meeting goals. He did, after all, spend 30 years working for Jack Welch at General Electric. But Welch passed him up for the top job at GE and Nardelli wasted no time moving on. He was CEO of Home Depot a week later.

NARDELLI: To say you were not disappointed would be a misrepresentation. You know, it's what you trained for. Look, you train to lead a company. You develop your skills. You hone your skills to be able to provide the leadership.

UNIDENTIFIED MALE: How are you?

DOBBS: And it was the first change in leadership at Home Depot in the company's 22-year history as CEO and co-founder Bernie Marcus stepped aside and put Nardelli in charge.

Within Home Depot there was concern Nardelli would try to GE-ize the company and its culture.

NARDELLI: It would have been a huge mistake to come in and start using sic sigma (ph) jargon. The associated may have thought I was talking in tongue. The important thing was to bring the process, to bring the tools and the methodology to go through problem solving.

They can control, you know, merchandising.

DOBBS: Deals with suppliers were renegotiated and centralized.

NARDELLI: If you can imagine at least 16 separate buying offices a supplier would have to convince the head of each department in each buying office. So just the logistics of that.

We can clean this up quickly.

DOBBS: The reporting structure was also streamlined. NARDELLI: We did a lot of delayering. We spread the organization out. Now we're bringing it back in a very constructive manner.

DOBBS: There was a new commitment to refurbishing stores. Paint centers were introduced.

NARDELLI: It was the fastest reset ever done in the history of the company. We did every store in 90 days. The most innovative set...

DOBBS: Space was cleared to sell bigger ticket items.

NARDELLI: We were kind of locked into a thought if you can't sell it out of a rack you won't sell it. Well, the fact is, we weren't selling it. Today we have gone from zero to third in the market in the appliance business.

The ability to bring into our stores...

DOBBS: And exclusive contracts were signed with popular vendors.

NARDELLI: We'll sell over 200,000 John Deere tractors. First year, average ticket of $2,000.

DOBBS: Those changes have yielded results, a new store opening every 43 hours.

UNIDENTIFIED FEMALE: Thank you.

DOBBS: New stores mean new jobs, and lots of them. Home Depot will hire 40,000 people this year, as it has every year since Nardelli arrived.

NARDELLI: I need a head cashier, if you could just ask her a second.

DOBBS: A success sharing plan pays out $16 million in cash to hourly employees who reach annual sales goals.

UNIDENTIFIED FEMALE: And it's not going anywhere on you.

DOBBS: Nineteen million hours a year are spent on employee training.

UNIDENTIFIED MALE: Change the chandelier?

UNIDENTIFIED FEMALE: Yes.

DOBBS: Those same employees put in 7 million hours of volunteer service in their communities.

(END VIDEOTAPE)

DOBBS: Nardelli has achieved all of those changes at Home Depot in three short years. Joining me now, James Citrin, the author of "The 5 Patterns of Extraordinary Careers."

Jim Nardelli's story is fascinating. He didn't miss a beat, literally when Jack Welch said, "You're not the guy."

JAMES CITRIN, AUTHOR, "5 PATTERNS OF EXTRAORDINARY CAREERS": A week later, he went to Home Depot and what's so great about Bob and Home Depot -- for now it's all about home depot. He's excelling and he's hitting on all cylinders.

DOBBS: Now, as one who's interested in the legends of business, Jack Welch tells the story of flying in on Sunday to tell everybody what the decision was and no one knew what was happening and Jeffrey Enmalti (ph) told -- all at the same time? Nardelli ends up with a new job as CEO in one week. That's a pretty quick turnaround, by any standard.

CITRIN: That is the quickest in history.

DOBBS: So you think there might have been some indication?

CITRIN: Well, no. But here's key thing. It is -- Home Depot is a really important company, and that is incredibly important to Nardelli. The company is adding $60 billion or plus into the economy. It's training 300,000 employees in the country on an annual basis with these...

DOBBS: He's over the -- he's over the GE.

CITRIN: Oh, he is completely....

(CROSSTLAK)

CITRIN: It's amazing.

DOBBS: He's quite a guy.

And let's -- you know, one of the thing that we've done this week, because it's an extraordinary series about some extraordinary people this week -- and we thank you for that.

Let's take a look at the poll results, when we asked our viewers are you satisfied with your career or how satisfied you might be. If we could put those results up there. There they are. Very -- if you look at those -- very 31 percent; somewhat 32 percent; not at all, 37 percent.

Now I think that's pretty good, 63 percent. But, you know, your heart kind of reaches out to that 37 percent who haven't been able to find something they love.

CITRIN: But. you know, our research actually showed a little bit more pessimistic than this. But the point is that there's an optimistic message in there. Only a third of the people are truly satisfied with their careers. But our research found that the "The 5 Patterns of Extraordinary Careers," if they're followed, they can really help people be both successful and satisfied.

DOBBS: Now you sound like a book author, Jim Citrin.

CITRIN: Well...

DOBBS: The -- you said more pessimistic. Compare your findings versus those.

CITRIN: Only 9 percent of the American professionals that we surveyed are truly passionate about and feel like they're leveraging their strengths in their careers.

DOBBS: Our -- this is a real tribute to our audience. You're in better company than you usually attend to.

CITRIN: That's true.

The goal, though, is to move that third up to 90 percent and let people really be happy about their...

DOBBS: Well, let's talk about that 37 percent. And let's put up those five patterns and these qualities -- if you could just --

Understand the value of you.

CITRIN: This is how careers really work. And understanding that is a key.

Two is how you work with people, making those around you successful. And Bob Nardelli -- we didn't get a chance to tell the whole story -- he has made that company successful with the people.

DOBBS: I think in fairness, we should say, Bernie Marcus (ph) and Ken (UNINTELLIGIBLE) started it.

(CROSSTALK)

CITRIN: Oh, they were legends and they built a great company. But it's doing better than it ever has before.

DOBBS: Benevolent leadership.

CITRIN: That is, focus on those successful around you more than your own success.

DOBBS: Permission paradox?

CITRIN: Find creative and effective ways to get access to the opportunities that you really want.

DOBBS: And positive differentiation.

CITRIN: Don't just do what people tell you to do. Do your jobs well, but then find innovative ways to add value.

DOBBS: And even -- the right fit, even I can figure out. CITRIN: Find the right fit.

DOBBS: It's also one of the toughest, isn't it?

CITRIN: It's -- it is tough. But you know what? If you know that that's a key, migrate over time and to those things that you do well, you work with people that you like and respect, and that you're really happy and hitting on cylinders.

DOBBS: Well, I know you have achieved that. I've been fortunate enough to. We hope everyone listening to you and watching you tonight will have the same -- the same happy result. We thank you for being here this week. It's an extraordinary look at extraordinary people who have been able to achieve success and satisfaction in their lives. And we thank you, Jim.

We also want to thank Philippa Holland, the producer of this remarkable series. She did an outstanding job, and our congratulations to her.

A reminder to vote in tonight's poll on the upcoming presidential race: "Do you think 10 candidates for the Democratic presidential nomination are too many, just right or not enough?" Cast your vote at cnn.com/lou. We'll have the results coming up for you later in the show.

But coming up next. the story of a true American hero. He fought in Iraq for this country though he wasn't a citizen. He paid a heavy price for his bravery. Army specialist Hilario Bermanis tonight in "Heroes."

(COMMERCIAL BREAK)

DOBBS: We turn now to "Heroes," our weekly look at service men and women who have fought in Iraq, who have returned home to face new and oftentimes very tough challenges.

One of the nearly ,300 soldiers wounded in Iraq is army specialist Hilario Bermanis. During his deployment in Iraq, he and another soldier were attacked by rocket-launched grenades. The other soldier lost his life. Specialist Bermanis lost three of his limbs.

Casey Wian has his story.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNNfn CORRESPONDENT (voice-over): Army specialist Hilario Bermanis is fulfilling a life long dream -- becoming an American citizen.

HILARIO BERMANIS SNR., FATHER: Ever since he was a kid, he's been wanting to be a U.S. citizen.

WIAN: Three times the 21-year-old nearly lost his life in service to his adopted country, once in combat in Iraq and twice because of his war wounds. Bermanis grew up in Micronesia, a South Pacific island nation his family still calls home. But America, the U.S. Army and a chance for a better education lured him away.

HILARIO BERMANIS SNR.: Didn't have enough money to put him through college. That was a great opportunity for him and I encouraged him. He wanted that. I encouraged him.

WIAN: Now Bermanis is adjusting to a new life without his legs and part of an arm.

ANTHONY PRINCIPI, VETERANS AFFAIRS SECY.: When I first met him, he was very depressed, and I wasn't sure whether he was going to come around. But I think in the intervening past weeks, as the army has worked with him and people from my department have worked with him, he has begun to get involved in physical rehabilitation. So he's come a long way.

WIAN: Still, he isn't ready to talk about his experience. But becoming an American citizen puts a smile on this soldier's face.

HILARIO BERMANIS JR., WOUNDED IN IRAQ: So help me God.

UNIDENTIFIED MALE: Congratulations. You're a citizen of the United States.

WIAN: Bermanis still hopes to pursue the education he always wanted,. But his family wants him back home, where he would face new challenges.

PETER CHRISTIAN, SPEAKER OF CONGRESS, FEDERATED STATES OF MICRONESIA: The mobility that he has today would be difficult. Not all of the roads are paved. There are no sidewalks. To earn a living or to make a living normally entails fishing, climbing a tree and doing chores that would require a complete possession of limbs.

WIAN: Either way, Bermanis faces months of rehabilitation, fittings for prosthetics and an uncertain future.

PRINCIPI: I salute you and I thank you and I stand with everyone at the Department of Veterans Affairs prepared to assist your return to civilian life.

WIAN: It's only appropriate, because Bermanis and nearly 1,300 other wounded Iraq war veterans have been there for America.

Casey Wian, CNN, reporting.

(END VIDEOTAPE)

DOBBS: A remarkable story about a man we are proud to call a fellow American.

Please stay with us.

(COMMERCIAL BREAK) DOBBS: The results of tonight's poll. The question, "Do you think 10 candidates for the Democratic presidential nomination are too many, just right or not enough?" Fifty percent of you say too many; 30 percent -- 36 percent, rather, say just right; 14 percent would like to see one or two more, apparently.

(LAUGHTER)

DOBBS: Well, turning now to a few thoughts about all that has happened at the New York Exchange. The world puts its stock in the New York Exchange. It's a venerable institution. It is one that has been rocked this week by the resignation of its longtime chairman Dick Grasso.

But the changes are only beginning and, in my judgment, the changes will be far more profound than simply Grasso's resignation. It is now clear that many of those on the Exchange's board of directors don't understand that openness and transparency must be the watch words for all markets and for all companies represented in those markets.

And after two years of corporate and Wall Street scandals, that's not only inexcusable, it is simply mind-boggling that it has been ignored.

This board of directors simply has to be replaced, and it has to be replaced with men and women who fully, completely, understand the need for the highest standards of governance. And watch, if you would, the events of the coming weeks, because the specialist system at the Big Board that interposes specialist firms between buyers and sellers will be challenged and challenged vigorously as, in my opinion, it should be.

And the Exchange will make every effort to preserve the Big Board's self-regulatory role. But that must be ended. No other industry in this country regulates itself. And certainly Wall Street should not be allowed to continue its exemption from full outside regulation. I hope that SEC Chairman Bill Donaldson acts to make certain his agency takes on that role on behalf of the 85 million American investors. After all, that agency is already conveniently called the Securities and Exchange Commission.

Turning now to one of the most successful space missions ever -- it comes to an end this weekend. The Galileo spacecraft will be sent crashing into the planet Jupiter.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Three, two, one. We have ignition, and liftoff of Atlantis and the Galileo spacecraft.

(END VIDEO CLIP)

DOBBS: Galileo was launched into space in 1989. For the past eight years, this robot ship has explored Jupiter and its moons, supplying us with thousands of extraordinary pictures and data. But data doesn't capture quite the importance of all of the information. It will continue to supply that information about the vast world of Jupiter. Until it does, vaporize in Jupiter's atmosphere.

Joining me now, Charles Liu, astrophysicist with the American Museum of Natural History.

Good to have you with us.

CHARLES LIU, ASTROPHYSICIST, AMERICAN MUSEUM OF NATURAL HISTORY: Thank you for having me.

DOBBS: Galileo has been one of the most remarkable successes of NASA and of our scientific exploration of space.

LIU: Definitely.

Not everyone has heard of Galileo. But this little spacecraft that could, the size of a minivan with a flagpole attached to it, has revolutionized our understanding of giant planets and it's changed the paradigm of how we study extraterrestrial life, or the possibility of it.

DOBBS: If the decision had not been made to end its mission this weekend, how much longer do you think, Charles, it could have continued to function around Jupiter and its environments?

LIU: Somewhere between a few weeks and maybe a few months, maybe a year at most. But then what it'll happen is it starts spin out of control, its still caught in Jupiter's graft and it may crash into something that we don't want it to crash into.

DOBBS: Like one of the moons of Jupiter.

LIU: Absolutely.

DOBBS: And specifically, Europa.

LIU: Yes.

DOBBS: Why is it -- why is there such concern about -- about that possibility?

LIU: What Galileo discovered was that Europa and possibly two of the other moons of Jupiter as well, have undersea oceans. And if there's liquid water there, and there's enough warmth, and the chemicals are there, there could be life down there. An entire ecosystem shielded from outer space by dozens of miles of solid ice. If we crash something on to that thing, maybe we contaminate it forever. We just don't want to take the chance.

DOBBS: And this will end Sunday.

LIU: Yes. A little before 3:00 p.m. Eastern Time on Sunday the 21st.

DOBBS: And all of the telemetry coming back -- what will be the end signals from Galileo?

LIU: The last thing we hope to find out is that nearby structure of Jupiter. As it comes closer and closer to the atmosphere, it interacts with Jupiter's strong magnetic field, with the dust particles that make up its gossanar (ph) rings. And very possibly we'll learn something even into the last moments we didn't know before about Jupiter and giant planets.

DOBBS: Its most important discovery -- Galileo?

LIU: Definitely the idea that extraterrestrial life doesn't need an Earth-like planet. We've thought for a long time, before Galileo, that we needed to have a Goldie Locks type, not too cold, not too hot environment to sustain life as we know it. But since Galileo has found these wonderful moons that have icy surfaces and yet saltwater oceans underneath, we're now looking completely differently at the origins of life in our solar system and maybe in other solar systems, as well.

DOBBS: Well, Charles Liu, as always, it's good to talk with you. And it is good to talk about a successful space mission of this importance. And also the responsible acts of this species toward other possible species in space, perhaps once, at least, on Jupiter itself.

LIU: Shows good environmental knowledge and understanding.

DOBBS: And our environment this time is, of course, limitless, space itself.

LIU: It's wonderful.

DOBBS: Charles Liu, thank you very much.

LIU: Thank you for having me.

DOBBS: And that brings us to tonight's thought. And this thought, by the way, was tendered by none other than Charles Liu. The thought, "It asks a little of us here, it asks of us a certain height, so when at times the mob is swayed to carry praise or blame too far, we may choose something like a star to stay our minds on and be stayed." That, of course, from Robert Frost, "Choose Something Like a Star."

And that's our show for tonight. We thank you for being with us.

Monday here, we begin a series of special reports, "Exporting America." We continue our look at U.S. companies shipping American jobs overseas.

Also, Donald Marin, CEO of Lightyear Capital, on the New York Exchange Stock Exchange and its likely and best prospects. Alan Dershowitz also joins us, the author of "The Case for Israel." Please be with us.

For all of us here, have a very pleasant weekend. Good night from New York.

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