on our broadcast tonight, game change. a remarkable turnaround, a flurry of activity by congress. tonight, what it means for every american and for the president. the violent storm in the american west. dramatic rescues, dangerous mudslides and the people who refuse to leave home. the placebo effect may be more powerful than we think. what happened when patients knew the pill was fake? and "making a difference" for the children of americans in uniform. helping families make sure there's a christmas this year. "nightly news" begins now. captions paid for by nbc-universal television

good evening. you may think of congress as a do-nothing, paralyzed gridlocked legislative body unable to agree on anything. and yet, thanks to a final day frenzy of activity before leaving town for the christmas break, when it's all said and done, this congress passed more laws affecting more americans than any congress perhaps going as far back as the great society era of president johnson. and as for president obama, he seemed to be saying today, while he got shellacked in november, he came back in december. nobody got exactly what they wanted, everybody gave something. but then suddenly a torrent of legislation, for 9/11 first responders, don't ask, don't tell for the military, and the s.t.a.r.t. nuclear arms treaty. our team is in place and ready to go tonight. we'll begin in new york with savannah guthrie. savannah, at least they leave town in dramatic fashion. >> reporter: we had some cliffhangers. this ended better than the president probably expected out

of the ashes of those midterm losses. the president was able to cobble together a string of bipartisan victories in the final weeks of this congress, and just in case americans busy with the holidays might have missed it, he held a news conference today to draw attention to those accomplishments. as washington wrapped up its business for the year, the president took what amounted to a victory lap. >> i think it's fair to say that this has been the most productive post election period we've had in decades. it comes on the heels of the most productive two years that we've had in generations. >> the resolution and ratification is agreed to. >> reporter: with vice president biden presiding, the senate passed new s.t.a.r.t., the arms control treaty with russia the president had lobbied for relentlessly. in the end, 13 republicans joined democrats in passing the agreement. the president anxious to highlight another bipartisan victory, on the heels of his tax cut compromise with republicans. >> if there's any lesson to draw from these past few weeks, we are not doomed to endless

gridlock. >> reporter: today, the president also put pen to paper, signing the repeal of the ban on gays in the military. >> your country needs you and your country wants you and we will be honored to welcome you into the ranks of the finest military the world has ever known. >> reporter: but before reporters, he acknowledged he's wrestling with his own position on gay marriage. >> my baseline is a strong civil union that provides them the protections and the legal rights that married couples have, and i think that's the right thing to do. but i recognize that from their perspective it is not enough. >> reporter: speaking about the failure of the immigration initiative, the dream act, the president sympathized with children of illegal immigrants who have no path to citizenship. >> even though i feel american, i am an american, the law doesn't recognize me as an american. i'm willing to serve my country,

i'm willing to fight for this country. i want to go to college and better myself. and i'm at risk of deportation. and it is heartbreaking. that can't be who we are. >> reporter: the president said he's persistent and he will make immigration reform a priority in the coming years. one other item, that bill to provide health benefits for 9/11 first responders who became ill when they were working at ground zero. >> what a day in washington. savannah, thanks for starts us off. now to our congressional correspondent kelly o'donnell on the hill. kelly, starting with that 9/11 health and compensation bill, most americans are not used to seeing this amount of change where you are in such a short time. >> reporter: brian, it's amazing to think one day after emotional appeals from first responders, tons of media pressure and the clock ticking down toward christmas, congress did pass that 9/11 bill. it helps to pay for medical needs of survivors and workers

at ground zero who are suffering serious, even deadly illnesses. first responder john seal says he finally has peace of mind. >> to me, that's better than opening any christmas present this year, and it's because of everybody's hard work that this christmas will be the best christmas that i've never known. >> reporter: it happened because democrats and republicans negotiated really hard this morning to cut down the overall cost of the bill to $4 billion, and to tighten up some of the program's requirements. brian? >> going back, and whether you agree with the legislation or not, starting with health care, financial reform, stimulus, it has been a mountain that they have passed, though like every session, there's a mountain they leave behind. >> reporter: well, if you go back to the 1960s, that's the last time we saw a congress that could get so much done affecting so many american lives. now, democrats use their big majorities to get action on things like the economic stimulus, health care reform, financial regulatory reform. credit card reform.

remember cash for clunkers? the fair pay act for women. and then after republicans grain gained their big steam in november, they came back for the lame duck session, which turned out to be surprisingly able with gop cooperation on a number of things, like the s.t.a.r.t. treaty, the repeal of don't ask, don't tell, the tax cut extensions, and a food safety bill. and brian, in just two weeks, a new congress comes back to work here with more than 100 new members. >> kelly o'donnell on the hill tonight. kelly, thanks. as kelly indicated, both sides now, president and congress, take this holiday break. after that, they come back into town with the new congress present. so that brings us to the moderator of "meet the press," david gregory. david, first off, what happened in washington today, and how does it set up, in fact, part two of the obama presidency? >> i think the president has repositioned himself as a leader of this country, as the president. i think he quickly took a lesson from the midterms and said okay,

look, i'm going to do some deals here with the republicans on tax cuts to clear the underbrush politically to allow some negotiations and some success on don't ask, don't tell, s.t.a.r.t. and other things. the president signaling he's persistent in areas where he's wanting to get things done, might be immigration reform, education is down the pike and a fight over the budget. you heard the president say look, we're going to have to get the balance right between cutting and investing in the economy. so there's some big fights ahead. >> david gregory rounding out our coverage in washington after this big day there that ultimately affects just about every american. david, thanks. now we switch to the ongoing crisis on the west coast, and the rain totals we're about to show you are not misprints. like 25 inches in lytle creek, 21 inches in devore. this has been an incredible seven days of rain for some folks. it got worse today for others as that relentless wave of water comes off the pacific right on

shore in southern california, and then from there the problems extend to other states. roads are blocked by storm runoff and mud. tonight, the good news is that the storm system that's been doing all this damage is finally moving out to the east. our coverage of what it's leaving behind tonight beginning with our own miguel almaguer who is in orange county, california tonight. miguel, good evening. >> reporter: the west has been hammered all week, but the knockout punch may have come today. coastal cities are known for their raw beauty, but today, so many of them are simply a mess. in laguna beach, roads became rivers, heavy runoff washing away some of the main beach area. joe crash was awakened at 3:00 a.m. when a retaining wall slammed into his home. >> i am fortunate that i'm not dead. >> reporter: nearly four inches of rain overnight cut off roads with mudslides. 30 people were stranded and

eventually rescued. >> it was like the heavens opened up. >> reporter: jeremy hess helped his grandmother evacuate through a window with four feet of water in the house. >> it's like you were crawling through a river. >> reporter: nearby, residents of silverado canyon fought a losing battle against an eroding hillside. emergency evacuations were ordered in the foothill communities of los angeles. >> hello? los angeles sheriff's department. >> reporter: many refused to leave. >> huge inconvenience. huge. i'm in there wrapping gifts that we have to take to work tomorrow. >> reporter: the situation has been dicey all day long. this is where the station fire broke out back in 2009. the land here is rugged, it's loose and it's muddy. and the concern has always been for the homes nestled in the hills. >> we're not done, we're not out of the woods yet. >> reporter: a state of emergency in six southern california counties. floods shut down amtrak from l.a. to san diego. major roads closed. qualcomm stadium is a mess to

clean up for tomorrow's poinsettia bowl. 47 guests had to be rescued when water surrounded the premiere hotel. >> i was just holding onto him. so i figured he'd be okay. they're taking good care of us over there. >> reporter: for richard, there was no time to evacuate. a sinkhole cut off his neighborhood. >> it was just opening up and the water was gushing all over. >> reporter: tonight, the storm barrels east towards arizona and utah. >> i'm meteorologist chris warren in beaver dam, arizona. the extreme northwest part of the state. this community has lost six homes, ripped away by the strong waters. down the road in las vegas, flash flooding also today, getting hit very hard. just days before the christmas holiday. >> reporter: tonight, a rainbow over the san fernando valley, as many prepare to clean up over christmas. keep in mind, brian, this storm has been deadly on the roads and will cost tens of millions to

clean up. the good news, the brunt of the storm has moved on. the bad news for you folks out east, the storm is headed in your direction. >> so we hear. upwards of 20 states are supposed to get snow in the next few days. miguel, thanks for your coverage here all week. the area that l.a. officials are most worried about, the foothills of the angeles national forest, in part because that area burned in that big so-called station fire we were there to cover in 2009. with so much vegetation gone, mudslides, of course, as we've seen are the danger. more than 200 families ordered out of their homes, some have decided to stay. tammy smith is one of them. she and her husband live in flintridge. there are now concrete barriers, with christmas decorations no less, directing the mud down the hill and away from homes. tammy's been kind enough to join us tonight. tammy, i know you and your husband have spent thousands fortifying the house. you must trust everything to have stayed behind.

>> oh, we do, we do. we have done everything we can to protect our home and the structure. we started immediately after the station fire last year, and it continued all the way through to the summer. so we are well prepared. we have a great neighborhood, walkie-talkies are spread around. so there's a really good system up here, as well. >> you got through the station fire, you've gone through six evacuation orders i understand in the months since the station fire. there are folks all over the country living in either a flat land or high and dry without these concerns tonight and may be wondering why live there at the end of the day. what's been your answer to that question? >> you have issues like this anywhere you go. in the flat lands, you have tornadoes. you've got tornado alley. up here, it's beautiful. this doesn't happen all the time. you have lots of wildlife. we're close to the city and quite honestly, it's our home and it's a wonderful community up here.

so these are some of the things that bind us together and it really makes for a good quality of life, as well. >> tammy, fair enough. we wish you a pleasant holiday season the minute the rain stops and a dry but not too dry 2011. best of luck in this current crisis. >> thank you. still ahead as our broadcast continues here on a wednesday night, mind over matter. patients are knowingly given fake pills, placebos, with some incredible results. then later, a woman already making a huge sacrifice, still willing to give just a little bit more this christmas season.

we're back tonight with some fascinating new research on what we've all known as the placebo effect. it's generally thought that dummy pills, or sugar pills, work precisely because so much of it is in your head and patients don't know they're fake. tonight, results of a new study suggesting that secrecy may not have to be part of feeling

better without actual medicine. our report from our chief science correspondent robert bazell. >> reporter: diane sandborn, a nurse practitioner for her entire career, knows all about the placebo effect. still, she was surprised how much it helped her in this latest study. >> this was like a miracle to me. >> reporter: many view the placebo effect as the strongest evidence for the mind-body connection in medicine. in studies of new drugs, patients don't know whether they get the drug or a placebo, a dummy pill. often those on placebo get better. the researchers say this new study takes the placebo effect to a higher level. >> it's possible to harness the placebo effect without deceiving patients. >> reporter: researchers recruited 80 people suffering from irritable bowel syndrome, a condition affecting 10% to 15% of the population, mostly women. it's known to be brought on by stress and other psychological factors. >> the treatment options are quite limited, which makes it

very difficult for doctors to adequately treat patients. >> reporter: half the volunteers got a bottle of pills actually labeled placebo and were told to take two a day. the other half got nothing. after three weeks, 59% of those taking the placebo improved. compared to 35% of those who got nothing. the scientists believe that some people get better simply from the ritual of interacting with doctors, including getting pills. surveys showed that half of all doctors admit to sometimes giving patients a placebo without their knowledge. this research suggests placebos may have a wider application as honest treatments. >> i don't think a placebo pill will shrink a tumor, but it is likely to affect chronic pain situations, low back pain and headache. >> reporter: all that must be proved. but in some cases, a placebo might be the best medicine. robert bazell, nbc news, new york. when we come back here

tonight, the women we told you about here last night, well, they got the job done. also, remembering a man known for just a few iconic words.

♪ the lone ranger. >> hi ho silver. >> man, did that get your blood going. unforgettable words for generations of american kids who watched the "lone ranger" series on tv and listened to it on the radio long before that. that voice belonged to fred foy who, while he was working for a detroit tv station, became famous for the role and had a long and distinguished career as an announcer. fred foy died this morning in massachusetts. he was 89 years old. and with the oldest of the baby boomers now about to turn 65, a new survey conducted for aarp finds most of them are pretty content with their lives. 70% say they've achieved all or most of what they wanted in life. at the same time, a third of them have returned to work after retiring from an earlier career. 40% of them say they plan to work as long as they possibly can.

that's likely because they feel they need to financially. if you're in the market for a new car, the experts at the insurance institute are weighing in with their top picks for the 2011 model year. after crash testing almost 200 different cars a total of 66 cars and suvs got the highest safety rating. that's up from 27 of them last year, a big increase. among the biggest winners, hyundai and kia had nine on the list. volkswagen and audi also won big, as did gm, ford, toyota, subaru. we've put the entire list on our website for you, that's nightly.msnbc.com. and last night, the university of connecticut women's basketball team crashed right through the previous college hoops winning streak, set by the ucla men back in 1974. the women won their 89th game in a row, beating florida state setting a new record for consecutive college basketball victories.

the last time the uconn huskies lost a game was back in april of '08. up next after a break, how some are making a difference this christmas by putting a little extra something under the tree.

for kids, as you know, this is supposed to be, as the song says, the most wonderful time of the year. but for those whose parents who are wounded vets or currently serving in uniform overseas, it can be a tough time of year. that's where a generous maryland woman comes in with an army of big hearted helpers. nbc's norah o'donnell has tonight's special holiday season "making a difference" report. >> reporter: silver spring, maryland is a long way from santa's workshop. but in this workshop, the elves are members of the walter reed auxiliary. you are like a mrs. claus. >> i guess, i never thought of that. in a way, but my santa claus isn't here. >> reporter: tracy hall, like many military spouses, is home alone this christmas. her husband jonathan is deployed to afghanistan, and she knows how hard the holidays are on soldiers, and especially their children. >> all the soldiers get nice stuff every year for christmas.

and it was like, what are the kids getting? >> reporter: so tracy created the gift tree, an online registry at target and amazon. >> i have a son, and i couldn't imagine not being able to afford a few extra things at christmas. >> reporter: new clothes, books and toys donated from those with generous hearts. >> this one's from pennsylvania. >> reporter: and tracy keeps track of every little detail. >> most of them come from the metro d.c. area, but there are ones from arkansas, wisconsin. it's coming from all over. >> reporter: hundreds of presents wrapped with care. sorted and stacked all by a team of cheerful volunteers. one by one, soldier's families arrive at tracy's door to pick up their gifts. >> they're going to love it. >> awesome. >> reporter: specialist william gorski and his wife have a new 9-month-old baby. gorski is a medic at walter reed and he's on his way to afghanistan in february. >> the fact that she put this

together just out of the kindness of her own heart for the patients and the staff there, just means a lot. >> reporter: and it means a lot to tracy, who, after all this, writes a handwritten note to every single donor. >> everybody gets a thank you. >> reporter: from you? >> yes. >> reporter: what do you say in the thank you? >> thank you for your support, thank you for giving. >> reporter: a reminder that in this season of giving, sometimes those already sacrificing so much are still willing to give a bit more. norah o'donnell, nbc news, silver spring, maryland. >> and by the way, you can find out much more about our "making a difference" reports. we've given them their own website, makingadifference.msnbc.com. of course, you can also get there, via our usual website, nightly.msnbc.com. for us, for now, that's our broadcast for this wednesday night. thank you, as always, for being here with us. i'm brian williams. we hope to see you right back here tomorrow evening. good night.

-- captions by vitac -- www.vitac.com hundreds of people evacuated as rain and mudslides threaten homes and lives. good evening. i'm jessica aguirre. the worst of the weather may be over here in the bay area but heavy rain is taking its toll on our neighbors to the south. we want to show you some video coming in right now. rain flooding the first floor of a h