anna werner, cbs news, austin. >>> coming up after your local news on "cbs this morning," the mysteryongressman jesse jackson, jr.'s extended medical leave of absence. we'll get the latest from washington. >>> plus the backlog at the department of veterans affairs that's delaying compensation for hundreds of thousands. david martin has a closer look. and a sit down with rock'n'roll legend stevie nicks. that and more a little later on "cbs this morning." >>> for now, though, that will do it for the "cbs morning news" for this wednesday. as always, appreciate you watching. take care everybody. i'm terrell brown. take care everybody. i'm terrell brown. have a great day. -- captions by vitac -- www.vitac.com www.vitac.com >>> several fires at a fan as a park. why they're being called suspicious this morning >>> police are chasing down a teacher >>>

anna werner, cbs news, dallas. >> mason: j.p. morgan chase said today that high-risk investment that went bad cost the bank a lot more than $2 billion c.e.o. jamie dimon first reported. j.p. mortar gone said losses are up to $5.8 billion and could top $7 billion. but dimon said today the worst appears to be over. j.p. morgan stock soared 6%. $200 million in customer money has vanished from an iowa brokerage firm called p.f.g. best. the c.e.o. was arrested today, accused of making false statements to regulators. russell wasendorf senior is now being called the midwest madoff. after a ribbon cutting ceremony if 2009, russell wasendorf senior proudly showed off his new headquarters to iowa's congressional delegation, including senator chuck grassley. but the gates are now locked. wasendorf was arrested today after regulators discovered $200 million in missing customer money. on monday, wasendorf attempted suicide in his car in the company parking lot, leaving a note that said "i have committed fraud." >> i felt that cedar falls is a

anna werner looks at what will happen to food prices. a big advance in the battle against alzehimer's disease. dr. jon lapook on a new drug that may slow mental decline. and the man who saved a nation. honoring nelson mandela as he turns 94. mark phillips is there. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. this is worst economic recovery america has ever had. we've been looking for hopeful signs, but today the chairman of the federal reserve threw a cold splash of reality on those hopes. ben bernanke said any improvement in unemployment will "likely be frustratingly slow." well, yes, to say the least. have a look at this. this chart starts in january, 2008, with the steep rise in unemployment. unemployment soared over 8% and it has stayed over 8% for 41 months in a row. it's 8.2% right now. bernanke was telling congress how he saw the near future, and we asked anthony mason to fill us in. >> reporter: in battle creek, michigan, this week, the "now hiring" call posted by a casin

reports from john miller and anna werner as the first victim is laid to rest. what grows in a drought? food prices. dean reynolds on how much more you'll be paying. rebels claim they now control half of syria's biggest city. clarissa ward is in syria. elizabeth palmer across the border in lebanon. and nasa's mission to mars. >> this mission is the coolest thing i think we've ever done. >> pelley: bill whitaker on why it's being called "seven minutes of terror." >> pelley: good evening, no one saw the movie it out days before thecoul ng suspect james it out days before thecoul ng suspect james d been sent to correspondent john miller detail cted. reporte u.s. p might sent out.they didn't fint know the pa butf's bomb it ives inside. sources say the a pent-up holmes to of his psors. in it he ta psors. in it he ta people andd crude s. days rooday's shooting butbee procesl former profiler mary ellen says we may see more letters from mary ellen says we may see more letters from >> particularly because of differe crime that put them in that mail room and apparently th

more now from anna werner. er.reporter: college students demarieno hill and dominique ndnday are registering voters in houston's third ward, a place where many minorities aren't eigned up to vote. it thank you. gn okay, then. >> reporter: they don't like the new law. >> we already have an uphill struggle to encourage people to register so now when we tell them they have to jump through these hoops it's more of a struggle. >> reporter: the law requires texas' 13 million voters to tresent a photo i.d. at the polls and not just any photo , on, only a driver's license, passport, military i.d., gun permit, or a state-issued identification card will be accepted. attorney general greg abbot says it's to combat election fraud. >> in this last election in may there were more than 200 votes cast for corpses and when you have dead people casting votes you see we have a threat to the integrity of the election itstem. >> reporter: abbot points to 62 fraud cases prosecuted by his office over ten years. st during the same tim

anna werner reports. what's behind this extreme weather? wyatt andrews say a government study out today names the culprit. and david martin on the unbelievable mountains of paper that stand between wounded veterans and their benefits. >> you're surrounded by paper. i am. i am. this is my daily life. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. if you go to the official website for the city of scranton, pennsylvania, you will find this boast: "the future is here." well, city workers hope not because their pay has just been slashed to minimum wage. scranton is just one of many cities struggling to recover from the great recession. american cities have seen their revenues decline for five straight years. 72% of them are making personnel cuts. it's a problem most everywhere so we have reports from east coast to west. first, elaine quijano in scranton. elaine? >> well, scott, when public union workers opened their paychecks here last friday they were shocked to see just how small those ch

reports from chip reid, sharyl attkisson, and anna werner. the supreme court upheld the health care law because one justice changed his mind. jan crawford has a rare look inside the deliberations. and in a city at war with street violence, this was too much to bear. dean reynolds in chicago on the killing of a seven-year-old named heaven. >> she took her last breath in my arms. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. in the east, millions are without power tonight. in the west, thousands are fled their homes. rarely do we see the power of wind and fire over so much of the nation at once. the wind came in hurricane force announced friday night across the mid-atlantic by lightning that some described as an artillery barrage. destruction stretches 600 miles across ten states. 22 were killed over the weekend, mostly by uprooted trees that had been turned over in 80 miles an hour winds. more than two million homes and businesses are still without power. marcia mcleod and her great gran

anna werner reports the dry weather covers more than half the continental united states. >> we've never seen a drought like this. >> pelley: the international red cross declares the conflict in syria a civil war. >> there's no doubt in my mind that this regime is at the beginning of what will be a painful end. >> pelley: mark rhett brennen talks to secretary of state clinton. as the first athletes arrive for the olympics, elizabeth palmer reports the british are struggling with security. and dean reynolds on the lives left in ruins in a town that put its hope in the man they called the midwest madoff. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening, we haven't seen anything like this in more than 55 years. across the middle of the country the sun is beating down on dying crop and shrinking lakes. we got word in the newsroom today from the federal government that more than half of the continental united states 55%, is now experiencing moderate to exceptional drought. that is more of america drying out than at any time since 1956. we'r

anna werner is in colorado. the u.s. economy slows sharply, raising the risk of a new recession. rebecca jarvis has the latest numbers. the olympics get off to a ringing start, and mitt romney get caught up in it, in the traffic, that is. mark phillips is in london. and request "on the road" with a champion broadcaster. >> here's one. >> pelley: steve hartman with the sound and the story. >> reporter: you reported on 9/11. >> yes. >> reporter: pearl harbor. >> yes. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. most everyone who saw james holmes in court on monday wondered about his mental state or whether he was medicated. he looked like he didn't know he was there. he wasn't following the conversation, and when the judge asked hem a question, holmes' lawyer jumped in before he could speak. well, tonight, we have learned that holmes was in fact under the care of a psychiatrist before he allegedly opened fire on the audience in a movie theater in colorado, killing 12 and wounding 43. anna werner has the late-breaking details

anna werner reports the dry weather covers more than half the continental united states. >> we've never seen a drought like this. >> pelley: the international red cross declares the conflict in syria a civil war. >> there's no doubt in my mind that this regime is at the beginning of what will be a painful end. >> pelley: margaret brennen talks to secretary of state clinton. as the first athletes arrive for the olympics, elizabeth palmer reports the british are struggling with security. and dean reynolds on the lives left in ruins in a town that put its hope in the man they called

reports from john miller and anna werner as the first victim is laid to rest. what grows in a drought? food prices. dean reynolds on how much more you'll be paying. rebels claim they now control half of syria's biggest city. clarissa ward is in syria. elizabeth palmer across the border in lebanon. and nasa's mission to mars. >> this mission is the coolest thing i think we've ever done. >> pelley: bill whitaker on why it's being called "seven minutes of terror."

anna werner is in colorado. the u.s. economy slows sharply, raising the risk of a new recession. rebecca jarvis has the latest numbers. gee olympics get off to a rnging start, and mitt romney get caught up in it, in the traffic, that is. hirk phillips is in london. and request "on the road" with a champion broadcaster. he here's one. >> pelley: steve hartman with the sound and the story. >> reporter: you reported on 9/11. po yes. >> reporter: pearl harbor. >> yes.

here's anna werner. >> reporter: hines of cars lined up sunday as some residents were allowinged baing into neighborhoods badly damaged by the fire for the first time. doug gibson can't move back into his house yet. but it is still standing. >> you were lucky. >> very. >> reporter: when did you learn that? >> probably after i saw the denver post's pictures and i could actually see our house. but our neighbors house next to me was burned down. but many of the other homes that are close by were still in perspect-- perfect shape. >> reporter: others found their homes in ashes. the intense flames obliterating almost 350 homes. and though the fire is 45 percent contained and hasn't spread in three days, danger remains. fire officials tell cbs news conditions now are similar to use when the fire raged out of control. that's the reason roughly 10,000 people remain evacuated. down from 30,000 at the height of the fire. >> he's happy to be home. >> reporter: some who have returned home found property missing. linda burton's car was stolen from in front of the house she was forced to evacuate. >

anna werner is outside that jail in centennial, colorado. anna, what did you find out today? >> reporter: scott, public defender daniel king got his chance to go inside the apartment of his client, james holmes, today, the police where the 24-year-old allegedly plotted last friday's shooting. king and his team were in the apartment for about an hour. we could see them walking around through the broken window. this comes one day after prosecutors and investigators also spent time in the apartment gathering more evidence. one neighbor who did not want to go on camera told us he remembers starting in mid-june seeing james holmes leave his apartment carrying a rifle bag and targets in the mornings. authorities here believe holmes was very familiar with his weapons. jennifer seeger, who was just five feet away from the gunman when he entered theater 9's emergency exit says he took precise aim at victims. >> he was relentless. he kept shooting, fires, over and over. i think there was probably 50 gun shells in there just on people alone and anybody would try to get away they would..

but anna werner found that's not all that will be costing more. she's down on the ranch in texas tonight. >> reporter: jim selman's family has owned this 3,000 acre ranch near gonzales, texas, since 1861. the fields are green, but this is not grass. last year's drought killed it all. so the cattle won't touch this stuff even though it's green. >> even though it's green, it's not palatable to them. >> reporter: faced with shipping in expensive feed, selman sold off his entire herd-- 600 head of cattle. >> and now i have one cow and five calves that i could get out of the brush and i will get them sooner or later. >> reporter: in the last two years, texas ranchers have reduced their herds by 15%. the department of agriculture says the number of cat until the u.s. is at its lowest level in 60 years. that's propped up prices. the average price for a pound of ground beef is $3 a pound. that's a penny short of its record high. as this drought widens, as feed prices spike, beef producers can lose as much as $200 per animal, so more livestock producers ar

anna werner looks at what will happen to food prices. a big advance in the battle against alzehimer's disease. dr. jon lapook on a new drug that may slow mental decline. and the man who saved a nation. honoring nelson mandela as he turns 94. mark phillips is there.

anna werner takes us there. >> more than half the patients at the health clinic in dallas are uninsured. nearly a third are on medicaid. the federally sponsored insurance program for the poor. dr. seuss and briner runs the clinic. who are these people that you're seeing? >> the people without health insurance in texas are the people who work at low-paying jobs, the people you would expect, you know, the people who work by the hour, who work in restaurants, who work in yards, who work in day cares. >> reporter: two million more low-income texans would be covered by med kaid expansion prescribed by the affordable care act but texas is refusing to participate. joining wisconsin, florida, and louisiana. texas would be eligible for $164 billion in federal aid to pay for the expansion through 2020. but lieutenant governor david dewhearst says texas' share of $27 billion would be a heavy burden. >> quite frankly, the med kaid system is broken and by simply adding a million-and-a-half to two million more people to medicaid will not solve the problem. >> reporter: texas will also be the lurchest

we're going to look at why this is happening and when it might stop and we start with anna werner in texas with the dramatic pictures of how the country is suffering. >> reporter: times are hard on easy street. that's the name of this marine in in jonestown, texas. the falling water level has forced the owner to temporarily move his marina out to deeper water three times in six years. >> there's only so much you can take as a small business person when this is... this keeps happening over and over and over again. >> reporter: lake travis is not just for recreation, it's part of a network of reservoirs that supplies water to one million people in central texas. now it's more than half empty. nearly 30 feet below normal july levels. what are the consequences for you here as a marino that owner? >> huge financial consequences. everything you can imagine fwrrx loss of customers, loss of confidence in the management of the water in lake travis, it affects not just us but affects property owners. >> reporter: this summer, 80% of the u.s. is abnormally dry. grazing pastures are barren and b

anna werner is near colorado springs this evening. >> reporter: fire managers say this wildfire burned more than 1,500 degrees-- hotter than a lava flow as it ripped through the mountain shadows neighborhood. 57-year-old susan solich lost everything. >> well, you don't lose your memories, you always have those. >> reporter: solich took these photos on her first visit to her burned out home. the house she lived in for 18 years is a pile of ash. >> i told someone i felt like i had had a big operation and i'd had my home removed. >> reporter: you lost a part of you. >> a huge part of me. >> reporter: what's the feeling in here? >> sad. very sad. a little bit of anger. i don't know what i'm angry at, though. >> reporter: nearly 350 homes were incinerated by the most destructive fire in colorado history. rich harvey is incident commander. >> the line itself is in, the firefighters are working to hold it, improve it, and secure it. colorado is having a historic fire season. and the west, really, isn't that far behind. it's not just colorado. >> reporter: an average year, roughly 74,000 acres

anna werner has the late-breaking details at the arapahoe county jail where holmes is held in solitary confinement tonight. >> reporter: a motion filed by joms' public defender reveals he was under the care of psychiatrist lynne fenton. dr. fenton is the medical director of student mental health services. holmes was a graduate student at the school. earlier this week, school officials said students were monitored by mental health specialists. >> the faculty and program leadership meet on a regular basis to discuss how the student' doing, the stars and difficult students. >> reporter: a package sent by holmes to dr. fenton was recovered by police in the school mailroom on monday. sources say the package contained a letter written by holmes that described shooting people. it's unclear when holmes sent the package. holmes' lawyers say the discovery of the letter should never have been made public because it contained communications from mr. holmes to mr. fenton that mr. holmes asserts are privileged. holmes is expected to be formally charged on monday. ♪ ♪ today, funerals were held for th

anna werner is in colorado spring. anna, good morning. >> good morning, jeff and erica. one of the neighborhoods hardest hit was a subdivision called mountain shadows. many of the homes there were simply incinerated. when you see the fire that descended on that neighborhood, you can understand why for many residents who went back there was nothing left in what is now the most destructive fire in colorado history. 11 active wildfires continue to burn more than 165,000 acres across the state. some of those fires started seven weeks ago. one of the worst, the waldo canyon fire in colorado springs. >> i was standing right up in that area. >> wayne shot this video of the fire as it approached the mountain shadows neighborhood. >> i could see the fire come over the top of the ridge and within a period of about six minutes, it went from the top of the ridge almost down to the neighborhood. >> on sunday, residents finally saw what was left of their neighborhood. >> victor malone and joanne moved her just a year ago. >> this was a bird feeder we got from the realtor. ashes to ash

erica and charlie, back to you. >> anna werner, thank you. senior correspondent and former fbi assistant director john miller joins us. take us to the crime scene. what are they looking for? what do they hope to find? >> as anna told us, they're going to release it, the plan was to give it back today. but the defense wants to look at it. that's going to take time. authorities want to do much more advanced crime scene work using the newest tools to figure out bullet trajectory but also to be able to go back to the crime scene virtually as many times as they need to and literally ask questions. what does that mean? yesterday i talked to how sherman and -- from the nypd crime scene unit. they use a nikon 360 -- nikon station tool or the lika version where they go in and map the evidence points in a scene like this one. we used the theater as a backdrop to show what they would do. then they can take that mapping, which is measure digitally with lasers and they can take, say, ballistic evidence and where the shell casings are to show where the gunm

reports from chip reid, sharyl attkisson, and anna werner.eld the health care law because one justice changed his mind. jan crawford has a rare look inside the deliberations. and in a city at war with street violence, this was too much to bear. dean reynolds in chicago on the killing of a seven-year-old named heaven. >> she took her last breath in my arms. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. in the east, millions are without power tonight. in the west, thousands are fled their homes. rarely do we see the power of wind and fire over so much of the nation at once. the wind came in hurricane force announced friday night across the mid-atlantic by lightning

anna werner has more from colorado. >> any questions about that -- >> in his first court appearance, james holmes appeared disconnected from his surroundings. many questioned his mental status. now a motion filed by holmes' public defender shows he was being treated by a psychiatrist from his university, dr. lynn fenton. fenton is the medical director at the university of colorado denver anschutz medical campus where holmes was a medical student. she's also the person who he sent a package to. cbs sources say the package contained a letter written by holmes that described shooting people. holmes' lawyers now say the discovery of the letter should never have been made public because it contained communications from mr. holmes to dr. fenton that mr. holmes asserts are privileged. >> meanwhile, the victims of last friday's shooting are being remembered at funerals and memorial services. one of those killed was 18-year-old a.j. boik who just graduated high school in may. those who knew him well, family and friends, attended a church service friday. but he was on the minds of casual acqua

anna werner reports the dry weather covers more than half the continental united states. >> we've neverlike this. >> pelley: the international red cross declares the conflict in syria a civil war. >> there's no doubt in my mind that this regime is at the beginning of what will be a painful end. >> pelley: mark rhett brennen talks to secretary of state clinton. as the first athletes arrive for the olympics, elizabeth palmer reports the british are struggling with security. and dean reynolds on the lives left in ruins in a town that put its hope in the man they called the midwest madoff. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening, we haven't seen anything like this in more than 55 years. across the middle of the country the sun is beating down on dying crop and shrinking lakes. we got word in the newsroom today from the federal government that more than h

reports from john miller and anna werner as the first victim is laid to rest. what grows in a drought? food prices. dean reynolds on how much more you'll be paying. rebels claim they now control half of syria's biggest city. clarissa ward is in syria. elizabeth palmer across the border in lebanon. and nasa's mission to mars. >> this mission is the coolest thing i think we've ever done. >> pelley:

anna werner looks at what will happen to food prices.e battle against alzehimer's disease. dr. jon lapook on a new drug that may slow mental decline. and the man who saved a nation. honoring nelson mandela as he turns 94. mark phillips is there. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. this is worst economic recovery america has ever had. we've been looking for hopeful signs, but today the chairman of the federal reserve

anna werner is in colorado. the u.s. economy slows sharply, raising the risk of a new recession.ca jarvis has the latest numbers. the olympics get off to a ringing start, and mitt romney get caught up in it, in the traffic, that is. mark phillips is in london. and request "on the road" with a champion broadcaster. >> here's one. >> pelley: steve hartman with the sound and the story. >> reporter: you reported on 9/11. >> yes. >> reporter: pearl harbor. >> yes. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. most everyone who saw james holmes in court on monday wondered about his mental state or whether he was medicated. he looked like he didn't know he was there. he wasn't following the conversation, and when the judge asked hem a question, holmes' wy

anna werner reports for wjz. suspect james holmes sent a package, allegedly detailing his plans to kill. >> reporter: the university of colorado denver medical school is disputing reports that a package, allegedly sent by james holmes to a professor, sat in the school's mailroom, untouched, days ahead of last friday's shooting n. a statement, the school confirmed that it received a suspicious package. but that it arrived on monday. and that it was, quote, immediately investigated and turned over to authorities within hours of delivery. the building was evacuated while the aurora bomb squad dispatched a robot to screen the package. sources say the package contained handwritten papers that holmes addressed to one of his instructors who is also a psychiatrist. in the documents, they say holmes talked about shooting people and even included crude drawings ever a gunman and his victims. >> came here, like they have a super power. >> reporter: video shows holmes before the shooting, giving a presentation at a science c

anna werner reports. what's behind this extreme weather?rews say a government study out today names the culprit. and david martin on the unbelievable mountains of paper that stand between wounded veterans and their benefits. >> you're surrounded by paper. i am. i am. this is my daily life. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. if you go to the official website for the city of scranton, pennsylvania, you will find this boast: "the future is here." well, city workers hope not because their pay has just been slashed

anna werner is in gonzalez, texas with the story of this deepening crisis. good morning. >> reporter: good morning senator ah and charlie. this is what's happening to many herds. they're being sent to slaughter or auction. the drought has dried up the land and the grass that ranchers need to feed their cattle. buying hay to feed them is expensive and for many ranchers, it's a losing proposition. herds statewide have been cut by 10 so 15%. rancher jim sellman and his family raised cattle on 3,000 acres here in gonzalez, texas since 1861. this year he had to sell off his herd of 600 cattle. >> just costs a lot to feed them. if you don't have grass to grow them and to carry the cows so that they have calves, well, you're just really up the creek. >> reporter: he expects to bring cattle back eventually. but some won't be able to do it. they're out of business permanently. and consumers will also feel the pinch out of all of this. because of the glut of beef coming in, prices are expected to drop temporarily but next year they say they'll be on the rise and let's

anna werner is there where he's being held. >> good morning, erica and charlie. sources say that package contained pages of handwritten papers from holmes. first reports suggested that it had sat unattended for some time. the university now says that's not true. the university of colorado denver medical school is disputing reports that a package allegedly sent by james holmes to a professor sat in the school's mail room untouched days ahead of last friday's shooting. in a statement, the school confirmed that it received a suspicious package. but that it arrived on monday and that was "immediately investigated and turned over to authorities within hours of delivery." the building was evacuated while the aurora bomb squad dispatched a robot to screen the package. sources say the package contained handwritten papers that holmes addressed to one of his instructors who is also a psychiatrist. in the documents, they say holmes talked about shooting people and even included crude drawings of a gunman and his victims. >> gamers might feel they have a super power. >> vide

may soon start having a noticeable impact on the price of everything from food to gasoline, and anna werner is in jonestown, texas. good morning, anna. >> reporter: good morning, nora and charlie. we're at the edge of lake travis, which is a popular recreation spot for many texans, but the problem is not going to be just how much it costs them to drive here or to eat out here, but what they're going to see when they get here. parts of a lake are virtually dried up. the water should be right here at my feet. instead, it's 30 feet down. the biggest drought in more than half a century is leaving fields from ohio to california dried up and desperate for rain. >> we've never seen a drought like this. you can see firsthand how depleted, how serious this matter is, this drought. >> reporter: the department of agriculture estimates that nearly 40% of the nation's corn crop is in poor condition, which economist chris hurt says is bound to have a ripple effect on the economy. >> well, there's no question, this is a major drought, and it's going to cost tens of billions of dollars. >> reporter: here's