How Is America Reacting to the Debt Ceiling Drama? Nobody knows what the first default in US government history might look like, and it might take until midnight Tuesday before the world knows whether it's going to happen.  The House and the Senate are still going in different directions. They look like they're working hard, but it doesn't appear they can resolve the debt-ceiling issue before the weekend. Informal surveys of ordinary Americans are getting responses like "shameful," lunacy," "clowns" and "embarrassment." How does it look in various parts of the country?

Leon Panetta, Obama's Surprise Pick to Head the CIA Democrat Leon Panetta of Monterey served in Congress for 17 years. He was Bill Clinton's budget director and chief of staff, and he was part of the Iraq Study Group . He's well regarded as a competent, nonpartisan manager, but he does not have direct, hands-on experience in intelligence. His reported appointment to head the CIA comes as a surprise.

Obama Names His Nation Security Team Barack Obama's national security team is full of familiar faces, including Hillary Clinton at State and Robert Gates staying on at Defense . Along with former Marine Corps Commandant General James Jones at the National Security Council , they've had many public disagreements with the president-elect. As he introduced them today, the President-elect described himself as a strong believer in strong personalities and strong opinions. Cautioning against the danger of "group-think and affirming that he welcomed " vigorous debate inside the White House ," he acknowledged that the buck stops with him. We hear about his so-called "team of rivals." Can they implement his vision for combining force and diplomacy?

The Looming Political Battle over Iraq Although Congressional Democrats failed to prevent President Bush's military surge in Iraq last year, they won a concession. They funded the increased deployments, but demanded that the administration report on the success of its operations by September 15. With that day of reckoning almost here, the political battle lines have been drawn. Many Democrats, and a growing number of Republicans, are demanding a withdrawal. The military is stretched to the breaking point, but terrorism remains a threat and the President says the surge needs more time. When General David Petreaus makes his report next week, Bush will face one of his toughest decisions since he launched the war: does the US stay or go? Can Bush continue to fight and still bring some troops home? Guest host Jim Sterngold explores the chaos of Iraq that's taking center stage in the chaotic political arena in Washington.