Josey Wales

You're not wrong, work is manic at the moment!!
@IanLhas it right
The effect of suppression on morale (Combat Shock) is temporary and wears off once the suppression has lifted. The speed at which it wears off is dependent on the Experience & Leadership of the unit. 
The 'Broken' state is different from all of the other states as it cannot be arrived at by Combat Shock (suppression). A Broken unit which then suffers Combat Shock (suppression) will become either Shaken or Panicked until the suppression wears off when it will revert to Broken. 
In the video, the first example shows the conscript squad starting at 'Ok', then suffering Combat Shock from suppression and dropping down to 'Nervous'. They then take a casualty which pushes them into 'Panic' as a result of the combined effects of Combat Shock and now Combat Stress. As the Combat Shock wears off (suppression indicator empties) the squad recovers to 'Nervous' as a result of the permanent impact of Combat Stress from sustaining a casualty.
 
I'd be honoured Bil

Both @MOS:96B2P work on C2
 
and @Josey Wales work on the soft factors 
http://www.thefewgoodmen.com/thefgmforum/threads/the-relationship-between-soft-factors-morale-fatigue.26498/
have made a massive impact on a/ how I play, adding more immersion (I use my own rules that units cannot react to something they do not know about - hence C2 becomes really, really important b/ knowing how the soft factors work is really useful for modelling OOBs for scenarios to try to recreate how a unit behaved (in itself impossible to truly reflect reality but an interesting aspect to seek to model).
FWIW my SOP for 'spare' HQ units is to keep em on the map and cross attach them to other units to help disseminate info across my units C2 network. This works pretty well and in the absence of being able to task organise units in the editor is the best compromise I have come across. And it stops you using them as disposable recce units...

@MOS:96B2P yes the effects of Combat Stress move through the C2 structure.
A squad may have taken no casualties, but if the other squads in the platoon have been torn to shreds then they will be suffering a permanent impact on morale irrespective of how near or far they are from the other squads geographically. 
This can cause some odd effects but in general its a good system. 
 

You're not wrong, work is manic at the moment!!
@IanLhas it right
The effect of suppression on morale (Combat Shock) is temporary and wears off once the suppression has lifted. The speed at which it wears off is dependent on the Experience & Leadership of the unit. 
The 'Broken' state is different from all of the other states as it cannot be arrived at by Combat Shock (suppression). A Broken unit which then suffers Combat Shock (suppression) will become either Shaken or Panicked until the suppression wears off when it will revert to Broken. 
In the video, the first example shows the conscript squad starting at 'Ok', then suffering Combat Shock from suppression and dropping down to 'Nervous'. They then take a casualty which pushes them into 'Panic' as a result of the combined effects of Combat Shock and now Combat Stress. As the Combat Shock wears off (suppression indicator empties) the squad recovers to 'Nervous' as a result of the permanent impact of Combat Stress from sustaining a casualty.
 
I'd be honoured Bil

Yes, interesting ........... I have the following in my notes and maybe this plays a role. 
When a team/vehicle takes casualties other teams/vehicles/squads in the same platoon may have their morale negatively affected.  The other teams/vehicles/squads don’t have to be in C2 or line of sight of the team taking casualties to be negatively affected.
At the end of a battle I have seen broken fire teams that did not have casualties.  However other teams in the same platoon (maybe even same squad) did have casualties.  So I thought that was why they were broken without casualties in the team.  
Josey is probably off working a job, earning money and taking care of RL while we are discussing and trying to figure out the important issues of the day................. maybe when he is done goofing off for the day he will stop by ......  .   

Note quite. The morale status is linear but the shaken and panic states are temporary and can happen from any state once the unit is done being shaken or panicked they go back to a - usually worse - morale state:
OK -> Cautious -> Nervious -> Rattled -> Broken
         \           /                   /
      Shaken              Shaken
               \                    /
                     Panic

In practice it's often going to be the same thing - it's mostly only going to be obvious if the unit comes under a lot of fire, but doesn't take any casualties.

In hindsight I should have known that RT was Red Thunder.  I don't have Red Thunder.  Thanks for the replies.  Since Red Thunder covers the last year of the war I would be  more interested in the earlier years of the eastern front.  I am surprised Battlefront isn't working on that or a North African game like they had in the original Combat Mission series.  However, I am very much looking forward to Rome to Victory.  In my opinion, the current Combat Mission series is the gold standard for computer tactical warfare.

So, I bought CM: Final Blitzkrieg last week, and am extremely impressed! The attention to detail, the WEGO, the mission design, the fidelity, etc... It's all outstanding. Had a nail bitingly tense sequence where I was desperately trying to sneak a bazooka team to a nearby house to take out a PIV, the only tank in the entire scenario, to which we had no other answer. Glorious to watch the squad make it to the house under fire, then launch a round at near max range into the tank's side armor that knocked it out. I then took guilty pleasure watching my men gun down the hapless tank crew that abandoned and tried to get away. Incredible experience.  
Anyway, I do have some questions I hope you all can help me out with:
- When I try to set up a quick battle, the cost of units quickly maxes out my budgeted income, even when I set it for very large battles. Like, one tank will use up my entire budget. What am I missing? 
- Where is the best place to get graphical mods? 
- Is there any way to know more effectively whether your units have vision of something? I'm used to newer games where they have a vision cone (Steel Division, Graviteam Tactics games, etc...) that pretty clearly tells you what a unit can and cannot see. Is there an option in CM? 

Each time the bars fill up, the unit will drop a morale state. This will bounce back over time (if the shooting stops). There's also a permanent modifier of some kind with losses, which will limit what the peak of morale can be.

Since the rate the bars fill up is determined by the soft factors, they're more of a relative indicator than an absolute one - it's more important to know that the unit is "shaken" than it's got three yellow bars filled in. Some of this relative/temporary effect can be blindingly obvious - if a squad is cowering under mg fire, then it's pretty clear what's going on.

Based on both of the above, I've been a lot more mobile with my HQ units of late. They're frequently conducting a leader's recon, or running between squads to shore up C2 or share spotting contacts with the teams that need it. One nice consequence of the leadership modifier on the HQ unit is that a high leadership HQ can more effectively lead from the front, whereas a bad one should be kept back and out of danger.

There are no Advanced Squad Leader-style "national modifiers".

Soft factors and equipment can, however, make a huge difference in quality - in Combat Mission Shock Force, even with the same soft factors the Syrian army is not on the same level as the US, simply through available arms and armour. A WW2 US platoon can put out a much higher volume of fire than an Italian one, so would typically win a one-on-one firefight.

The mechanics behind soft factors are something of a black box, but @Josey Wales has done some excellent work in puzzling them out.

http://www.thefewgoodmen.com/thefgmforum/threads/the-relationship-between-soft-factors-morale-fatigue.26498/

In his findings, the leadership value only affects the squad themselves, and doesn't "filter down" at all.

There is still going to be a leadership effect, albeit sideways - if the subordinate squads have a valid C2 link, then they will have some defence against suppression, etc. Since the HQ unit being suppressed will knock out that C2 link, then higher leadership HQ units will stay un-suppressed longer, helping the platoon as a whole.
 
In terms of how C2 works in the game (surprisingly sophisticated), MOS:96B2P has an excellent guide here:
 
 

+1
CM has given me countless hours of the best game entertainment ever since 2000 for less than a dime a day.

But why not, if it turns out to be the best game you´ve ever purchased?

I have bought scores of games during the last couple of decades - and CMBN was surely the most expensive single purchase. But most of the cheap games I´ve bought were probably cheap because nobody wanted to pay full price for them. So in some cases I have paid 10 $ for a game I have scrapped after two hours. 10 $ might be cheap for a game - but is 5 $ an hour cheap?

The 60 $ I paid  for CMBN has given me thousands of hours worth of enjoyable gameplay for the past seven years. So in terms of cent pr. hour it is the cheapest game I ever bought.
 

It sure is funny how most of the people who complain about price and why is the games not on sale for bargain prices are people who have a handful of comments on the site and are recent new members.
In other wards I see them as typical gamers expecting the same thing they see with most of the rest of the industry. Expecting to get something for almost nothing after a short life span of the product , with a newer version out and selling again for that company.
They have never played any game for any extended period of time and are just waiting for the next thing on the market that they can consume.
The concept of a game with depth and years of endless playability is not a possibility in their thought process. Let alone a fact that the company is not capable of putting out new versions in a year or two with staffs in the hundreds to do such things. A product with only a handful of guys working on and making adjustments to and no ability to try and push the graphic limits of the present home computer each and every year.
They see it as a unknown logic in the world that they live in and cannot accept it.
I find it funny. BF is two guys that came from that world and hated it, created their own way to run and manage their game and have done what they wanted and made the life they wanted for themselves and provided us with games no one in the all powerful industry want to do.
So Bf keep selling and doing business how you want. I appreciate the games too much to care about sales and how they do business.

Just to be fair, I feel compelled to point out that Battlefront updates their titles over the years.  As an example when CMBN was first released it was Version 1.  Today it is v4.0 Engine 4.0.  If bought today you would be paying for the newest version of the game not the original game that is 5 or 8 years old (I think that's how it works).  I'm also not competent to say if their business strategy is correct however they are still in business so .......................    

But it works for 20 years now.

CMBN was released in 2011, so that's getting closer to eight years now.
And I don't think it's only a matter of pride. It's a business strategy where they prefer to sell fewer games at a higher price.
I'm not competent to say if that's the right strategy or not.

Sure, except that they'll be unable to move quickly when you actually need them to - getting out of the way of mortars, moving to the next objective, etc.

@Josey Wales is the expert on this stuff.  My understanding, mostly based on tests by Josey Wales, is the following:
Fatigue has no effect on a unit’s accuracy or on its morale state regardless if the current morale state is a result from either Combat Stress or Combat Shock or a combination of both.  Fatigue will only affect your movement options:
Tired troops cannot Fast Move.
Fatigued troops cannot Fast, Assault or Hunt Move.
Exhausted troops cannot Fast, Assault, Hunt or Quick Move.

WeGo, PBEM head to head, the contrast between control and no control and the ebb and flow of a game.
Playing CM against a human opponent is like a slow game of chess where you're trying to out think each other. Once everything's settled at home for the evening, I love opening up CM Helper to see my opponent has sent me a turn. Then the nail biting tension as I watch the replay file to see if my attack has worked, or if I've been a dumbass and got my elite pixeltruppen wiped out to a man.
CM is a brilliant, amazing, fantastic game. Is it the best game I've ever played? .....Probably!

Yeah the buildings are way too resilient. I'm playing a game right now where my opponent fired three 150mm howitzer shells directly at a building without even causing scratches. It was  a big building, so I didn't expect it to collapse, but at least a wall should be blown out.
However, when he fired on a tall free-standing wall, one hit made a huge hole in it, as expected. So either tall walls are too weak against big HE, or buildings way too strong.
(another point is that he also fired a quad flak gun at a similar building, and two bursts of 37mm flak removed one of the building walls, which is about what I would expect. So the issue seems mostly to be with big HE guns that fire single shots)

Worth mentioning that according to testing, the HQ's leadership will only affect the HQ unit itself - it doesn't filter down.

According to @Josey Wales''s work, the suppression resistance that commanders give troops is only reliant on having active C2 links, and not dependant on any Leadership stat. 

Since C2 can be broken by suppression, this does mean that a high leadership HQ unit will maintain C2 for longer under fire (since it will stay unsuppressed for longer) - so a high leadership HQ is better at leading from the front, whereas a bad leader is better left safely behind cover, letting the squads get on with it (but maintaining contact).

So it works out to being a similar effect, but backwards, and only if you are careful about maintaining command and control.

Everytime when I bought a computer the last 18 years, the first and most important thing is that Combat Mission is running smoothly on it. I love to plan, see the replays and the unbelivable variation in these games. Best thing since I played wit 1/72 Airfix figures in my youth.

Oh! Oh! They can also do the really new hip thing in monetization:
Paid save slots! Yes, that's a thing!
Each extra save slot/pbem slot you get will cost 5 COINs.
"Your artillery barrage will arrive in approximately 7 minutes..."
"Would you like to get it in 3 minutes, by spending 10 COINs?"