is everything, right, came down during this bail hearing. the defense announced he's just been indicted. the defense is arguing to the judge, look, he wasn't trying to skip town after this alleged encounter. instead, he had bought his ticket days and days earlier. he had not just bought his ticket and tried to leave. they're also saying that he will live with his wife who has rented a an apartment in new york city and i just got this, they are proposing he live in an apartment monitored by cameras, a monitoring bracelet, and an armed guard. the d.a. is arguing this defendant has a propensity for criminal conduct speaking about all the other alleged cases back in france, including the woman in 2002 who says he sexually attacked her. we're still await, martin, word on whether bail will be granted to him or not or whether he's heading back to rikers. >> i note that the prosecutor said the proof is substantial and it's continuing to grow every day. does that suggest that they're accumulating more and more evidence in relation to this case? >> reporter: that's certainly what it sounded like though they didn't get into what that evidence is. they're trying to make an argument to the judge you have to give us more time with him into jail. we have a solid case but they didn't want to go into detail of what they have tipping their hand to the defense. and so, yes, the prosecution made it very clear, we have a strong case, we're getting more and more forensic evidence every day and they said in court today, the d.a. did, that the forensic evidence backs up the story of the accuser, the hotel maid, who says that dominique strauss-kahn attacked her sexually twice in the room. we're waiting to see what the evidence is and what the bail will be, if there is any. >> am i right in understanding he's supported by his wife and his daughter in court? >> reporter: yes. in fact, they're both inside. his wife two flew in from paris, his daughter who lives in new york city, both supporting him. his wife put out a statement saying she doesn't believe for a second the accusations are true. this is the same woman who stood by him during an admitted affair by dominique strauss-kahn back in 2008. the wife has been through a lot and she remains firmly in his corner here in court today. >> our correspondent jeff rossen, thanks so much. as we mentioned, a decision on bail for strauss-kahn could come down at any moment. joining us to offer some legal insight into the ongoing court proceedings is msnbc senior legal analyst susan filen. thanks again for joining us, susan. the prosecution is saying this is a man who's likely to flee, he has the means to flee. do you think that he's going to be granted bail? >> well, the test for bail is two-prong. whether he's a rick of flight and whether he's a danger to the community. the prosecution is saying if anybody is a flight risk it's dsk and now they're saying he's dangerous, too, because he has a propensity of violence against women. they're bringing out this uncharged conduct from incidents in france. the judge will have to listen to this carefully. the defense is saying, wait a minute. there's precedent for letting people out on bail who are fl flight risk's because they're wealthy, look at bernie madoff. they're saying we're going to give you a package to ensure his future court appearances, and if we can, he has a right to be admitted to bail. bail isn't supposed to be punitive. it's not supposed to hold him just in case he might flee. with a cash bail of $1 million, with electronic monitoring, with video surveillance, with an armed guard, that's going to ensure. he's already given up his passport, already said he's not going anywhere. given that, judge, you've got to let him out on bail. other people have been let out on bail for far more serious crimes than that. prosecution is going to say but nobody poses a flight risk like dsk. >> what about the fact that earlier in the week he was told no bail whatsoever? how has he managed to use the judicial process to go before a different judge and apply for bail? >> two things. this is essentially an appeal from criminal court to supreme court, and, secondly, at the time they didn't have -- the defense didn't have a chance to put together a bail package. it was too quick, too fast. the prosecution had to say you have to hold him both to give us a chance to put our case together and to find out whether he's a flight risk and i don't think the defense made too big a deal of it either because they needed a chance to get their ducks in a row. now they're going befer a higher court and they have their bucks in a row. >> we're hearing in court his assets are being diminished by his own lawyers. most of his assets are in his wife's name. again, a good tactic it try to win bail? >> maybe they're trying to say he doesn't have the means that you think that he does. hard though when he controlled the purse essentially to the world's money. >> attorney susan filian, thanks for joining us. the way the strauss-kahn case has been handled in the u.s. has caused outrage in france with some calling it humiliating and degrading stirring up a good deal of anti-americanism. our correspondent michelle kosinski joins us live now from paris where i assume she's getting an earful from the french. good afternoon, michelle. >> reporter: hi, martin, yeah, i am. but there's been a huge shift in the attitude toward this case over the last couple days. initially, yes, there was a shock of seeing not only dsk in american custody, the french can't do anything about it, they can only sit and watch and look at the details coming out, but this is a stystem where the pres isn't allowed to show a suspect in handcuffs, where there are no cameras in the courtrooms. there was that outrage where this is like an ancient public exhibition. but that was then. things have turned immensely. now a lot of anger is directed towards strauss-kahn himself. all of these details are being rere resurrected from these allegations in the past. one was an affair with a subordinate. she described him as having coerced her and she said he had a problem. she filed a complaint against him and it was all basically dismissed. there was another young woman who claimed he sexually attacked her in 2002. she didn't press charges because she said her mother is a socialist politician and had dissuaded her from doing so. now she might file charges. plus, woman after woman after woman is talking about not necessarily criminal allegations against strauss-kahn, but misconduct that they're alleging. things like he groped them on this date or in this place, that he propositioned them. journalists saying he offering them interviews in he can change for sex. really bad behavior and the press has latched onto him and they're also questioning french society saying why didn't people take this seriously enough back then? was this an indication there was a potential raub in tproblem in works? why didn't they delve into his private life? that's not really done here in france. as one journalist told us, if it's not illegal, it's private. there's been in kind of soul searching that results. nobody is really piling on the american justice system at this point. i think they're disappointed to still see him in custody and on camera. however, all of the attention now is on his past behavior over the last several years. >> isn't it also the case that if strauss-kahn were tried for these offenses in france, he actually wouldn't face a jury but simply a judge. >> reporter: right, and that's how it's done in a lot of european countries, that it's much more contained. the system is different. the entire system is different from start to finish. like i said, not being allowed by law to show a suspect in handcuffs, and then the process tends to be much quieter. although these details leak out. the issue of cameras on the entire process is really a shock to the french public. initially they didn't like it. they were sort of looking for a reason to say this can't be true, this has to be some kind of setup. many people do still think that that could be the case, but that's faded away over the past few days. now everybody wants to know what really are the details of these serious crimes that are alleged against him in the united states? attention focused away from the american process and directly onto strauss-kahn. >> correspondent michelle kosinski in paris, thank you for joining us, michelle. neck, the other woman. arnold schwarzenegger's other woman. 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[ male announcer ] nothing's proven to relieve pain better than extra strength bayer aspirin. it rushes relief to the site of pain. feel better? yeah. thanks for the tip. now to breaking news that involves two of the most notorious criminal cases of the last century. the fbi is investigating victimed unabomber ted kosinski in relation to the tylenol poisonings. he was found guilty of killing three people during a mail bombing campaign that lasted almost 20 years. now the fbi is working to get a dna sample from kosinski to see if he could be a match in the tylenol poisoning case. seven people in the chicago area died after taking pills laced with cyanide. kosinski for his part is refusing to give a dna sample so the next step is likely to be a court order. we'll keep you posted. the shocking details keep coming in the scandal involving former governor arnold schwarzenegger and his secret love child. we now have photos of his mistress, mildred baena, who worked for the family for 20 years. and for 13 years she kept a secret that her baby, born within a week of maria shriver's youngest son, had also been fathered by arnold. the baby boy was born just five days after arnold and par rea's youngest son christopher. and while baena's then husband was listed as the father, on later divorce documents she said she had no children as a result of the marriage. when is he retired she move ed with her son to this home in bakersfield. >> we knew that arnold schwarzenegger had purchased this house we thought as a gift for -- a retirement gift for his aide. >> since the scandal broke, schwarzenegger has been ducking reporters and declining interviews and while maria shriver made an appearance on tuesday for the taping of oprah, there are reports she's retained the high powered los angeles divorce attorney laura wasser. for more on the scandal i'm joined by kim seraphim. it's great to have you back on the broadcast. not a day passes without another detail. all of this seems to increasingly damn the former governor. is that right? >> oh, yeah, i think so. when you were looking at these photos that tmz has obtained of arnold and these women, i think it sheds a lot of light. you know we will start seeing more photos of the two of them together, more photos of this housekeeper and more details that will emerge. tmz is reporting that arnold was very generous not only with her but her family reportedly paying for a party for her niece. appearing at this party, making a speech that he would always take care of her and her family. we're starting to hear these little details. at the same time hearing these reports about maria shriver hiring a divorce attorney. the reports and looking at the twitter accounts of arnold's children. his son patrick changes his last name to patrick shriver on his twitter account. i think it's making people have even more sympathy for maria, for the family, for the children, and for this other son of his who god only knows what his life is going to be like in the future. >> we've seen these pictures emerging of mildred baena in happy moments with the family, with the schwarzenegger family particularly. do we know any more about her role in this family and the extent of the affair with arnold himself? >> there are certain details emerging, but as you mentioned, i think the most shocking thing to a lot of people was that her pregnancy was simultaneous with maria's pregnancy, that she gave birth to this child five days according to reports after maria gave birth to their youngest son. the fact they were pregnant at the same time in the same house is probably the most shocking thing that people are hearing these days. >> what about the house that he apparently bought for his mistress because that appears rather well appointed. ige it's in the bakersfield area, four bedrooms. that seems to suggest that mr. schwarz certainly has taken care of this family financially. >> certainly. they obviously had some sort of deal. he was certainly taking care of her, possibly buying this house, maybe in exchange for her silence. so who knows what this agreement was and i think people are still questioning how did this escape notice for so long, for this many years. people saying maybe she obviously was not a political aide, so being a household aide, maybe that kept her a little under the radar. probably very, very few people knew about this. he certainly has enough money, he's worth something like $300 million. so this certainly wouldn't have affected any bank accounts. nobody would have even known about the money he was paying for her for child support because of how much money he actually has. so i think that's one of the republicans people a reasons people are saying it escaped notice. even though there had been so many rumors about a possible love child, about some of these indiscretions. >> have you heard any other rumors? because i was reading online last night the suggestion by at least three different websites that there might be another love child, that he might actually have fathered another child outside of his marriage to maria. >> there definitely are now more rumors surfacing. a lot of even claims from back in 2003 when all of these allegations started coming out. things are emerging again about some of his past, about possible other children out there. no concrete evidence right now as of yet, but i'm sure there will be more people coming forwa forward. >> thanks again for joining us, kim. >> thanks. more on arnold ahead as victor conte, the godfather of performance enhancing drugs, helps us examine the role steroids played in arnold's cheat to win mentality. she felt lost... until the combination of three good probiotics in phillips' colon health defended against the bad gas, diarrhea and constipation. ...and? it helped balance her colon. oh, now that's the best part. i love your work. [ female announcer ] phillips' colon health. just a couple hours ago, president obama delivered a major speech on the middle east and north africa, the first time he's done so since the uprisings in the region and the killing of osama bin laden. the president said america will support and encourage reform at every opportunity, and he also gave his assessment of the legacy of bin laden. >> bin laden was no martyr. he was a mass murderer who offered a message of hate, an insistence that muslims had to take up arms against the west and that violence against men, women, and children was the only path to change. >> nbc news chief foreign correspondent richard engel joins us live from cairo. correct me if i'm wrong, and i believe you also heard the speech, was there anything new in that from the president today? >> reporter: if you ask people in this part of the world, no, there wasn't much new. many people were disappointed. they were looking for more concrete steps, more american leadership, particularly to start the israeli/palestinian peace process. if anything could be new, it was a clear enunciation of u.s. policy, that if there's an obama doctrine, it is to support democratic movements across the middle east. that's not exactly new. we already saw that with sanctions on syria, with a military action, a war, against libya. so what it was is a clearer enunciation of a policy that people in this region already knew. what they were specifically looking for was a road map to restart negotiations between the israelis and the palestinians, for him to come out and say that he's going to get directly involved in negotiations, to put pressure on israel. that's what people in this part of the world were looking for, not just a treatise on democracy. >> absolutely. and that in light of the fact that george mitchell has recently left that position he held in terms of playing a role in bringing the sides together. he was also pretty critical, wasn't he, of the syrian leadership, condemning them for the way the president has allowed his own forces to attack members of the public in syria. >> reporter: there was certainly strong condemnation of syria and that statement i think that you read when he was saying that the u.s. policy now is to support democratic reforms and to oppose those who crack down on democratic protesters or pro-democracy protesters. syria is certainly guilty of that according to multiple human rights groups. 850 people, perhaps more, have been killed since the unrest began. even the syrian opposition was almost within minutes of the spet sending out e-mails thanking president obama for acknowledging the negative role that syria has been playing, cracking down on its movement, but saying they were looking for concrete action. they wanted a statement from president obama to say that assad must step down. even on the syrian front where he was highly critical, people thought he didn't go far enough. >> nbc news chief foreign correspondent richard engel, thank you very much. coming up, schwarzenegger and steroids. did cheating come naturally to the once scrawny boy from austria? erennials that'll turn up every year. trees and shrubs to give us depth. and fill it out with flowers placed in just the perfect place. let's spend less, but plant more. what do you say we plant a weekend, water it, and watch a summer spring up? more saving. more doing. that's the power of the home depot. right now, roundup weed & grass killer or ortho weed-b-gon max is just $8.88. web browsing on the new blackberry playbook? medicare supplement insu ♪lash! ah ahh... that's right, it runs flash. so unlike some tablets we could mention, you get the best of the internet, not just part of it. ♪ flash! ah ahh... ♪ we're following breaking news out of new york where dominique strauss-kahn has been indicted by a grand jury. the former international monetary fund chief is still before a judge at this hour awaiting a decision on bail. let's bring back msnbc legal analyst susan filan. we understand the judge has called a release. is that a good sign or bad sign for mr. strauss-kahn? >> i suppose it's a good sign. it means the court is seriously considering the bail application. he didn't just deny it. he wants to review the papers that have been submitted before him. essentially he's saying i'll take it under advisement. >> i'm assuming that means looking at the package, the bail package. >> very, very carefully. the judge said ends what a serious matter this is before i am, and there are great, great concerns on both sides that he has to weigh and balance very, very carefully. he doesn't want to get this one wrong. the world is watching. and the interest on both sides are very, very compelling. on the one hand he wants to protect the rights of the state to prosecute this case fairly. on the other hand, he wants to uphold the rights of the accused who is entitled to be admitted to bail if, again, his appearance in court can be assured and he isn't a danger to the community. what he's looking at is what's inside this bail package and does it smell right? does it look right? does it all add up? and is he being treated more leniently or or harshly than anyone in a similarly situated position? but who is ever in a similar situated position? we have never seen anything like this. >> the defense was also appealing to the other plethora of criminals in the past like bernie madoff. will that have worked with the judge, do you think? >> it works in the sense there is precedent for somebody of this kind of wealth being admitted to bail. but nobody with these kinds of ties to the world community, and that's the real issue with flight risk here. it isn't just the wealth. anybody with money, you can't just lock up anybody because they're rich, but it's these ties to the world community that -- and the whole conspiracy theory, could people around the world conspire to maybe drop down in sort of james bond style from the ceiling, cut all the cameras, knock out the armed guard, and escort him away. if anybody could three without a passport, arguely you could say somebody like this could. >> what about the possibility that him being out increases the prospect of perhaps some kind of attempt to get at the victim maybe through his legal team to offer her some kind of large amount of money that may persuade her to keep her silence? >> well, anybody that tries to get at the victim to buy her silence is going to be looking at a charge of bribing a witness or tampering with a witness. >> but you and i know it's never put in those terms -- >> no, no, no in a criminal case it's put in those terms. but once the civil suit is filed, whole different ball of wax. if this gets filed quickly, then this case can be talked about being settled on those terms. if the victim goes to the district attorney's office and says, it's just too much pressure, i can't take it, i don't want to go forward, the state essentially has no case without this victim's testimony. >> now, the grand jury has indicted him. i'm assuming, therefore, that this group of people who saw the evidence were persuaded that there's a case to answer and we have -- >> and they were persuaded on her testimony. >> just a moment because we have some new video here of dominique strauss-kahn in court. >> he looks better. >> he looks better. he's been shaved, and he's before the judge in this attempt to receive bail so that he can be released from custody. we know he was in rikers island and his lawyer is now standing and speaking. and he's obviously appealing to the judge. he certainly looks better than he did at the beginning of the week. >> he looks a whole lot better. he's clean shaven now. he doesn't just have that baggy jacket on. looks much better. he obviously was prepared to go to court today. he was certainly unprepared to go to court that last time he was in. >> this has caused a lot of argument between the french because the french feel, as you know they're not allowed to film a perp walk where in america this is a great tradition. >> i take some issue with that. they call it a perp walk. how are they supposed to get the guy from the precinct to the courthouse? are we supposed to build underground tunnels? are we supposed to say no cameras. we have a free press here. i don't think it's a perp walk. >> but the french are saying that the way he's been displayed to the public, unshaven, clearly unkempt, not like the head of the international monetary fund. he's been almost dressed up like a criminal. >> we're not in charge of his hair growth. he grew a beard overnight and he was locked up overnight for something he allegedly did. i take issue with the whole perp thing. we have a free press, and we certainly don't say you can't publish a photo with the first amendment. >> what do you think of this idea that he said to the judge through his lawyers that he's not actually that wealthy and he's now saying his wife has most of these assets. again, a smart tactic? >> you know, to me that isn't going to carry the day. i'm not that rich, please don't hold my money against me? the court isn't going to lock him up because he's got too much money. the court is going to lock him up because the court is afraid that he's going to flee. and, again, it isn't going to be because he's too rich. it's because they can't ensure he's going to make his future court appearances. that would be because of his ties to the world. usually taking somebody's passport, taking somebody's travel documents, putting them on an electronic monitoring system and a video camera would do it. so what makes this man different from any other man? that's the question that the court has to answer for itself. and somebody who has been in charge of the international monetary fund and is basically a global banker to the world is somebody that i don't think this court has ever had before it before. and that's what the court is weighing up now in chambers. >> susan filan thanks so much for your insights. now to more on the arnold schwarzenegger affair. before arnold entered the words of politics and hollywood he was a supremely successful body builder. is there anything we can learn from that period of his life that might inform what has happened more recently? joining me is the head of the sports nutrition business balco, victor conte, live from san francisco. good afternoon, sir. >> glad to be with you today, martin. >> thank you. now, you have worked over the years with many body builders. is it fair to say schwarzenegger would never have won seven mr. olympia titles without the consistent use of steroids and other performance enhancing drugs? >> i think arnold has openly admitted he has used performance enhancing drugs in the past. some say that even as an amateur in the late '60s before he came to the united states and won the seven mr. olympia titles and in today's climate it's really, i guess you would call it a mandate. i don't believe that any mr. olympia competitor could step on the stage today without the use of anabolic steroids. >> you say he's admitted it more recently. of course, at the time he lied consistently about whether he was using drugs. i remember those appearances in many joe waiter magazines where supplements were the sole nutritional benefit he ever claimed. >> well, that is kind of still the nature of the bodybuilding industry and the supplement business today, that they show these mr. olympia champions and other professional body builders and suggest that the rb they look the way they do is because of the nutritional supplements and it's just something that is unethical frankly. >> and untruthful. now, i know it may sound a little salacious but am i correct to assume that loading up on hormones like testosterone would have the effect of increasing one's sexual appetite, and do you think this may have played a role in schwarzenegger's notoriety around women? >> wel i think that most, not all, but most anabolic steroids do enhance la bee douibido or s. you have to put it in the context of other high profile celebrities that have had love children, rock stars like eric clapton and basketball player dr. j and reverend jesse jackson and on and on. so could it be a contributing factor? i think it certainly could because steroids do enhance your libido but i don't think that it's the primary factor. >> victor conte, thank you, as always, for sharing your expertise with us. we do appreciate it. >> thanks for having me. next, all the queen's horses and all the queen's men in ireland. ♪ [ male announcer ] you like who you are... the man you've become. and you learned something along the way. about the world. and yourself. ♪ this is the age of knowing what you're made of. and knowing how to get things done. so, why would you let something like erectile dysfunction get in your way? isn't it time you talked to your doctor about viagra? 20 million men already have. with every age comes responsibility. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. side effects may include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. you didn't get to this age by having things handed to you. this is the age of taking action. viagra. talk to your doctor. see if america's most prescribed e.d. treatment is right for you. [ male announcer ] in 2011, at&t is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible. in an effort to give you the best network possible. it's true. you never forget your first subaru. queen elizabeth taking some time during her island tour to indulge a little. she visited ireland's national stable to see some of the horses. it's widely known that the royals are an equestrian family and one of the queen's greatest passions is horse racing. next, a pack of liars and lies. why is the truth so hard to find in people in positions of power? e is using natural rubber, researching ways to enhance its quality and performance, and making their factories more environmentally friendly. producing products that save on fuel and emissions, and some that can be reused again. ♪ and promoting eco-friendly and safety driving campaigns. ♪ one team. one planet. bridgestone. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our econo. we're following breaking news here in new york. we're awaiting a decision on bail for dominique strauss-kahn. just a short time ago, the former international monetary fund chief was indicted by a grand jury. right now both sides are arguing their case before a new judge. strauss-ka strauss-kahn's previous request for bail was denied on monday and we'll give you the latest as it happens. in last night's episode of "the daily show" jon stewart poked fun at newt gingrich. newt was scolded by his own party for criticizing ryan's plan on sunday's "meet the press" by calling it social engineering. let's take a look at what stewart thought about it. >> sometimes you have to speak uncomfortable truths and stand by them. >> earlier in the day speaking on a conference call gingrich tried to pass the blame to the adversarial nature of "meet the press" saying, quote, i didn't go in there quite hostile enough because it didn't occur to me that going in that you'd have a series of setups. that wasn't me randomly saying things. these were very deliberate efforts to pick fights. >> you know what, i get it. i get it. you go on these political shows, you don't know what to expect. it's scary. they can be very intimidating newt. >> welcome back. >> good to be with you. >> this is your 35th appearance on the ram. >> aside from the hill lart, stewart does bring up a good point, why is it all too often those in positions of power feel the need to skirt the truth and hide behind falsehoods which brings us to our next guest, pulitzer prize winning author james b. stewart has examined the biggest lies of the last decade. among the perpetrators, barry bonds, scooter libby, bernie madoff, and martha stewart. their fibs are gathered together in "tangled webs: how false statements are undermining america from martha stewart to bernie madoff." good afternoon, jagmes. >> good afternoon. >> in simple terms what is it about these very powerful, well-resourced individuals who seem incapable of telling the truth. >> it's the mystery that led me into the research for this book. i started thinking they would be the last people to lie because they have everything and that means they have everything to lose. i concluded 180 degrees the opposite. it's the powerful, the waely, the celebrated who may be more likely to lie. first of all, everyone around them tells them what they want to hear. no one contradicts them. they get away with it. they have gotten away with it in the past and the simple answer why they do it, they think they're going get away with it again. >> in thinking of someone like bernie madoff, i recall a recent newspaper interview where he said the only reason he continued the ponzi scheme was because he wanted his clients to keep benefiting. >> he's continuing to lie -- he seems incapable of telling the truth. i think at some point people live a lie constantly the burden of that begins to fuse into their own reality. i have looked in great detail about why people do what they do. you see short-term gain and, of course, as one character in the book says, once you start to lie, you have to keep on lying unless you're prepared to be honest. >> and it aggregates over time. >> it gets bigger, more complicated. in a way it's like a ponzi scheme. the lies swell and swell until they finally burst. >> as i read the book, i almost came to the conclusion that lying in this country is almost accepted as part of the pursuit of success. it's almost as if you can't get anywhere, so sports people lie about the use of drugs and steroids. bankers on wall street lie about fake loans and fraudulent transactions. is it true to say that lying is now almost accepted as part of the armory in someone's pursuit of an achievement. >> i'm afraid so. i think that's why we're reaching a crisis point. one of the reason i've become so passionate about the subject is we have to acknowledge it, face it, and find ways to stop it. it's undermining different aspects of america, the very ideal of america where we strive to be a nation where everyone is equal before the law. >> when you say it's undermining america, how? how so? >> well, in so many ways, from individual lives that were destroyed, from a democracy that depends on truthful statements from executives for voters to make intelligent decisions, for investors to know where to put their capital, billions of dollars has been lost because of lies in recent laws. and the judicial system depends on truth telling. if you don't have honest witnesses in court, you can't prosecute crime. all you end up with prosecutions for false statements. boury bonds is an example. it took over eight years from the time he told the lies. >> horrendous. another case you focus on is that of scooter libby. what did you find out about the bush administration as you investigated his case? >> well, i was deeply disappointed as a citizen and as a journalist because president bush had said he wouldn't toleratings in security breaches in his administration. he wouldn't tolerate lying. he ended up commuting scooter libby's sentence. he never spent a day in jail. and then when presented with evidence of other administration officials, especially carl rove, richard armitage in the state department by the special counsel in an extraordinary gesture, he did nothing. the hypocrisy to me was very disappointing and it sent a terrible message to everyone in law enforcement and in america that, in fact, he's going to condone lying. not just lying, perjury. >> james stewart, thanks so much for joining us. thank you. the mighty mississippi river continues to bring havoc and widespread flooding in mississippi causing one fatality and leaving residents to wonder what they will find when the water finally begins to recede. nbc's thanh truong has more from vicksburg. >> good afternoon to you. the mississippi river in vicksburg finally crested this morning at 7:00 local time. it crested at 57.1 feet, just a few inches short of the 57.5 feet originally forecasted. nevertheless, it does send a new record for flooding in this area. the previous record was set back in 1927. even though the river has stopped rising, that doesn't mean the disaster is over for the families that are affected. throughout the state of mississippi more than 4,000 people have evacuated. in vicksburg alone up to 1400 homes and businesses are expected to be under officials at this point are expecting a water to stay in those areas for at least another two weeks so it will be some time until families and neighbors are able to get back into theirs homes and neighborhoods to assess the damage. included in that group is haley barber. his city is under seven feet of water. under a silver lining it lays with the army levy system here in vicksburg. it has so far with stood the test a good news for region in so need of it. >> absolutely. thanks so much. >> now to our play of the day. it involves one of our own at msnbc. veronica de la cruz. you add surprise guest onset with you this weekend in the very wee hours of the morning that image has gone viral, tell us about it. absolutely martin, 1:30 in the morning. i was here doing news updates and suddenly comedians all wandered into the studio. i guess they were upstairs watching saturday night live because ed holmes was on the show and ed holmes as you know was on the hang over as was zach and they all wandered in. they sat behind me and video bombed the msnbc studios. it t was quite an experience. >> veronica thank you very much. we just had breaking news from the court here in new york. that is that dominique strauss-kahn has been granted bail. he has been granted bail. that news just in. we will be right back. >> we have breaking news here in new york where former imf chief dominique strauss-kahn has just been granted bail. let's go live to correspondent at the courthouse, jeff, on what terms has he been released? >> hi, martin. yeah this happened just moments ago. the judge releasing dominique strauss-kahn on these conditions. he has to post $1 million cash bail. he has to post a $5 million insurance bond. he has to sur vender all travel documents. and he also has to submit to what he actually offered. that is 24/7 monitoring by electronic ankle bracelet and by video monitoring plus an armed guard outside his door. so dominique strauss-kahn could be out of the courthouse actually any moment. as soon as they fill out their paperwork in court, martin, the defense said that strauss-kahn's wife rented an apartment in an undisclosed location here in manhattan. that is where he will live but he will post $1 million cash. $5 million bond. surrender all travel documents. as you know prosecutors said with his wealth and with political power he could skip town and head back it france and they feel like he would never come back. so this is a loss for prosecutors. win for defense as dominique strauss-kahn heads, to well a new home, a temporary home, here in manhattan. >> but i heard the judge said if there is the slightest breech of conditions, this will be withdrawn and he will be back at reichers island. >> right, correct thp remember they arrested him on board an airplane heading out of town. now the defense says we have an explanation for that. he bought the tickets days and days and days earlier. so he didn't just in a haste commit a crime, call up the airline and by a ticket. but still the nypd arrested him on a plane. that clearly did not have any effect with the judge. >> do we know if there was reaction from mr. strauss-kahn in court as the judge delivered verdict on the bail? >> i'm not aware of that. i'm not aware of that yet. there is a pool camera inside we will get tape back as soon as they run the tape back at our trucks. it is important to note his wife and daughter are here in new york and supporting him as i mentioned the wife rented this apartment to live with him in here in new york while they go through the process. >> just behind you jeff i can see bank of microphones. does that mean we expect him or council, lawyers to speak? >> i find that doubtful he would speak. though you never know in this town. his lawyer is actually out of town. so bill taylor, his co-counsel is here handling the case. we are deployed. we are one of those cameras over there. one of the many. international press, there are literally hundreds and hundreds of reporters here covering this. >> thank so much.