About to back up that breathtaking performance with nother victory here. Will have to get two putts to do it. That should be enough for mcilroy. Nick this is right on sergios line. Jim the only thing that could cost him the title now is he forgets to put that back. Nick highly unlikely. He seems to be control of the situation today. I love the way its a little more than aggressive, isnt it . Theres a freedom to be that aggressive. To stand up and the confidence this is a narrow golf course. Think about trying to beat this guy on a slightly wider golf course. Good luck. Like we say, if he keeps this Just Brilliant form, hes going to be the number one favorite into all the majors for the next five years or more. Jim hes going to be a strong one for the coming days, thats for sure, as we all head to valhalla and the pga. And then, of course, at augusta eight months out hell be going for the career grand slam. And sergio nudges it up there inside of a foot, which will secure him solo second. Nick yeah, its tough. The reads werent quite the same. A couple of strokes werent quite the same. Jim just one birdie on the day. It came at the ninth. Got him back even with mcilroy at that time and eight pars and a bogey coming home. Its going to be a round of 6 once he knocks this one in. Nick he set a lofty goal of 63 but didnt need it. Jim and look who returns to number one. Ory mcilroy at his brilliant best again. Nick keep that one. No, thats his tradition. Jim david . David thank you very much, jim, rory. The open championship, the bridgestone invitational world championship. You have to feel pretty good going into the pga championship. Oh, yeah, yeah, what im really proud of this week is just following up the open with a performance like this. I said straight after i didnt want any letdown, i wanted to just keep going and performing well until the end of the season. Its great to come to one of my favorite tournaments of the world. I love the golf course here in akron, and to perform like this, im pretty satisfied. David well, congratulations on another great win. We look forward to seeing you next week. Thanks. David thanks, rory. Jim now we head to horse country. Not that far from churchill downs. Hell go for a little triple crown. Open championship, world Golf Championship and a pga in three consecutive tournaments. Nick hes the 50 million thoroughbred. Jim he is. Nick sure is, isnt he . Its the 100 million, whatever the top prize is, i dont know. Jim there are the fedexcup standings after this competition. Rory, 66. To take it by two. Sir nick, cant wait for the next week. Nick thank you, james. Yeah, it will be great. Jim folks, well see you from valhalla and louisville, kentucky, and the pga championship. And well be watching rory mcilroy. He is on some kind of roll. He takes another title here in front of the worlds best players. We showed people a survey that stacked fios up against comcast. Whats it like paying for internet rated 6 out of 7 in Customer Satisfaction . Not good, its not the best. No, its not fun. Look at it this way, youre kind of on top. If i was like this, all day. Switch from the bottom to the top and see why millions of satisfied customers have made fios 1. Sign up for a verizon fios triple play online with a 2year agreement and get an amazing 400 back plus a free lg g tablet or up to 200 off any tablet from verizon wireless. But hurry, dont wait this great offer ends august 10th. Captioning funded by cbs and ford stahl financial analysts around the world fear china might be sitting on the biggest real estate bubble in human history. Wheres the proof . We found what are known as ghost cities. Look at these brand new towers with no residents, desolate condos and vacant subdivisions uninhabited for miles and miles. And miles. Simon you have been called an evil genius. Yes, yes, i have. Simon hes talking about Wolfgang Beltracchi, a forger so brilliant that, for decades, he made millions while his paintings were hung in museums around the world. But his brilliance wasnt that he could copy a rembrandt or a cezanne; its that he imagined paintings they might have done, even shot fake photographs to document them. See that woman in front of those paintings . Shes beltracchis wife and partner in crime. There was no commercially sold hot sauce before tabasco. Edmund invented the category. Gupta that would make this the first family of hot sauce. laughs that sounds real good. Gupta the first family of hot sauce turned tabasco into one of the oldest and largest familyowned businesses in the country. Im looking at the color. And thats why ive got an incandescent light. I want to look at the color, i want to look at the seed. Just let it sit there for a minute. And then, the heat kicks in. Tastes like candy. Gupta tastes like candy . Smells like money. laughs kroft im steve kroft. Stahl im lesley stahl. Safer im morley safer. Simon im bob simon. Pelley im scott pelley. Those stories tonight on 60 minutes. Two medium cappuccinos lets show em what a breakfast with whole grain fiber can do. One coffee with room, one large mocha latte, medium macchiato, a light hot chocolate hold the whip, two espressos. Make one a double. Shes full and focused. [ barista ] i have two cappuccinos, one coffee with room, one large mocha latte, a medium macchiato, a light hot chocolate hold the whip, and two espressos one with a double shot. Heh, heh. Thats not the coffee talkin. [ female announcer ] start your day with kellhoggs frosted mini wheats cereal. With whole wheat goodness on one side and a hint of sweetness on the other, its a delicious way to get the nutrition you want. Its a delicious way while a body in motion tends to stay in motion. Staying active can ease t if you have arthritis,. This can be difficult. Prescription celebrex can help relieve arthritis pain, and improve daily physical function so moving is easier. Because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain. And its not a narcotic. You and your doctor should balance the benefits with the risks. All prescription nsaids, like celebrex, ibuprofen, naproxen and meloxicam have the same cardiovascular warning. They all may increase the chance of heart attack or stroke, which can lead to death. This chance increases if you have Heart Disease or risk factors such as high Blood Pressure or when nsaids are taken for long periods. Nsaids, like celebrex, increase the chance of serious skin or allergic reactions, or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may cause death. Patients also taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers. Dont take celebrex if you have bleeding in the stomach or intestine, or had an asthma attack, hives, other allergies to aspirin, nsaids or sulfonamides. Get help right away if you have swelling of the face or throat, or trouble breathing. Tell your doctor your medical history and ask your doctor about celebrex. For a body in motion. Looks like were about to board. Mmhmm. Im just comparing Car Insurance rates at progressive. Com. Is that where they show the other guys rates, too . Mmhmm. Cool. Yeah. Hi. Fil boarding call for flight 294. [ bells ring on sign ] [ vehicle beeping ] whos ready for the garlic festival . This guy bringing our competitors rates to you now, thats progressive. Stahl for three decades, china had been nothing short of a financial miracle, a state controlled economy that managed to navigate its way out of the tatters of communism to become the worlds second largest, deftly managed by Government Policies and decrees. But now, many in the financial world are looking nervously at china. Thats because one sector chinese authorities concentrated on was real estate and construction and, as we first reported in march last year, that may have created the largest housing bubble in human history. If you go to china, its easy to see why theres all the talk of a bubble. We discovered that the most populated nation on earth is building houses, districts and cities with no one in them. So, this is zhengzhou, and we are on the major highway or the major road, and its rush hour. Gilletulloch yeah. Stahl and its almost empty. Gillem tulloch is a Hong Kong Based financial analyst who was one of the first to draw attention to the housing bubble in china. Hes showing us around the new Eastern District of zhengzhou in one of the most populated provinces in china, not that youd know it. We found what they call a ghost city of new towers with no residents, desolate condos, and vacant subdivisions, uninhabited for miles and miles and miles and miles of empty apartments. Why are they empty . Ive heard that they have actually been sold. Tulloch theyve all been sold. Theyve all been sold. Stahl theyve all been sold . Theyre owned. Tulloch absolutely. Stahl owned by people in chinas emerging middle class who now have enough money to invest but few ways to do it; theyre not allowed to invest abroad, banks offer paltry returns, and the stock market is a roller coaster. But 16 years ago, the government changed its policy and allowed people to buy their own homes, and the flood gates opened. Tulloch so what they do is they invest in property, because property prices have always gone up by more than inflation. Stahl and they believe it will always go up . Tulloch yeah, just like they believed in the u. S. Stahl actually, Property Values have doubled, tripled and more, so people in the middle class have sunk every last penny into buying five, even ten apartments, fueling a building bonanza unprecedented in human history. No nation has ever built so much so fast. How important is real estate to the chinese economy . Is it central . Tulloch yes. Its the main driver of growth and has been for the last few years. Some estimates have it as high as 20 or 30 of the whole economy. Stahl but theyre not just building housing, theyre building cities. Tulloch yes. Thats right. Stahl giant cities being built with people not coming to live here. Tulloch yes. I think theyre building somewhere between 12 and 24 new cities every single year. uwutahl unlike our Market Driven economy, in china, its the government that has spent some 2 trillion to get these cities built, as a way of keeping the economy growing. The assumption is, if you build it, theyll come. But no ones coming. This is really completely, totally empty and it goes up. Gillem took us to this Shopping Mall thats been standing vacant for three years. Can i find this all over china . Tulloch yes, you can. Theyve simply built too much infrastructure too quickly. Stahl but i see kfc behind you. I see starbucks over there. I see some other very recognizable american franchises coming in here. At least they. Does that mean they have faith that this is going to ignite . Tulloch no, these are all fake signs, just to get potential buyers the impression of what it might look like if they moved in. Stahl theyre not real . So, kfc didnt buy this space or rent this space . Tulloch no, they havent. Stahl starbucks . Tulloch no. Stahl they just put the sign up . Tulloch thats right. Stahl its all makebelieve nonexistent supply for nonexistent demand. Look at that swarovski, piaget. Theyre hoping for high end, too. Tulloch h m. Zara. Stahl laughs and its all potemkin. Tulloch yeah. Stahl its surreal and its everywhere, like the city of ordos in mongolia built for a Million People who didnt show up. And no, youre not in england. Youre in thames town, a Development Near shanghai built like an english village. Tulloch and it was finished, i think, around five or six years ago. And it must have cost close to a billion u. S. Dollars. And youll see, its Still Standing there empty. Stahl well, ive heard that there is some industry there or some business, one business there. Tulloch marriage. Stahl wedding pictures and whats more uplifting than a wedding, or ten . You can see these empty developments on the edge of almost every city in china. What about the idea that china is urbanizing . People are flooding into cities or want to, anyway, by the hundreds of millions. And that this really is a smart move build the housing to accommodate the urbanization process. Tulloch well, so, people are being moved into the cities. But that doesnt necessarily mean that they can afford these apartments which, you know, cost u. S. 100,000 or whatever. I mean, these are poor people moving into the cities, so theyre building the wrong sort of apartments. Stahl and whats worse to build all these massive cities, theyve had to tear down what was there before, clearing rice fields and displacing, by some counts, tens of millions of villagers. On the edge of zhengzhou, gillem and i came upon a strange sight. Im just watching what theyre doing. Do you have any idea . Tulloch i think theyre trying to recycle the bricks. Stahl these villagers are salvaging whats left of their homes, bulldozed to make room for more empty condos already encroaching in the distance. There are all these empty apartments over here. Can they conceivably move into those upscale places . Tulloch most people in china live on about less than 2 a day. And these apartments probably cost upwards of 50,000 or 60,000 u. S. , so its very unlikely. Stahl what will happen to them, do you think . Tulloch theyll be forced to relocate somewhere. I have no idea where theyll go. Stahl these are the immediate casualties of the building boom. And theres another problem analysts warn that all this building has created a bubble that could burst. So, if the bubble bursts, whos left holding the bag . Tulloch there are multiple classes of people that are going to get wiped out by this people who have invested three generations worth of savings so grandparents, parents and children into properties will see their savings evaporate. And then, of course, theres 50 Million Construction workers who are working on all these projects around china. Stahl the prognosis of a bubble about to burst isnt only coming from financial gloomand doomers. We heard it from the most unlikely source. Are you the biggest home builder in the world . Wang shi i think. Maybe. Stahl you may be . Wang yes. Only the quantity, not quality. Stahl wang shi is modest, but his company, vanke, is a multibilliondollar real estate empire, building more homes than anyone in china. He was born on the frontlines of communism and joined the red army. But he secretly read forbidden books about capitalism, so that when china liberalized its economy, he rushed to the frontlines of the free market. Even he thinks todays situation is out of control. Are homes in china too expensive today . Wang yeah. Stahl heres a number that i saw. A typical apartment in shanghai costs about 45 times the averagd residents annual salary. Wang even higher, even higher. Stahl what does that mean for your economy if its just too expensive for the vast majority of people to buy . Wang i think that dangerous. Stahl dangerous. Wang thats the bubble, so i think thats the problem. Stahl is there a bubble . Wang yes, of course. Stahl there is a bubble, and the issue is will it burst or not . Thats the big issue. Wang yes, if that bubble. Thats a disaster. Stahl if it burst . Wang if it burst, thats a disaster. Stahl to try and prevent the disaster, the Chinese Government decided to act. Heard of their onechild policy . Since 2011, china has had what amounts to a oneapartment policy, where its very hard to buy more than one apartment in major cities. Because of this, prices plunged. The bubble was being tamed. And yet, the taming was creating all kinds of unintended consequences. Are Many Developers in debt . Wang yes, yes. Stahl and are many stopping development in the middle of projects because they dont have the money to go forward . Wang yeah, thats problem. Thats a huge problem. Stahl a problem because the slowing down of construction led to a downturn in the overall economy. Unfinished projects dot china, and not just apartment buildings. Look at this. Can you believe it . Analyst anne stephensonyang, who has traveled across china, showed us a giant project all but abandoned in the port city of tianjin with concrete skeletons as far as the eye can see. The plan is to build a new financial district to rival manhattan, including a Lincoln Center and a world trade center, only taller. But it all seems frozen. Anne stephensonyang theres supposed to be a Rockefeller Center here. I hope they have a christmas tree, too. Skating rink. Stahl city officials told us everything stopped because Developers Want to build all the facades at once to match. But on the ground, we heard a different explanation. Workers told us that many of these buildings havent had any work done on them for weeks, months, as if the Developers Just dont have the money to go on. Stephensonyang its true. You see that happen first. The Migrant Workers will go home. Thats often the first sign that the debt crisis is starting. Stahl the debt crisis . Stephensonyang well, when you stop paying your bills, then everything stops. Stahl it could become a debt crisis because of the huge loans most of the developers took out. If they cant repay them, the whole economy will seize up. The governments great fear is that all this could lead to social unrest, and thats not hypothetical; when regulations caused property prices to drop, it infuriated all those homeowners who watched the value of their nest eggs plummet. And theres already been some demonstrations over real estate around the country. Wang yes. Stahl have you had demonstrations against your showrooms anywhere, youre company . Wang often stahl so often, wang shi shudders to think what would happen if the bubble actually burst. Wang if that bubble break, that maybe who know what will happened . Maybe that. Maybe the next arabic spring. Stahl arabic spring. You mean people coming out and demonstrating. Wang mmhmm. Stahl a lot of economists say that its too big for even this government to control. Wang mmhmm. I believe that top leaders have enough smart to deal with that. I hope stahl youre doing this. Wang but thats uncertain. Stahl meanwhile, people who can afford it are still buying as much real estate as they can. Theyre even finding ways around the oneapartment restriction in big cities. Cant buy in beijing . Just cross the city line and the boom is in full swing flyers advertising new projects, potential buyers crowding buses to see new construction, and new owners line up to register their new apartments. Like us in our bubble, they just dont believe the good times will ever end. Simon Wolfgang Beltracchi is a name you may have never heard cbs money watch update sponsored by lincoln financial. Calling all chief life officers. Glor good evening. Switzerland says it will not impose trade and banking sanctions on russia. An explosion at a gm parts supplier in china this weekend killed at least 68 people. And Goldman Sachs is reportedly close to buying a steak in the messaging service perzo, an alternative to bloomberg. Ive jeff glor, cbs news. Its great on strawberries, apples. Bananas. Rice cakes. Raspberries. Toast [ kelly ] jif hazelnut spread makes anything your new favorite thing. Spoons which is why this choosy mom chooses jif. Remind me to tell her happy anniversary. [ cortana ] next time you talk to caroline, ill remind you. [ siri ] oh no, i cannot do that. Oh, and remind me to get roses when im near any flower shop. Sure thing. Remind you when you get to flower shop. I cant do that either. Cortana, its gonna be a great night. [ beep ] oh wow thanks for the traffic alert. I better get going. Now that is a smart phone. 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Simon Wolfgang Beltracchi is a name you may have never heard before very few people have but his paintings have brought him millions and millions of dollars in a career that spanned nearly 40 years. They have made their way into museums, galleries and private collections all over the world. What makes him a story for us is that all his paintings are fakes. And what makes him an unusual forger is that he didnt copy the paintings of great artists, but created new works which he imagined the artist might have painted or which might have gotten lost. As we reported in february, connoisseurs and dealers acknowledge that beltracchi is the most successful art forger of our time, perhaps of all time; brilliant not only as a painter, but as a con man of epic proportions. Are you the best forger in the world . Wolfgang beltracchi maybe, yeah. In the moment. laughs simon he agreed to meet with us in cologne and took us to a small wooden bridge outside his home. He volunteered to show us how he works. He was forging a max ernst, the german surrealist of the early 20th century. Beltracchi was painting on this wooden bridge because ernst had done much of his work on a wooden floor. What do you think this max ernst would be worth . Beltracchi this one . Simon yeah. Beltracchi 5 million, i think. Simon 5 million. And you can do it in three days . Beltracchi yeah, oh, yes, yes, sure, or quicker. Simon beltracchi estimates he has done 25 max ernsts. He is not copying an existing work; hes painting something he thinks ernst might have done if hed had the time or felt like it. So you would be doing a cezanne that cezanne never painted, but that you thought he might have wanted to paint. Beltracchi yes, exactly. Simon so, in a sense, every beltracchi painting is an original. He just lied about who painted it. He says he has forged a hundred artists and can do just about anyone. Could you do a rembrandt . Beltracchi yeah, sure. laughs simon could you do a leonardo . Beltracchi yeah, yeah, sure. Simon who couldnt you do . Beltracchi maybe bellini. laughs bellinis really difficult. Simon he has sold his forgeries, of course, but says he can still see some of them because theyre on public display. Have you seen your paintings, your forgeries, hanging in museums . Beltracchi yeah. All the museum, you know. laughs i think i am one of the most exhibited painters in museums of the world. Simon you are one of the most exhibited painters in the world . Beltracchi yeah, yeah. Simon thats quite an accomplishment. Beltracchi yeah. Simon you might have seen his stuff in new yorks metropolitan museum, or in the hermitage in lausanne, to name just a couple. You can also see them in the homes of the 1 . Actor steve martin bought this one. Beltracchis forgeries have also made it into art books listing the best paintings of the 20th century, and have been sold in many of the worlds top auction houses. I have seen beltracchi forgeries on the cover of christies catalogues. Jeff taylor yes, yes. Simon thats pretty good, isnt it . Taylor it is really good, it is really good. Simon jeff taylor teaches Arts Management at purchase college. He says, though there is no shortage of gifted forgers, beltracchi holds the title. He has made more money than any other art forger ever. Taylor he combined all the nefarious techniques of everybody who came before him, and made very important innovations in exactly what is essential. Simon you have called him an evil genius . Taylor yes. Simon so aside from being a very talented painter, he was also a very accomplished con man . Taylor absolutely one of the best. Simon he started making a few bucks in the game when he was quite young, but his career really took off when he married helene, a perfect co conspirator, in 1993. You were really the bonnie and clyde of the art world, werent you . Beltracchi yes, bonnie and clyde, yeah without weapons, only with pencils. Simon but you were a pair, you did everything together. Helene yeah. Beltracchi everything together, yes, yes. Simon they invented a story that fooled them all. Helene said her grandfather hid his Art Collection at his Country Estate in germany before the war to protect it from the nazis. When he died, she said, she inherited it. But there was nothing to inherit, because there had never been a collection. Every one of the works had been painted by Wolfgang Beltracchi. Helene when i said its a collection of my grandfather, it was okay. Simon it was okay, but it wasnt true. Helene no, it wasnt true. But the others never asked me more. Simon because it was a good story. Helene yeah. Simon and you were a good actress in telling the story. Helene maybe. laughs simon she and wolfgang even created fake labels from a real german dealer, which they put on the backs of paintings, staining them with coffee and tea to make them look old. They toured flea markets like this one to find canvases from the right periods. Tell me what were doing here. Tell me what were looking for. Beltracchi were looking for a painting like that, because we need something that is 1919, 1910. See, thats a french one. Simon you can get that completely clean . Beltracchi yeah, yeah, completely clean, yeah. Simon they sent paint pigments to labs to make sure they had been available at the time the artist had painted. You were really perfectionists, werent you . Beltracchi yeah, yeah, sure. Simon and hearing you talk, you were really good criminals. Beltracchi yeah, yeah. Helene yeah. Beltracchi yeah, its true. laughs simon to back up their story, they found an old box camera like this one, dressed helene up to look like her grandmother, hung up some forgeries behind her, and took some bogus photos on prewar paper. Taylor to make it look like an old photograph, which is, in rld,n the documentation aspect, is golden. Archival photographs are sort of the. The el dorado. Simon now, when you see Something Like that, do you say youve got to hand it to him . Taylor yes, yes, you do. Simon he was off and running. Taylor he was off and running. Simon running to luxurious estates they bought in germany and in france, vineyard included. They gave parties gatsby would have loved and they traveled the world in style, by land or by sea. Bonnie and clyde had taste. Beltracchi this is. Was my boat, yeah. Simon i dont think youre translating correctly. This isnt a boat, its a yacht. Beltracchi was riding high and thought he would stay up there forever. He was turning out forgeries like this max ernst, which went for 7 million. But then in 2010, he got busted by this tube of white paint. The dutch manufacturer didnt include on the tube that it contained traces of a pigment called titanium white. That form of titanium white wasnt available when ernst would have painted these works, and beltracchis high ride was over. Jamie martin, one of the worlds top forensic art analysts, uses science to help determine whether or not a painting is genuine. We asked him to examine this beltracchi forgery for us. Jamie martin his fakes are among the best fakes ive seen in my career. Very convincing, very well done. Simon and what youre saying is that, basically, he got away with it for 40 years because nobody was examining them properly . Martin nobody was examining them closely enough. Simon he showed us what he does, how he uses a stereo microscope to study every millimeter of a paintings surface, and to select and remove samples. You actually take little pieces off of the painting . Martin we take very little pieces. We take only the minimum amount thats required, smaller than the width of a human hair. Simon he uses what is called raman spectroscopy, which can help detect historically inaccurate pigments. Thats what cut beltracchis career short. He was sentenced to six years in a german prison; his wife, helene, to four. But the chaos they wrought has not been undone. Now, galleries and auction houses who vouched for his forgeries have been sued by the collectors who bought them. You have. In fact, youve really upset the art world, havent you . Beltracchi yeah, sure. They all hate me, these experts now. Simon do you think the experts are just incompetent, or that they are also frauds, that they pretend to know more than they know . Beltracchi no, no. Nearly all the experts we have met, we met, they were serious, really serious. Their only problem was that i was too good for them. Yes, that was their problem, thats all. Simon and with all the legal problems they now have, many experts are very hesitant to use their expertise. Taylor i think theyre terrified. I think that beltracchi particularly put them in a very nervous position. Simon so being an art expert today is a risky usiness . Taylor its so risky that a lot of authentication boards have shut down. Theres just simply too much legal peril out there. Its one of the reasons why a lot of experts will not give their opinions. Simon many foundations representing major artists like andy warhol, keith haring, and Willem De Kooning are refusing to authenticate works brought to them at all. Francis oconnor is the worlds top Jackson Pollock expert. He says he can spot a fake pollock in a second, but these days is keeping his opinions to himself. What if i were to come to you and say, this has been presented to me as a pollock. Francis oconnor someone comes to me about once a week. I just let it go by. Simon let it go by . Oconnor in other words, ignore it. Simon im not quite sure i understand. If i come to you and i say, hey, this has been presented to me as a pollock, and you can see right away that it isnt, youre not going to tell me, this is not a pollock . Oconnor i would be very hesitant to give any opinion at that point, because of the legal situation. Simon where do i go to see whether my painting is a real pollock or not . Oconnor there is nowhere to go. Simon when collectors do have suspicions about their paintings, one of the few places they can go is Jamie Martins lab. Ballpark figure if youve examined, say, 100 paintings, how many of them are fakes . Martin i would say probably 98 are fake. Simon no kidding. Martin thats just the numbers. Simon at his trial in 2011, prosecutors said beltracchi had created 36 fakes which were sold for 46 million. But art historians believe, and beltracchi told us, that there may be more than 300 of his fakes all over the world. German police have uncovered 100 so far, and the numbers keep climbing. Do you think well be uncovering fake beltracchis for years to come . Taylor absolutely. Theres going to be many more out there. But one thing we know about fake art works is, short of having them burned or destroyed, they have a strange way of finding their way back onto the market, generation after generation. Simon and no one disputes that they are awfully good, beautiful. This 7 Million Dollar fake max ernst is being shipped back to new york. Its owner decided to keep it, even after it had been exposed as a fake. He said its one of the best max ernsts hes ever seen. Beltracchi spent a year and a half in this grim penitentiary, but is now allowed to spend many days at home, where he is launching a new career. Beltracchi is painting again and is signing his works beltracchi. He needs to get his name out there, which is probably why he agreed to talk to us. Hes lost everything and has settled multiple lawsuits totaling 27 million. Did you ever think that you would wind up in prison . Beltracchi no. Simon at what point did you realize, uhoh, im in trouble, this is over . Beltracchi when i was there in prison. laughs simon not before then. Beltracchi not really, no. Simon do you think you did anything wrong . Beltracchi yes, i use the wrong titanium white, yeah. Now sabs sports update presented by pacific life. Sergio garcia held a threestroke lead through three rounds of the bridgestone invitationa. But rory mcilroy caught him to win by two strokes. Rory is now the new worlds number one. Tiger woods withdrew from this tournament today after reaggravating a back injury. His status for next weekends pga championship, which airs here on cbs, is in doubt. For more sports news and information, go to cbssports. Com. This is steve obermeyer reporting. Is part of the fun. All it takes is a little advice and a lot of planning. A Retirement Income from pacific life can help you live comfortably after you stop working. For more than one hundred and forty five years, weve been helping people achieve longterm financial security. Learn how to create a Retirement Income at pacificlife. Com. Pacific life. The power to help you succeed. [ male announcer ] hurry in and spend 399 or more on major appliances, and get a lowes gift card worth up to 1,000 by mail. And get a lowes gift card worth up to 1,000 by mail. Thats why we get right to work, every morning. Preparing em fresh, right in store. Only thing better than creating this cool, crisp, colorful rainbow. Is watching you work your sandwich magic. Making a oneofakind creation bursting with flavor. Were all about finding unique veggies that give your sandwich even more life. Like avocado, spinach, red onion. So come on in and get your veggie on. Subway. Eat fresh. Stahl now, cnns sanjay gupta, on assignment for 60 minutes. Gupta tabasco is more than a mere condiment, its an american artifact. The sauce was first made in 1868, and within a few years it was being served in the white house. Since then, its made its way to nearly every country in the world. Its one of americas most prolific exports, which is why we decided to take a closer look. And, as we first reported in march, what we discovered is that every bottle of tabasco has been made by the same family, a very private family, producing their famous sauce, known locally as cajun ketchup, on their very own private island in the middle of cajun country for five generations. The mcilhenny clan has done it by adhering to 150 years of tradition in how they make their sauce, and also what they say about it publicly, which is typically very little. Letting 60 minutes come in with our cameras and our questions was a break from tradition. Avery island is located in the bayous of louisiana, west of new orleans. Only two miles wide, the island has been owned by the mcilhennys and their family for almost 200 years. Tony simmons this is where we take our pepper mash. Gupta its 9 00 a. M. That means tony simmons, the fifthgeneration c. E. O. , is heading to the warehouse for his daily taste test. Farmers all over the world grow the peppers, mash them, and ship it all back to avery island. You do this every morning that youre here . Simmons every morning im here, i check these barrels, if theyre making mash. Wheres this from . Colombia. Gupta that means every bottle of tabasco in the world has his personal seal of approval. Simmons so im looking at the color, and thats why ive got an incandescent light. I want to look at the color, i want to look at the seed. And when i taste the mash, usually, what im looking for is i get some salt out on the edges of my tongue, and then about the time you think, well, this isnt that much of a big deal, the heat comes late. You want to try . Gupta sure. Im. Im watching you first, though. How was it . Simmons i do this every morning. Its not so bad for me. Gupta is that a good chunk . Simmons yeah, thats good. You just put it on the front of your tongue, and then just let it sit there for a minute gupta if you think tabasco is hot, the raw ingredients are ten times hotter. Simmons and then the heat. The heat kicks in. Gupta yeah, it does. Simmons so. Gupta wow, tony. I have newfound respect. Peru. Simmons tastes like candy. Gupta tastes like candy . Simmons smells like money. laughs honduras. Gupta are there secrets in here, though, that you dont want the rest of the world to know . Simmons our formula is only red tabasco mash, vinegar, and a little bit of salt, so i dont know how many secrets we could really have with a process that simple. Gupta it was simmons great great grandfather, edmund mcilhenny, who created the sauce shortly after the civil war. He began selling his concoction in old cologne bottles in new orleans, calling it tabasco. Simmons there was no commercially sold hot sauce before tabasco. Edmund invented the category. Gupta he is sort of the father of hot sauce . Simmons hes the father of hot sauce. Gupta that would make this the first family of hot sauce. Simmons laughs that sounds real good. Gupta the first family of hot sauce turned tabasco into one of the oldest and largest familyowned and operated businesses in the country. Youre the fifth generation Family Member to run this business . Simmons mmhmm. Gupta how unlikely a story is this . Simmons only 30 of companies outlive the founder or move to a second generation. And only 12 of companies actually make it to the third generation. So, for us to be the fifth generation and still be doing this is a much smaller subset, im sure. Gupta from the beginning, the company has always been run by, and for, Family Members. The top management, board and 130 stockholders are all mcilhenny descendants. Estimates are that sales are close to 200 million a year. Am i in the right ballpark . Simmons youre probably in the right town. laughs gupta could you put me in a better ballpark . Simmons no. Like i said, we just dont give out financial information. Gupta what about margins, Profit Margins . Can you talk about that . Simmons nope. Gupta none of it . Simmons none of it. Its a private, familyheld business. Gupta is there any advantage to not sharing this information . Simmons were not sure. But were probably not going to find out, either. laughs gupta harold took osborn, another of edmunds greatgreat grandsons and tony simmons younger cousin, is next in line to run the company. Everyone calls you took. I mean, youre one of the senior guys in the company, the number two. What does that say about this culture here . Harold osborn when i came here, i. I put my name in the Company Directory as harold. I didnt get any calls for the First Six Months because no one knew who Harold Osborn was. They all knew me as took. Gupta a decade from now, will one of the bestknown companies in the world be run by a guy named took . Osborn well, we might. We might change that a little bit. laughter simmons they going to call you mr. Took . Osborn mr. Took. laughter thats right. Gupta even though hes the heir to the tabasco crown, osborn inspects the pepper bushes himself, much as his ancestors did, as this company film shows. Osborn you have to walk through the field. And we take rope. And we, say, this plant, that plant, you can almost see the personality of the plants. And then we tie a string around them and come back and pick just those plants for next years season. Gupta the Company Grows peppers on 20 acres of avery island not to produce sauce, but to produce seeds, which are sent to farmers abroad. Osborn its essentially an heirloom plant. Its essentially the. The original stock. Gupta so youre saying these peppers are genetically the same as the ones that. The original peppers . Osborn as far as we know, yes. Weve never modified them. Gupta these peppers are handpicked. Why not use a machine or some sort of automation to make that easier . Osborn we dont want to change the plant. Thats the way most. Like, in the cucumber world, or potatoes or anything else, you modify the plant to work for a harvester. Every time you breed something, you give away something, and taste is always the first thing that gets cast away. Gupta key to the taste of the sauce are the seeds, and theyre irreplaceable. Osborn we have a vault in our. In our office. Gupta a vault . Osborn a vault. We keep them. Gupta you keep seeds in the vault . Osborn keep seeds in the vault. Gupta farmers in latin america and africa use those seeds to grow ten Million Pounds of peppers. They mix them with salt, grind them, and ship the mash back to avery island, where its aged in oak barrels that were once used by the finest whiskey makers in the country. The barrels do have to be modified, though in particular, the metal hoops. Coy boutte well have to put stainless steel on them. Gupta why . Coy the acidity of the peppers. Gupta the peppers could eat through the steel thats down there in the first place . Coy correct. Gupta coy boutte is in charge of the warehouse. Hes also a fourthgeneration tabasco employee, something thats pretty common around here. Coy my grandfather, he ran our processing department. My mom works in our h. R. Department, and my dad runs our maintenance shop. Gupta how big a part of your life would you say tabasco is . Coy its my whole life. I was born and raised here. Gupta do you eat tabasco every day . Coy i eat tabasco every day morning, lunch and supper. Gupta as the mash slumbers for three years, spider webs grow on the 60,000 barrel inventory. The last time i saw this many barrels is usually a place like a winery. Simmons we think about our process similar to the way, i think, a winemaker would think about his process. Gupta once simmons approves the mash, it moves on to the next pungent stage. Simmons we add vinegar to fill the tank, and then we mix it and stir it for up to about 28 days. Gupta takes your breath away. coughs do you ever. coughs do you ever get used to it . Simmons coughs i dont know if you can get used to it, but it doesnt affect you quite as much if you. Gupta after awhile . Simmons . After awhile. Gupta the sauce is then strained and bottled. The companys 200person workforce can produce more than 700,000 bottles a day. This is a big product around the world. I mean, how big are we talking about . Simmons we are currently shipping to 166 countries. Gupta do you want to be in every country in the world . Simmons well, yes, we do. laughs gupta meanwhile, the hot sauce industry in the u. S. Is on fire with revenue of more than a billion dollars. Eating spicy food has risen in popularity. Its even become a competitive sport. You got hotter . Thisll be a 20minute burn. Gupta . As can be seen at this chili festival near dallas. Thats hot gupta lately, tabasco, the grandfather of condiments, is trying to keep pace with these brash new rivals. Simmons the market itself has been growing. And the more people that come into this category, we think, the better it is. Because if you begin to use hot sauce, we think, sooner or later, youre going to find tabasco. And when you do, were going to get you. Gupta youre going to hook them. Simmons were going to hook them. Gupta avery island is located in hurricane country, making tabasco very vulnerable. In 2005, hurricane rita caused massive flooding. How at risk was tabasco . Simmons we had four inches before water wouldve come into a food plant. And you can imagine, we wouldve been shut down for months and months. Gupta thats very close to being on the edge. Simmons its the only place in the world we make tabasco. Gupta in order for the family to protect tabasco, they must first protect avery island. Fighting the erosion of louisianas picturesque bayous is a constant challenge for took osborn. Osborn some of the problems that we have are saltwater intrusion. If you bring direct sea salt in, itll kill all this grass. Gupta without the grass, the areas biodiversity will also disappear, so the company has a program to replant new grass. Osborn its an indigenous grass. Its very inexpensive to do. Its very effective. It grows fast. What you see here, this grass will start spreading out b the. By the roots. And it stops the sediment thats floating by. And the sediment drops out, and builds marsh. Gupta in just a few years, this will turn into this. As much as they like to talk about their conservation efforts, the family also leases their land for oil and gas drilling, as well as salt mining. Those two things seem at odds with one another. Osborn no, because we use those resources to. To actually help the parts of the land where the oil isnt. Gupta how does that benefit avery island and tabasco . Osborn all this land protects the island, protects it from storms, protects it from erosion. And its part of our heritage. Gupta that heritage includes unique cajun musical and culinary traditions that the mcilhenny family cherishes. Simmons if you work on the leg to get some of that nice crab meat. Yeah. Gupta and at the heart of Cajun Cuisine is cajun ketchup. Could you do what youve done here with tabasco someplace other than avery island . Simmons i think we could make tabasco. But im not sure that the joy would be anywhere near as great if it. If it wasnt being done where it is. Gupta they are fiercely protective of their island, their business, and their sauce, which has been trademarked since 1906. Now that ive been here for a couple of days, i sort of feel like i got the. The formula for this tabasco down. And if i wanted to go out and create sanjays tabasco sauce, what would happen to me . Simmons if you called it sanjays tabasco sauce, youd get a cease and desist letter from us pretty quickly saying that you cant use the word tabasco in that context. You could call it sanjays hot sauce made with tabasco peppers, but you couldnt call it sanjays tabasco sauce. Gupta how far would you guys go to enforce that . Simmons well go to court with you. Absolutely. Gupta there will be no other tabasco sauces out there . Simmons no. Gupta there have been rumors that there have been offers for purchase of tabasco. People that offer a billion dollars, maybe even more. Is there any amount of money that would make this company for sale . Simmons the shareholders of the company would have to decide what they want to do. Gupta and they say, mr. C. E. O. , whats your recommendation . Simmons you know, i like owning a family business. laughs join sanjay gupta on a journey back in time to avery island. Go to 60minutesovertime. Com. Sponsored by viagra. This is the age of knowing what youre made of. Why let erectile dysfunction get in your way . Talk to your doctor about viagra. Ask if your hearis healthy enough for sex. Do not take viagra if you take nitrates for chest pain. It may cause an unsafe drop in Blood Pressure. Side effects include headache, flushing, upset stomach, and abnormal vision. To avoid longterm 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. This is the age. Of taking action. Viagra. Talk to your doctor. 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