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 kelloggs 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 arthritis symptoms. But 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, or s. 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. Final 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. Gillem tulloch 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. Stahl 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 average 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. Oh, wait its cause you make me smile oh, wait celebrate your love of crab with gthis years largest variety . cause its crabfest at red lobster dig into a succulent selection of crab entrees. Like new crab lovers trio with sweet snow crab legs, split king crab, and jumbo lump crab over savory shrimp. Crab three ways all on one plate. Or try new jumbo lump crab over woodgrilled salmon. Experience crabfest at red lobster today. Only for a limited time. Come in and sea food differently this is bill. His doubleheader day at the park starts with back pain. And a choice. Take 4 advil in a day or just 2 aleve for all day relief. Peanuts peanuts crowd cheers itthat whats on the inside iss what really counts. Agreed. This is the jeep® grand cherokee the most awarded suv ever. Wellqualified lessees can lease the 2014 grand Cherokee Laredo 4x4 for 359 a month. 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