released until now. we have a fascinating look coming up at 3:00 eastern time. i watched that movie last night and it is fascinating. i'll see you back in the cnn newsroom an hour from now. first trouble on wall street with a scandal. are your investments safe? christine roman starts now. sex, lies and money. from your wallet to your vote, it's hard to find someone to trust this summer. i'm christine romans and this is "your money." from the political field to the playing field, it seems like no one is leveling with the american public these days. >> citizens are more interested in the challenge they face in their lives than anything that i have done embarrassing in my past. >> danger. anthony weiner's bad behavior didn't end after his resignation, but will it end his political career? both weiner and eliot spitzer went from rising political stars to tabloid staples. now they both want another shot. >> the public is going to give

me a fair hearing. the yankees third baseman alex rodriguez has admitted to doping in the past. now he faces a scandal that threatens ending his career: cheating. it's why lance armstrong was stripped of his seven tour de france titles. his response of his former sponsorship by the postal service? armstrong says he should have known he was doping. and more lies alleged on wall street. the government is going after one of wall street's big dogs, indicting billionaire steve cohen's hedge fund, with wire fraud. >> joining me now, cnn's political couple, margaret

hoover. we have seen weiner's wife stand by herman. he falls from the top spot favored for mayor. he plunged to the 30%. is he going to get a third chance? >> this is only a democratic primary we're talking about and he only has to be in the top two. now he's in a statistical dead heat for the number 2 spot. 72% of democrats who will vote in the primary says the character witness for her husband made no difference at all. so the third chance may not happen. >> what do you know that he says is true or false or -- >> yeah, i know. the guy is clearly a narcissist and a pathological liar. he had lied to his family about

something he was already punished for. you deal with that in your private life, not the new york voters' dime trying to run in new york. but the massive problem is this trust that we're seeing disintegrate in the last couple decades. the problem is people in positions of authority aren't trying to hold themselves to a higher standard anymore. back when people a spidspired t abe lincoln, we see a slide in their behavior. these people are so arrogant, sons so narcissistic, they think they can get away with it. >> and now the government suing lance armstrong saying he violated his contract with the u.s. postal service. lance armstrong's lawyer offers an eye-popping defense this week to get this case dismissed. i want to you read this quote. the government wanted a winner and all the publicity, exposure

and acclaim that goes along with being his sponsor. it got what it bargained for. >> the will to win, working harder, being more successful. folks who are narcissistic feel they can get away with it and then it becomes not getting caught, not the act of cheating. >> it's the summer of lies. every newspaper, the front page, every blog is about how we've been lied to, who is cheating, who is being punished, who is trying to dodge punishment. even on wall street, we're talking about sec charges, we're talking about fines for hal burton. we're talking about all kinds of different things. i'm speechless. >> your brain is hurting from all the lying. >> the good news is they're getting caught, right? and there is moral outrage about it and we're having this conversation. this isn't okay, this isn't how we play. we play fair, we have laws, we have rules and we're enforcing

them because it matters. >> let's be completely honest. a lot of corporations, a lot of campaigns feel they will break laws and pay fines after the effect. cost of doing business. and the comparative fine, $200,000 in the case of haliburton outside the other payments they'll have to make to fish and wildlife, that is a slap on the wrist for a multi-million-dollar corporation. all of a sudden it's a rational bet to make. >> it's winning, winning, winning, winning at all costs, from aj at a timed shareholders, from viewers, it's all about the bottom line. >> guess what. night follows day, consequences will kick in eventually. >> i hope there's not so much lying next summer. the summer of lies! thanks, you guys. coming up, the energy boon was supposed to put money in your wallet. instead it's blowing out your car's tiailpipe. it's blowing out the windows of your home. i'll tell you why, next.

it was supposed to be saudi america. we are producing a lot more natural oil and gas, but are you feeling it? the promises of thousands of new jobs and lower energy bills nowhere in sight. and this summer, driving the car, running the ac, is getting more expensive. gas prices have surged after dropping just a few weeks ago. take a look at this. from the july 4 holiday until monday, you got gas prices up 17 cents a gallon. electricity prices are also rising. check out the change at the wholesale level in some of the country's biggest trading hubs. in massachusetts, up 101%. in new york state, up 65%. washington, oregon, minnesota, arizona and california all with huge gains. why? the manager administration says it's the rise in the price of natural gas that's used to make electricity. you might not see those increases in your energy bills, at least not until maybe next year. now, many areas got a big break from the sweltering heat this

week, but you may have to keep that air conditioner on well until september. the national weather service predicts higher than expected temperatures across most of the country over the next three months. you can see where right there. let's go back to gas for just a minute. it's not just changes in demand that move prices for gas anymore. some refineries here in the u.s. are having a variety of problems. plus we're in hurricane season, oil prices are volatile, the conflicts between syria and egypt. those causes worries about the supply chain. and big banks may also be contributing. a senate banking committee hearing this week suggested banks that own pipe lines and other commodity businesses pose problems for consumers. >> but i also don't think that most retirees realize that their pension or retirement savings are used to pave the way for big banks to be able to control an electric plant or an oil refinery.

>> tom klaas is an expert. nice to see you, tom. tensions in the middle east, demand for gas, refinery problems. is there a simple way to explain why gas prices are rising when we are flush with oil and gas in this country? >> well, we're part of the world, and we do have to privilege numbers in terms of cheaper crude than the rest of the world, but there are a billion people elsewhere in developing countries that are moving into the middle class, let's say, in this generation. so we're going to see some settlements of world oil prices, but relative to the rest of the world, we've got better prices for crude, we've got much cheaper prices for natural gas, and we've got a little privileged continent atmosphere. people don't realize it because they're paying more than they were paying last year for gasoline, but you look at a generation ago, and it was a dollar or so lower. >> so it could be worse.

>> it could be worse, and i think we need to remove out of the equation that we're not going to go to $5 or $6 or anything like that. >> we're not? >> no, we're not. only if we had some major cataclysmic event like a major middle eastern war. we've got plenty of crude. we're producing more crude oil right now than we have since december of 1990, and we're going into the mid '80s in terms of supply. >> there was a commenter on a recent gas blog that says gas goes up like a rocket and down like a feather. do you think they have peaked this year? >> i think they peaked in february which was an anticipation of what might happen. they peak unless we get events. if we get a hurricane in the gulf of mexico, you can almost take whatever category the hurricane is and move it in some sort of exponential, and that's how much gas will go up. but without that and without

egyptian violence breaking out into the suez canal and elsewhere, i think we're pretty close to a top and i think we'll see much lower prices in the last 100 days of the year. >> i tell you, i'm so glad to turn my ac off. if it's not put in the gas tank, it will be paying my electric bill this summer. thanks. nice to see you. here are the other stories that matter to your money this week. it's not all about the gas tank. give me 60 seconds on the clock. it's money time. good news for apple. it sold 32 million iphones last quarter. no one saw that coming. the bad news, profits sank and investors are still waiting for apple's next big thing. parents are forking over less cash for their students' college. instead they rely more on scholarships and they're bunking with mom and dad. one who doesn't need a scholarship? william and kate's baby boy. it is estimated it will cost a

million dollars. taco bell won't be selling meals with toys anymore. taco bell is the first national chain to dump the kiddie menu. the cash-strapped post office pushing to cluster boxes instead of door-to-door delivery. you can google the next story. google accounts for 25% of all web traffic in north america. that's bigger than facebook, twitter and netflix combined. and netflix could use some more of that traffic. bringing back "arrested development" brought in a lot more viewers, but not enough to keep investors happy. coming up on monster payday, for mark zuckerberg, 3$300 million in one day after explosive stock. is it time for you to get in?

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facebook finally delivers. the company had its best day ever on thursday, rallying 30%

after making big inroads in advertising. it still is, by the way, 10% below the ipo price of $30, but several wall street firms are now raising their target price above that threshold. then there's the housing market. home prices are up more than 12% from a year ago. this is according to s&p kay sh shiller. this market is no old bull, it is a young pup. zillo predicts home prices will rise another 5% next year nationwide and double digits in some markets. so where should you put your money now? before we ask wall street, let's hear from main street. >> if i had some cash to burn, i would most likely buy real estate. >> i would probably buy stocks. >> i think the stock market on the whole has always done better. >> i feel like the housing market is eventually going to go up. >> if i'm looking to make a real return on my investment, i'm going to buy some stock. >> if it's not under my mattress, it would probably be in real estate. >> there is always somebody

putting it in the mattress. let's ask the experts. keith mccullough and -- let's look at facebook. are you buying in? >> i definitely wouldn't buy facebook today. if you own facebook, i'd take it and sell it and buy a house with it, christine. >> you would! >> yeah, i think that's the right call. people should feel comfortable in housing in particular. it's supply and demand from a mortgage -- think about your mortgage payment as a percentage of your income. it's at a historical low, so that's affordable, and prices, as you pointed out multiple times, are rising, which is a great time to buy a house. >> michelle slipped in june, but new home sales are at a five-year high. you look at some of this housing data, do you agree with mortgages falling for the second straight week that the read on

the housing market is still quite bullish? >> i think it is. i think the fundamentals are very supportive of home prices continuing to rise. we have very low inventory, we have a lot of pent-up demand coming from household information, and mostly coming from people that were sitting on the sidelines waiting to feel more comfortable about the idea that housing is once again an appreciating asset. i think we are seeing a continuing improvement housing demand. it could be volatile, it always is vol tichatilvolatile. the data is noisy, so we have to be careful to look at one month. >> you look at first-time home buyers, they're 30% of home sales, and first-time home buyers tell their realtors that they can't find the house we want in their price point, they can't find something they can afford. that's probably because of an inventory issue. and they're also having trouble getting mortgages. you look at some of these other markets, 57% of the purchases like in florida are cash purchases.

80% of purchases in vermont are cash purchases. it doesn't look like a gain for the masses, it seems like the people who have money are making money in real estate. >> in many ways, it's still a distorted market. we came off the biggest housing recession since the great depression. we've had a lot of distressed inventory and extraordinarily low production, extraordinarily low construction. i think, yes, in terms of clearing out the distressed inventory, in terms of moving the existing property, it's been driven by that higher end individual. once we start to see new construction pick up, which is more focused towards that entry-level homebuyer, then i think we begin to see the resemblance of a more normal housing market. we're not in a normal market. this is the beginning of a turn which ultimately will be towards a more stable market. >> keith, you said earlier take that facebook stock and buy a house with it. if you ask the question stocks or real estate, is the answer both? >> yeah, i think it's both. but again, it's all about the duration of your holding, so i

think if you had a lot of normal people give you that explicit answer, and i think on stocks, you got to keep buying pullbacks, because what the market is really doing, and facebook is a shining example of this, is that the market is saying, hey, look, we like growth. even though the rest of the world is trying to scare the hell out of you every day, fear is for sale, bonds are for sale so you want to buy those, and you want to buy stocks on pullbacks and then take your gains and buy assets like a home. i agreed a lot with what michelle had to say about that. affordability and metrics are right where you want them to be, now you just need to type of supply to come on line. >> if you have one house, buy another. that's the best place for anybody to make money these days. michelle, thanks very much. keith, nice to see both of you. how do you create a billion-dollar empire without spending a dime on advertising? hint, oprah, kim kardashian. can you guess the most

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kim kardashian wears them, so do beyonce. what do they all wear? spanx. it helped the owner build a billion-dollar empire, all for wearing something you're not going to see. here's how she did it. >> the simple answer, christine, is word of mouth. every man out there and has a woman knows what spanx are. put them on, it gives you a slim shape. but the woman who did this sold magazines door to door to making a billion dollars in ten months. take a listen. sara blakely admits she's not your typical ceo. she's never taken a business course, nor did she have any experience in her field. but she's a grade a student when

it comes to not taking no for an answer. >> i got laughed at a lot the whole way, but i learned that you had to keep going. >> blakely is the world's youngest self-made female difficult onair, thanks to spanx, tight-fitting shapewear for women, an idea that came to her while she was getting dressed for a party. >> there was a void for undergaunder d undergarments for women. so they created a shaper like a second skin. >> it will suck you in without being too tight or uncomfortable. >> i'm getting married and i need something that can hold in all the goods so nobody can see something only your husband should be seeing. >> she sold over 10 million pairs around the world without spending a dime on advertising. >> if a girl tells you at a cocktail party or sitting is the a restaurant about a product, you tend to become much more loyal or interesting in it than

if somebody showed you a glossy picture in a magazine. >> especially when that girlfriend is oprah. >> i've given up panties. i wear spanx. that's more information than you all need to know. >> one mention from oprah and 20,000 pairs of spanx were sold in less than a day. >> it's like winning the lottery as an entrepreneur. >> but blakely's road to success didn't come easy. after leaving school, she settle odd a job making fax machines. >> if i hadn't failed, spanx would not exist. >> after patenting her idea, she begged factories to start making it. although they refused, blakely refused to stop trying. >> when i grew up, my dad used to encourage my brother and me to fail. so i would come home from school and sit at the dinner table and my kads would say, kids, what did you fail at this week? and if i didn't have something to tell him, he was

disappointed. so if we weren't failing in our home, we weren't trying new things. >> it doesn't necessarily have to be the most original, unthought of idea, it can be the simplest thing. she found something that every woman in america would have a need for, but it was execution. the way she went about it -- her first launch in big department stores, she would literally go to big department stores and stand in the checkoutlin lines they should buy her product. >> wow. it's so interesting she was selling fax machines door to door. thanks for bringing that to us. you can see more of sara's tips for aspiring entrepreneurs on cnn.com/yourmoney. coming up, i'm going to give you an inside look at super secretive north korea.

>>. >> reporter: these children love what most kids love, cartoons, rollerblading, but when you ask them what they want to be when they grow up, most of them want to be soldiers to protect their country. >> that's sunday, 3:00 p.m. eastern. "the next list" starts right now. >> they are innovators, game changers, people pushing themselves. moving us all forward. they are the next scientists, musicians, poets, the next makers, dreamers, teachers and geniuses. they are "the next list." the ocean will humble you. the ocean will put you in your spot. when you think you're in control of mother nature, and you think you're in control of the ocean, you're not. >> welcome to "the next list." i'm dr. sanjay