on the phone how will you be inspired to do well when your employer does not car joining u. we will be right back with melissa frais. >> good evening, everybody, i am in for melissa francis. here's what is "money" tonight. ca it hyperloop mania. elon musk releases his designs moments ago. it's getting from l.a. to san francisco in 30 minutes as easy as he makes it sound? we will get a top expert to weigh in. and he is burning almost every bridge in sight, all word on wall street. who madeoney today? the company has nine lives and he is making a killing off of it. stay tuned to find out who it

is. even when they say it is not, it is always about "money." our first guest says it is a great way to make money. after the last fe years, house flipping is on the rise big time. flips of homes are up 40 for those of you who want in, we have the best in the business to tell you what to look for and where. he literally wrote the book on this, find it, fli fix it, flip. housing has been on the men's, but flipping is surging. what is behind i it? >> the real thing is flipping.

there are some diffent categories. for a while we have had properties on the market and if you know how to do it, you can get a property at a great deal, add value to it and hopefully sell it right away as prices are going up which helps to boost your bottom line as well as inventory shrinking. you are adding value and the market is adding value at the same time. lori: what should i consider, who is the best candidate to embark on flipping? >> somebody who is not faint of heart. there are risks. one ings i find amusing is on the television shows flipping properties, oh, my gosh, they made100,000. that is not it, thaa is not the reality of it. you have to know what is behind it, there are certain things you have to be aware of like hidden

costs. the elements, the things you have to watch out for when flipping. you need money to be able to do this. lori: absolutely. what are some of the risks hashtag one of the things i watch our interest rates. do you think this will curb the trend? >> absutely it will. home affordabilityis actually decreasing right now so if you are buying properties to flip them, take in mind interest rates are going up and as we saw a big jump in interest rates from march until now, you will see a change in what the buyers can actually purchase, like fo example you look at a property for sale you c go on websites to look at the mortgage calculator, is a big fference between what you would have paid for that house in march and now, that is a consideration. lori: geography plays a huge

role. >> ''s are the ones he talked about over a million plus, some of the big, hot cities, of course like los angeles, beverly hills, malibu, new york city, they have the big-money flips. for average investors who wants to get into this, start small, great city, oldsmar. even sacramento. lori: if you want to go the distance, initiate and the cost to taste by the house and put it on the market, improvements of course, how much money could you possibly profit with? >> i a very conservativeve. i really think if you can get 10 or 15% return on your fit property, that is fantastic because you want to remember when you are flipping a property you want to learn how to do it, so start small, don't get grand ideas, just get through the

first one. and then you can look at more expensive properties and a larger profit line. lori: can you put a profit value on it? >> is depends on how much you paid for the house. if you bought a million dollars house, that would have been a waste of your time. it is all about yourarket. lori: the real issue is the large value homes, right? >> that is one way, but a lot of people very smart and are buying multiple numbers of the smaller, less expensive homes and making a very nice living making very nice profits on 10 of them at a time, so there are both ways to go, but my advice is to start small, work your way up. lori: give me your three tips on

getting into this industry. >> the first one is to know the hidden costs. you have to realize you have carrying cost, commissions when you sell and w you also have taxes, uncle sam wants a piece ofour profit, so when you are doing a flip you have to keep that in mind. you have to know your market. if you are in a million dollars, $2 million market you better put in some nice amenities and you have to know the market. if you're in lower price market, don't over capitalize. those are really some of the most important ones. that is probably of all the ti tips, those are my top ones. lori: you're an expert on the topic of flipping. great to talk to you. from flipping million dollars homes, growing battle of land versus jobs, enraged environmentalists and activism on the front lines trying to

stop a mining project near lake superior bringing jobso an the area that desperately needs them. fofox news is following the stoy from chicago. >> a spokesman for the company says actually it would create thousands of jobs in norern wisconsin, but before they can completelcomptes the merriment y reviews, they want to shut it down. armed guards on the ground in wisconsin, a response to this. right wing bloggers have called them ecoterrorist. intent on disrupting the work. that involved a felony charge, three misdemeanors and it hasn't even started. all the protesters disrupted sampling environmental impact

studies. >> event the courage of convictions and believe what they have been saying, they should want us to find information out because they can use these facts. >> he says the iron ore mine will not introduce chemicals. they will remove the iron ore and then replace. it should be noted the bulk of the protesters say they shun the radical. they want work at the site to stop. >> it is not that i don't trust the dnr. i don't trust the people supporting the governor in our statehouse. >> the native american tribe says it violates the treaty because it could impact hunting and fishing rights. they're going to take gtech to federal court and they can lock them up in a crt battle that would ultimately snapped the profits. lori: the protesters are getting in the way of environmental impact study so we can't even find the results of this, what

happens next in this battle? >> what happens next the public hearing scheduled for thursday and then you talk about getting solid facts. that is a first time they enter into the debate. thus far what you have had is a lot of emotion, lots of suspicion as far as what will happen next. this will be an opportunity to get things on the record. lori: what will ultimately haen to tte land at that site when all is done? >> at the moment its used for loing. remove the dirt, separate the iron ore, and replace the dirt and replanted for a future date. lori: thank you. it is like christm morning for science and tech junkies. elon musk pulls back the curtain on the hyper loop, is it more reality or fantasy? plus, jcpenney's biggest

advocate has turned the entire company against him. his hedge fund titans becoming unhinged. we will get the inside scoop. more "money" coming up. when we made our commitment to the gulf, bp had two big goals: help the gulf recover and learn from what happened so we could be a beer, safer energy company. i can tell you - safety is at the heart of everything we do. we'vedded cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.

lori: breaking news from elon musk's conference call as we speak in his vision to revolutionize transportation at the high-speed rail called the hyperloop beauty can get you from l.a. to new york and 45 minutes. live with the latest from the company playing a major role in the development. >> that is right. talk about their role in position with elon musk on these plans that just came out. let's go back to the plan first and see what elon musk it is a sealed capsule carrying 28 passengers each cording to the plan, that is part on average every to everyone minute.

this is going from l.a. to san francisco very much addressing point a to point b traffic issue that seems to be very significant. the capacity is 840 passengers per hour. on the conference call, we are on it right now, the acceleration would be very quick but very smooth and something you would not necessarily be able to feel. and of course, the head of the group woing on this kind of technology, you met with elon musk and you come up with thi mockup of a capsule. what is the reaction to his findings, his proposal has put out? you saw him several days ago. >> several days ago. i am very impressed with his

theories to go up agait high-speed rail to say there is a much better way to do something. it is a step in that direction. it takes that much further and we have gone into a great deal of research to maximize trepidation val. that is the key, what does it take to build the greatest amount of value. lori: he is proposing you drive a vehicle in instead of using a capsule. i know you had some thoughts on this going at your meeting, what kind of vehicle do you envision him usinfor this? tesla perhaps? >> the size he told us, which was 2 meters diameter, is probably very cose to enough room to drive a car in, a smaller car. i haven't measured it to see if it would fit.

in my headdit uld be a bigger diameter than tt to accommodate a driving car. we want to make a special vehicle thatan drive it and optimized capsule that can go on the road for maybe 30, 40, 50 miles, reach interstate speed, be very streamlined at a much, much lower cost. lori: interesting. the difference despite your connection is hype hyperloop is something he prose on his own and open source. you are talking about something that is going to be global. >> yes. a candidate for extended like like freeways or connected eventually on a global basis. if all the tubes are made the same diameter and stan staar

and every nation, they can be networked together. everybody built the track to different widths according to their own plans. it has to be standardized if you want to use on a global basis. the philosophy is very differe different. >> similar technology. i am so sorry to cut you off, we have to go, but we will bback with the continued exclusive we had all day covering the hyperloop hyper design. lori: thank you for that. unveiling the details of his design. when they question everybody's mind, can the design actually become a reality? here to break it down for us, ceo, will come to you. first question, if there is so

much scientific and technological investment behind the hyperloop, new york to l.a. in 45 minutes, does it work? >> absolutely it could work. demonstrating the fired rockets into space, built the first real electric car, demonstrated his ability to disrupt to massive industries, space travel, space transportation and now auto. he is the right guy, he has the dna and i would forecast he this. of course he will need a lot of support and a lot of capital. lori: that'll probably be more challenging than the technology itself. what is your estimate dollar value? $7 billion plus? >> $7 billion plus. but keep in mind he was lent a billion dollars plus by the u.s. government, he raised billions, he has a very succesul track

record as a former founder of paypal, in a tesla showroom just yesterday, his stock is up, he has track records to be able to raise capital. lori: when you think people could start buying tickets? >> i think he has to bld it first. he is testing the waters. this is very much his mo. i would be not surprised if you have major venture capitalists and even some governments approaching hi and throwing around a couple billion dollars. $67 billion, $8 billion is not a lot of money to create an entirely new transportation invation and that is what he is going to do. lori: hyperloop, the california high-speed rail 200 miles per hour, a huge disaster, cost overrun, everybody shaking their head, what a bad idea that is. you can't not look at the

california high-speed rail example and raise some concerns about this hyperloop and that being a poor investment. what is the difference, is there one? >> there absolutely is one. this is a fellow who very much silicon valley rules. steve jobs, he is the kind of guy, massive, bold innovator. being from the bay area myself i can tell you that is what we strive for. this guy will look forward. i believe he will bring together the right innovation, the right ring screws. the fact he is now demonstrating in delivering on tesla sending payloads assays using his facilities i think we tald my revolution of transportation. i think he will do it and we'll deal with a lot of support and will build a model that works. lori: i demised me driving on te

bank teller and they would shoot up your deposit. >> there is some innovations. we have analyzed kind of the data we have and we put together a little think tank to say what woulit look like? solar-based using existing technologies but maybe in creating entirely new technology that has never been invented before. that is what makes his innovation different. looking not just forward, but far forward in the sense why can't we build this now? he is known for this and i believe he will take this on. the big difference between this and light rail is rail is big iron, big infrastructure. big, massive computers compared to a mobile handheld device. that is a difference that will

bring hyperloop into reality. lori: exciting nevertheless. thank you, sir. time for today's fuel gauge report. the average price for gas is still $0.07 over the last two weeks, according to the latest survey. oversupply of gas largely attributed for the climb. prices largely fallen further over the coming weeks. mexico revealing plans for a big overhaul to its energy infrastructure for the first time in 75 years. private oil companies could joint ventures with the government. helping pass large reserves underground and in the gulf of mexico. the plan said to go before the congress for a vote. iran may be getting a badly needed lifeline. the company wants to increase imports of iranian oil. us-led sanctions have devastated iran's crude exports over the past year. india says his plan to be a bartering agreement and that it

will not violate sanctions. next, is bill ackman having a meltdown? a brutal year for the titan. his boardroom battle with jcpenney sending him over the edge? all the worr on wall street and we have the inside details. two former traders could b arrested a moment. criminal chargesgainst them in the london whale scandal. should they batten dn the hatches? can you ever have too much "money"?

♪ lori: the rumors behind the scenes, we have it all on

"mon" today. a big boardroom brawl that has ever be talking. jcpenney. and the other corner, bill ackman. coming head-to-head with the largest shareholder, all the word on wall street. it was a juicy details, give us the update. it is ming down to who says what, he sent a letter to jcpenney last weeand a chairman kind of fired back, we will put these people in the leadership position. weigh in. >> the board is supposed to be there on behalf of the shareholders. 18% for the stock, and the company for an activist sharolder mounting for a long time now. he has ridden it up and mostly down because he had the firing of the current ceo and bring in johnson, which is a disaster.

the peak hit after johnson was brought in. the company has done very, very poorly. lori: as an advocate, he is supposed to raise flags, if you will, and challenge decisions and put the company's best interest because you have to believe his feeling on the future strategy for jcpenney is the right direction. >> there was a gigantic flop. he brought in johnson and it was a disaster. a large shareholder, 7%, between them at a quarter of the company is supporting the move. viewed as a miracle worker in retail tcome in and replace the predecessor of ron johnson. it is not just about bringing in the new ceo. it is both information flow to

them because he wants to get constant updates on what is going on, wants to micromanage and that is not typical of a board member. most at the golf course and have lunch or whatever it don't put th kind of pressure on the board. lori: what is he doing that their questioning his reputation. he mentioned the state for jcpenney and it was much more well received. whatat is he doing wrong? >> his reputation suffered because he brought in the ceo. it is also the fact he is airing the dirty laundry, the back-and-forth, used to get reports from so-and-so, no i don't get it. should hav i reviewed them becae i'm on the comnsation committee and any appointment at that level should be reviewed by the compensation committee, i have not heard about it, that is not right.

so is a lot of airing the dirty laundry. a bit inside baseball of what it comes down to is replacing the chairman, the chairman does not want to go. lori: talk about herbalife. looking at an estimated more than $300 million loss from that bad bet. it is compounding itself to the downside. >> over the years he has done good, but he has had a couple bi boots. herbalife, is reviewed as an eagle in the line. he said he hasn't covered a single share of it. yes me losses are now beyond that because herbalife has been taking off. he is bleeding red ink. he can sustain it because he has resources to do so but he has made enemies on wall street because o on the other side o that trade our people who are

trashingim and so that. i think his bottom line is in tatters. his reputation has taken a huge beating on wall street. he has become a bit of a punchline, unfortunntely. lori: appreciate your insight on the topic. to traders about to be hit at any moment. will the fed make an example out of them for the $6 billion mess? plus, should women help the guys pay the bill there out on a date? what men really want, so nnturally hit the streets of new york to do our owntudy. "piles of money." spiegel feel if i ask you, i shouldn't have to pay for your time, you should pay for your own food.

♪ melissa: no matter what time it is, "money" is always the move. shares taking eight after hours reporting a 13% drop in july sales for restaurants in china. analysts expecting a decline of just over 7%. primarily blaming a food safety scare and an outbreak of bird flew. however, expect china sales to rebound in the fiscal fourth quarter. will watch for that. in the meantime, from j.c. penney ten jpmorgan, more than a year since the london scandal. now u.s. prosecutors are moving close to slipping to criminal charges. will this make traders think twice? a former federal prosecutor. an assistant editor of the "wall street journal" joining me in studio. the fed i going after a big

bank. what now? >> i think this can be interesting. the jpmorgan was the big political punching bag. there were not so concerned over the last year with what individual people at jpmorgan did as much as they really wanted to beat up the bank and its ceo, bbsically because he was pushing back on regulatory issues. now they're focusing and individuals i guess it will not present. melissa: to you think this could be a legitimate investigation anand see significant charges against jpmorgan? >> well, from what i've heard so far the answer that question is, no, i don't. the only witness that they have who is cooperating is the actuaa trader who is pointin the finger of the food chain. i can tell you when i was a federal prosecutor, you are prosecutg a drug organization or company, one witness was never enough almost as a matter of policy for the justice department because one witness who has been given a deal so

that he will not be prosecuted is almost not enough to up meet the beyond the reasonable doubt burden. the government is a longay from getting any convictions. lissa: t two guys at question, one was theanager who oversaw t trading strategy, but the other was responsible for recording the value. can you explain what they are specificalll looking into? >> it the answer, i'm having a tough time figuring it out it is very difficult. itould be one thing if the allegations were that jpmorgan had to make some type of reporting requirement and undervalued losses which would be a federal crime. there were trying to sell or trade or swap in these colicated credit-based instruments and lied about the value, that would be wire fraud or mail fraud, but remember a couple of things. you are talking about to feign nationals who are off of u.s. soil. whether orot that dartment of justice even has jurisdiction

, it is not like this is some scheme located offshore where victims were on american soil. that wld be a different story. the answer to your question is, i'm having a tough time figuring out what the crime is that the feds will charge these guys with at this point. melissa: weigh in here. to you believe they're trying to make an example out of jpmorgan? >> criminal, who knows. clearly jpmorgan thought there was a problem with this one particular manager in london. get rid of him, sued him and ended up dropping the case. he ended up getting back his pay or renouncing some o his pay. the question is based upon reporting in our paper and elsewhere, these debts were going south, was the urging very aggressive marks, very aggressive values put on these positions that the rest of the market was not acknowledging? what does that become a dispute over accounting and when is it something worse? we will find out, but this is healthy that they are focused on individuals.

if there is any wrongdoing at all as opposed to i just pursuing companies. melissa: can you point what exactly it is that prosecutors have left uncovered before they officially filed charges? >> they're is a lot, especially since you're talking about a criminal matter, civil lawsuit. we saw the recent case, preponderant of evidence. when you have a civil cas obviously, in a criminal situation you have to get beyond reasonable doubt. as far as what has been reported, we are a long way from that. melissa: were you surprised he was found guilty? >> not even a little bit. melissa: what is the difference? you're right. i apologize. >> that was a civil suit. this is a criminal case. you make a great point. if the justice department wants to make an example, they darn well better convicted. the worst thing that they could do is bring criminal charges against these guys and he them get acquitted because at that

point you pulled the pan out of a grenade and will never fix it. it will be wars that have you never done anything and all. melissa: what impact will this have onpmorgan which came out of the fancial crisis with the relatively glowing reputation. >> and we ought to point out that as much attention as otherwise, they still had a record year for proh the losses. so for them specifically certainly if this goes all the way and someone goes away, gets convicted it would be a black mark, but on the other hand briard long way from that. they parted ways with him a long time ago and said basically it's his failure. i'm not sure it affects the bank of that much. >> i don't think that it will. >> i don't. i don't think it will affect the bank. a lot of people spilled their the titanic.ce on the dec of it did not make any difference. this is not going to be an iceberg. melissa: nice analogy.

very well spoken. coming up, a wild west days over? the biggest suppliers and is looking like it might be the beginning of the end. the ceo of one of the first companies to use it joins us. thus, when should women help pick up the tab on dates? a new study. the end of the day, it's all about "money." ♪ >> i think that on the first five dates they should at least to the reach for the wallet. that makes me feel a little better. they should tomlin not pay. ♪

♪ melissa: bad news for bitcoin, or is it? at least two dozen companies have been subpoenaed by the new york department of financial services. that cannot be a good thing. the whole business is currently

unregulated. the government is chomping t the bit to get in on it. ceo. nice to have you here. i don't know if the regulators ar stepping in. if i'm running it and thinking, i finally arrived because the government is taking notice. >> i think that there is a lot of positive. in fact, way more positive than negative. melissa: so what then -- posive or negative, let's talk about the negative. anytime you have the threat of a subpoena it raise concerns. what is the worst-case scenario? >> that they find something and resolve it. the negative is that it is it for the market. a negative light be any bad actor is and there not complying with the law will be found and prosecuted or really probably just as in the right direction. the negative is really still, the positive to 60 think it is a situation of one bad apple that

it was as clear the deck and move on so that bitcoin can be a real, useful, practical on-line currency? >> i don't think it's about one badpple. is the wild west. the banking indtry when it was still the best idea to put money in your mattress. this is a new market, a brand new thing. so i think that regulation is a natural and healthy part of it and that a subpoena does not necessarily signal wrongdoing. it is not being guilty. it is a request for information. a new industry. it's reasonable for regulation to command. melissa: explain what the federal government is looking for. why did they want to regulate at this point? >> it's like any sort of money transion -- transition business. we process milllons of dollars. anti money-laundering, money transmission.

and it is complicated stuff. this huge range of new start-ups coming into the space arod the backdrop of bitcoin. it's very complicated. and a lot of unanswered questions. so the government is refining their approach and really clarifying who the good and bad hour. everyone has good intentions. the rules are complicated, fuzzy, and so they're helping people comply. melissa: you organize expense reports, if i understand this correctly. has it made your job, your company -- you mentioned it makes things much more complicated. how does it change day-to-day business? >> i would say that, for us, we use bitcoin or reimbursement. inside a particular country like united states direct deposit works great, but if you're moving money between countries bitcoin is perct. so i will say that bitcoin is useful for a subset of customers

at reimburse international expense reports. not the majority of our business, but a growing part. international reimbursement is a big deal. melissa: what is the future of it and what should investors know about a? the future of bitcoin will be the future of the present-day gold. it will be aarket will there aae serious investors that want to buy its contract i and put it in their portfolio. sometimes people use gold as a currency, not o much in he first world, but elsewhere. the future is basically a future of more formalized and familiar internet banng in the form of bitcoin. melissa: thank you. appreciate it. >> glad to be year. melissa: next, the downfall of numerous relationships. should women japan on dates? news survey tting surprising results. we get some of our own on the streets of new yorkity hall in "spare change." you can never have too much "money." ♪

>> i would like to pay. i don't want to be called cheap, but i would -- if she insisted i would oblige and make it up there another way.

♪ melissa: and some fun with "sparehange." today we are joined by monica and jason. now for our "money" water cooler story. two-thirds of men think women should help pay. the funny thing is, most guys feel guilty about accepting the money. as for women, 57 percent sd they would offer, butot surprisingly 39 percent confessed that they hope that the guy would reject the offer.

what do youay? expecting them to pick up the tab? who should pay today? all right. jaso first to you. when you are out how you handle that? the language can be awkward when comes time for the check. >> i think no problem paying 100 percent. melissa: let's just put it out there. >> let's get it done with. hover, if they're is a level of expectation that comes -- it appears there is a level of expectation it is a complete turn often deal breaker. melissa: monica, when you're on a data check arrives, do you feel automatically obligated to offer to japan are covered -- how you -- >> it has been a while. when i did remember having the conversation being awkward. i would always say, and this goes for the first day, the convsation is, can i help out with that, chip in?

39%, i'm surprised that number is so low. i would think 100 percent of the women would want the guy to say, no, thank you for offering, but i have this covered which is what most say. if they say to my great,our half is $32.10, there is no second date. so at what point would you hope that the woman would -- melissa: this is an awkward conversation for me to have because i don't know how to handle it. at what point should the woman even offer? before it arrives, midway through, when you are arranging the date? >> i don't know that there is a set time, but at one point if you throw it out there, even if it is gratuitous as long as it does not appear ratuitous -- >> wish it is not offer an all? >> that's okay also. if it'song term, it's okay to lob one. not the first few days. >> if it becomes an established relationship it's different because even if your just dating

and not engage from married the money comes -- becomes one thing. if you're in an established relationship, that is different. it is fine. i do think it is interesting. how about if the woman makes more money? a professiol woman dating someone who is not making as much. melissa: ten seconds, is that something you would consider? >> it would not factor into it. chivalry, you can go with it. offer t pay up. if she makes ten times it does not matter. melissa: surely is not dead. thank you. up next, who made "money" today. the company that he co-founded has been left for dead more times than he cas to remember. today it is being buried in cash. you can never have too much "money." ♪

♪

lori: whether it is on wall street or main street, here is who made money today. anybody who owns like barry, the company's cofoder, blackberry formally put itself up for sale rowing in the towel on the effos to mount a comeback on its own 2 feet. it helps the stock leapin 10%. the one-day gainf $30 million. also making money, anybody who owns krispy kreme doughnuts. pointing to strong growth in same-store sales and existing revenue for the upgrade. the stock jumping 5%, not bad either. making record ratings. the final season premieref "breaking bad" doubled the ratings they got for last

season's premiere. very cool. that is all the money we have got for you today. we will seyou for more at 5:00 p.m. eastern. have a nice evening, everybody. the followings a paid advertisement for starvista entertainment and time life's music collection. ♪ chances are 'cause i wear a silly grin ♪ there are artists we'll always remember... ♪ mona lisa, mona lisa ♪ men have named you there are beautiful songs, words and memories that will always touch our hearts... ♪ it's imssible ♪ to tell the sun to leave the sky ♪ ♪ it's just impossible this is the sic of your life.