Wonkbook: Three reasons the debt deal collapsed  —  (Brendan Smialowski - GETTY IMAGES) Last week's sudden and inexplicable burst of debt-deal optimism is over.  But don't ask why the $4 trillion deal collapsed.  That's like asking why John Boehner didn't sprout wings and fly.

TIR Poll: Bachmann Overtakes Romney in Iowa  —  Minnesota Congresswoman Michele Bachmann has surpassed former Massachusetts Governor Mitt Romney in a recent Iowa poll that was conducted by TheIowaRepublican.com.  With Bachmann now leading in Iowa, Romney has fallen to second place …

News International papers targeted Gordon Brown  —  Newspapers obtained details from the former prime minister's bank account and legal file and his family's medical records  —  Journalists from across News International repeatedly targeted the former prime minister Gordon Brown …

Syrian protesters attack US embassy  —  BEIRUT (AP) — Syrian government supporters smashed windows at the U.S. Embassy in Damascus on Monday, raised a Syrian flag and scrawled graffiti calling the American ambassador a “dog” in anger over the envoy's visit last week to an opposition stronghold, witnesses said.

Economy Faces a Jolt as Benefit Checks Run Out  —  An extraordinary amount of personal income is coming directly from the government.  —  Close to $2 of every $10 that went into Americans' wallets last year were payments like jobless benefits, food stamps, Social Security and disability, according to an analysis by Moody's Analytics.

Panetta appears to link al-Qaeda presence with Iraq invasion  —  Pool/Reuters - U.S. Defense Secretary Leon Panetta delivers remarks to U.S. troops as he visits Camp Victory in Baghdad July 11, 2011.  Panetta arrived in Iraq on Sunday on his first trip there as U.S. defence secretary.

Obama vs. Obama  —  Not long ago, Obama warned that raising taxes in a struggling economy is “the last thing you want to do.”  —  In a 75-minute meeting Sunday night, President Obama once again demanded that more than $1 trillion in tax increases be part of any deficit reduction package attached to a vote on the debt ceiling.

Sarah Palin as Newsweek cover girl — again  —  As celebrity glamour shots go, Sarah Palin's cover photo on this week's Newsweek is danged good!  The best-selling author and reality-TV star looks young and vibrant.  Her devil-may-care countenance aided and abetted by the wind conspicuously blowing hair back.

No, We Can't?  Or Won't?  —  If you were shocked by Friday's job report, if you thought we were doing well and were taken aback by the bad news, you haven't been paying attention.  The fact is, the United States economy has been stuck in a rut for a year and a half.

‘South California’ for 51st state?  —  Fed up with Sacramento, a Riverside County politician seeks to break 13 counties away to form a state called South California  —  Supervisor Jeff Stone, a Republican pharmacist from Temecula, called California an “ungovernable” financial catastrophe …

BELTWAY CONFIDENTIAL  —  Paul Ryan accuser won't talk  —  Susan Feinberg, an associate professor of management and global business at Rutgers University, caused a stir in the left-wing blogosphere over the weekend with her account of witnessing House Budget Committee chairman Paul Ryan drinking …

McConnell: Casey Anthony verdict a warning  —  The Casey Anthony acquittal shows why U.S. civilian courts should not be trusted to handle terror-suspect cases, Senate Republican Leader Mitch McConnell said.  —  “We just found with the Caylee Anthony case how difficult is to get a conviction in a U.S. court …

Monetary Rage  —  We had dinner last night with Margaret Ray and Dave Anderson, the authors of the AP adaptation of our textbook (which is terrific, by the way).  Over our $22 bottle of wine, we talked about various issues involved in trying to explain economics — and everyone agreed …