My hat goes off to the Japanese women’s soccer team as they beat the US for the World Cup yesterday in Germany. It was not as if the US team didn’t have their chances, but the patience and persistence of the Japanese led them to come back for being down a goal twice to win in penalty kicks. It also goes to show you that a goalie can make all of the difference in the outcome of a game.

The fireworks were not only happening in Germany, but the entire Euro zone on Sunday. Here are just a few tidbits from overnight trading – remember to watch the markets and not conflicted politicians and economists:

• Italian and Spanish 10-Year bond yields climb above 6% for the first time in the Euro-era
• Portugal 2-Year Note trading at Euro-era record of 20.1%
• Ireland 2-Year Note trading at 23.3%
• Sean Egan of Egan-Jones stated in Barron’s this weekend that he sees 90% bond losses in case of Greek default (This is a firm that actually made some correct calls as the were negative on Lehman Brothers, GM, Countrywide and AMBAC)
• Gold is up for the 11th day in a row

Oh and S&P ratings threatened to downgrade all US financial firms and Fannie Mae and Freddie Mac if the debt ceiling debate was not resolved soon. So the rationale here is that we need to pass a law to increase the debt ceiling to take on more debt, which would be good for the debt ratings of these firms in the face of slowing global growth. Now onto some Monday morsels. Stay tuned! {TJM}

If China were to increase its gold reserves to the global average of 11%, it would require 2 years of global production to reach that level. With central banks across the globe fortifying their balance sheets, the additional demand for gold tonnage should continue to propel prices dramatically higher. ~Standard Charter

“The administration today will announce that two programs providing unemployed homeowners a few months’ forbearance on their mortgages will be extended to 12 months, said three administration officials speaking anonymously because the program has not been announced. Thousands of homeowners could benefit from the additional time, although not all jobless homeowners will be eligible. The action is being taken as part of the administration’s effort to help prevent foreclosures while unemployment remains above 9% and the economy struggles to rebound.” ~USA Today

According to the IRS, people in the top income-tax bracket earned about $1.2 trillion in 2008—the most recent year for which the IRS has published data. The federal deficits for fiscal 2009 and 2010 were $1.4 trillion and $1.3 trillion, with fiscal 2011 still on track to tally a deficit of $1.5 trillion. Consider it carefully: The current deficits are greater than all the taxable income earned by the richest citizens. ~Barron’s

The Week: The ‘enraging’ salaries of America’s top execs | $10.8 million Median pay in 2010 for top executives at 200 large companies, according to an Equilar report commissioned by The New York Times. “Total C.E.O. pay hasn’t quite returned to its heady, pre-recession levels — but it certainly seems headed there,” says Prandyna Joshi in The New York Times.

Leslie Hannah, a business historian at the London School of Economics, analyzed what happened to the world’s largest companies (as measured by stock-market value) between 1912 and 1995. The winners more than made up for the losers, but most didn’t win. By 1995, only half the 100 largest concerns survived in their original form; fewer than one in five stayed among the 100 biggest; and only a third finished larger than they began. The rest shrank, died or got digested by other companies. Adjusted for inflation, the typical blue chip finished the period at only 40% of its original market value. ~WSJ

“Policy ideas include having taxpayer-owned mortgage giants Fannie Mae and Freddie Mac relax their rules for loans to investors, allowing those buyers to vacuum up excess housing inventory. In certain markets, Fannie and Freddie could hold some foreclosed homes off the market and rent them out to ease the property glut. Officials also could sweeten incentives for banks to reduce loan balances for borrowers who are underwater, or owe more than their homes are worth.” ~WSJ

At the year’s half-way point, the average hedge fund was off 2.12%, preliminary data from Hedge Fund Research show. By contrast, the S&P 500 gained 6%. Only six months ago, few investors would have forecast that as of June 30, Paulson’s flagship Advantage Fund would have lost 15%, or Einhorn’s Greenlight Capital would be down 5%. Even Louis Bacon’s flagship Moore Global fund, which has boasted average annual returns of 19% for more than two decades, was down 5% for the year through June 16.  ~Reuters

Fisher Investments Inc., the firm run by Forbes magazine columnist Kenneth Fisher, may have to pay damages of $376,075 for breaching its fiduciary duty to a retired investor. Sharyn Silverstein, 64, is entitled to out-of-pocket losses she incurred as a result of Fisher Investments liquidating her bond portfolio and investing 100 percent of the proceeds in stocks, according to a copy of the interim arbitration award obtained by Bloomberg News. Silverstein had invested with Fisher in 2007 after multiple calls and visits from a Fisher outside salesman. She had initially contacted the firm after seeing a Fisher advertisement for a complimentary book in USA Today. ~InvestmentNews

Commissioners of DeKalb County, an Atlanta suburb that lost its S&P bond rating in March, raised property taxes today to rebuild its finances. The commission agreed to increase its tax rate by 26%, which will bring in ~$50 million in new revenue per year.

So the fondest Washington hopes for a grand debt-limit deal have broken down over taxes. House Speaker John Boehner said late Saturday that he couldn’t move ahead with a $4 trillion deal because President Obama was insisting on a $1 trillion tax increase, and the White House quickly denounced House Republicans for scuttling debt reduction and preventing “the very wealthiest and special interests from paying their fair share.” ~WSJ

“AARP will not accept any cuts to Social Security as part of a deal to pay the nation’s bills,” said CEO Rand. “Social Security did not cause the deficit, and it should not be cut to reduce a deficit it did not cause.  As the President and Congress work to negotiate a deal to raise the debt ceiling, AARP urges all lawmakers to reject any proposals that would cut the benefits seniors have earned through a lifetime of hard work.”

“Every employer making payment of wages shall deduct and withhold upon such wages any amounts so elected, and shall pay such amounts over to the Secretary of the Treasury.” ~ Bill Proposal HR 2411 Reduce America’s Debt Now Act of 2011

When the new Qingdao Jiaozhou Bay Bridge opened to traffic this week in China, it made the Guinness World Records for the longest cross-sea bridge in the world. The 26.4-mile long and 110-foot wide bridge stretches across the bay, linking the Huangdao district to the city of Qingdao and Hongdao Island. China spent 17 years planning and designing the engineering marvel to be able to withstand the bay’s high salt content and icy winters. Yet, it only took four years to build, with at least 10,000 workers on the construction team. The Xinhua news agency says about $2.3 billion was sp
ent, and 450,000 tons of steel and 81 million cubic feet of concrete were consumed in its construction. ~US Funds

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