Here's a pro tip: You can't bail anyone out if you don't have any money.
This isn't exactly breaking news, but it is a problem for Spain. Their government is running out of money, and so are their banks. This is normally the time to go to Germany for a sovereign bailout. But Spain has understandably resisted. They're terrified of fully surrendering fiscal sovereignty like Greece, Ireland, and Portugal. An even deeper depression would beckon.
So, instead, we get a game of chicken.
Let's step back a minute. Spain has a trio of problems. First, it has a frightening unemployment problem that's created a deficit crisis, due to its housing bust. Second, its banks have a bad loan problem, again due to its housing bust. And third, it has a capital flight problem. Depositors are moving their money out of Spanish banks into German banks -- some €100 billion or so in the first quarter of 2012 alone -- due to fears that Spain might devalue and abandon the common currency.
The chart below from the Institute of Empirical Research at the University of Osnabrück (via FT Alphaville) basically shows how much each euro zone member owes or is owed by the ECB. It's a good proxy for how much capital flight there's been from each euro zone country. Spain (purple) is the worst, just edging out Italy.
Spain's banks are dead. Their assets and deposit bases are both evaporating. But the government can't afford to bail them out.
Here's how the game of chicken works. Germany wants Spain to formally accept a bailout package. It would be just on the edge of affordable for Germany right now, but it would give Germany control of Spain's budget. Not so surprisingly, this doesn't sound like a good deal to Spain. So instead, Spain has more or less asked the ECB to print some money and give it to their banks. There is precedent for this: It's basically what the ECB has done with some Greek and Irish banks -- although that was after those countries had already accepted bailout programs. The ECB doesn't want to do this as a substitute for an outright bailout, so it has said no. Hence, the standoff.
Spain has another problem. They don't have much leverage. They can threaten to blow up the euro, but it's not that credible a threat. Even if Spain defaulted on all of its debt, it would still have a budget deficit of 6 percent of GDP. It would have to cut spending or raise taxes by roughly that much -- or print the difference. In other words, a disaster. At best, Spain can hope to wrest a few concessions from Germany before accepting a bailout -- like giving it more time to cut its deficit.
Italy should be paying attention. Like Spain, their banks are in trouble. But unlike Spain, Italy has a primary surplus -- that is, its budget minus its interest payments is in the black. A euro zone exit would still be a disaster, but it would be a manageable disaster. As crazy as it sounds, ex-Prime Minister Silvio Berlusconi is right: Italy should consider chucking the common currency if the ECB doesn't start printing money.
Things couldn't get much more upside-down now in Europe.
Science says lasting relationships come down to—you guessed it—kindness and generosity.
Every day in June, the most popular wedding month of the year, about 13,000 American couples will say “I do,” committing to a lifelong relationship that will be full of friendship, joy, and love that will carry them forward to their final days on this earth.
Except, of course, it doesn’t work out that way for most people. The majority of marriages fail, either ending in divorce and separation or devolving into bitterness and dysfunction. Of all the people who get married, only three in ten remain in healthy, happy marriages, as psychologist Ty Tashiro points out in his book The Science of Happily Ever After, which was published earlier this year.
Social scientists first started studying marriages by observing them in action in the 1970s in response to a crisis: Married couples were divorcing at unprecedented rates. Worried about the impact these divorces would have on the children of the broken marriages, psychologists decided to cast their scientific net on couples, bringing them into the lab to observe them and determine what the ingredients of a healthy, lasting relationship were. Was each unhappy family unhappy in its own way, as Tolstoy claimed, or did the miserable marriages all share something toxic in common?
He lives near San Francisco, makes more than $50,000 per year, and is voting for the billionaire to fight against political correctness.
For several days, I’ve been corresponding with a 22-year-old Donald Trump supporter. He is white, has a bachelor’s degree, and earns $50,000 to $60,000 per year.
He lives near San Francisco.
“I recently became engaged to my Asian fiancée who is making roughly 3 times what I make, and I am completely supportive of her and proud she is doing so well,” he wrote. “We’ve both benefitted a lot from globalization. We are young, urban, and have a happy future planned. We seem molded to be perfect young Hillary supporters,” he observed, “but we're not. In 2016, we're both going for Trump.”
At first, we discussed Bill Clinton.
Last week, I wrote an article asking why Trump supporters aren’t bothered that their candidate called Clinton a shameful abuser of women who may well be a rapist. After all, Trump used to insist that Clinton was a victim of unfair treatment during his sex scandals. Either Trump spent years defending a man that he believed to be a sexual predator, even welcoming him as a guest at his wedding, or Trump is now cynically exploiting a rape allegation that he believes to be false.
Finally, an explanation for Bitchy Resting Face Nation
Here’s something that has always puzzled me, growing up in the U.S. as a child of Russian parents. Whenever I or my friends were having our photos taken, we were told to say “cheese” and smile. But if my parents also happened to be in the photo, they were stone-faced. So were my Russian relatives, in their vacation photos. My parents’ high-school graduation pictures show them frolicking about in bellbottoms with their young classmates, looking absolutely crestfallen.
It’s not just photos: Russian women do not have to worry about being instructed by random men to “smile.” It is Bitchy Resting Face Nation, seemingly forever responding “um, I guess?” to any question the universe might pose.
This does not mean we are all unhappy! Quite the opposite: The virile ruler, the vodka, the endless mounds of sour cream—they are pleasing to some. It’s just that grinning without cause is not a skill Russians possess or feel compelled to cultivate. There’s even a Russian proverb that translates, roughly, to “laughing for no reason is a sign of stupidity.”
Wildlife officials have begun confiscating tigers from a popular tourist destination after allegations of animal abuse.
Wildlife officials in Thailand have seized some of the more than 100 tigers held at a Buddhist temple in response to allegations of mistreatment of the animals.
Six tigers were tranquilized and removed Monday from Wat Pa Luangta Maha Bua Yannasampanno, which is known as “Tiger Temple,” according to animal-welfare advocates. The temple is a popular tourist spot in Kanchanaburi province, where visitors are allowed to play with tigers and cubs and even take selfies with them. Government officials plan to clear the temple of all tigers, and will spend the next week removing the remaining 131 animals. The tigers will be transported to government sanctuaries elsewhere in the country.
For years, former temple workers and animal-welfare groups have alleged that the tigers have been abused—beaten, fed poorly, and housed in small concrete cages with limited time outside. Some conservationists say the monks have illegally bred and trafficked the animals. Temple officials have denied the allegations.
Studies have shown narcissists post more self-promoting content on social media, but it's not always so easy to tell if someone's doing it for the attention.
It’s not hard to see why the Internet would be a good cave for a narcissist to burrow into. Generally speaking, they prefer shallow relationships (preferably one-way, with the arrow pointing toward themselves), and need outside sources to maintain their inflated but delicate egos. So, a shallow cave that you can get into, but not out of. The Internet offers both a vast potential audience, and the possibility for anonymity, and if not anonymity, then a carefully curated veneer of self that you can attach your name to.
In 1987, the psychologists Hazel Markus and Paula Nurius claimed that a person has two selves: the “now self” and the “possible self.” The Internet allows a person to become her “possible self,” or at least present a version of herself that is closer to it.
The psychological origins of waiting (... and waiting, and waiting) to work
Like most writers, I am an inveterate procrastinator. In the course of writing this one article, I have checked my e-mail approximately 3,000 times, made and discarded multiple grocery lists, conducted a lengthy Twitter battle over whether the gold standard is actually the worst economic policy ever proposed, written Facebook messages to schoolmates I haven’t seen in at least a decade, invented a delicious new recipe for chocolate berry protein smoothies, and googled my own name several times to make sure that I have at least once written something that someone would actually want to read.
Lots of people procrastinate, of course, but for writers it is a peculiarly common occupational hazard. One book editor I talked to fondly reminisced about the first book she was assigned to work on, back in the late 1990s. It had gone under contract in 1972.
Three Atlantic staffers discuss “Blood of My Blood,” the sixth episode of the sixth season.
Every week for the sixth season of Game of Thrones, Christopher Orr, Spencer Kornhaber, and Lenika Cruz will be discussing new episodes of the HBO drama. Because no screeners are being made available to critics in advance this year, we'll be posting our thoughts in installments.
A long time ago, beds were expensive—but there's more to it than that.
With a guest in town occupying the second bedroom of our Manhattan apartment, my three-year-old son, a notorious sideways sleeper, bunked with my pregnant wife and me. Too many snores and little feet in the back of my neck, I relocated to the sofa, where I was blessed with the best night’s sleep I’ve had in months.
As a self-diagnosed insomniac, a good night’s rest for me lasts anywhere from three to five hours. I generally break up the slumber with walks around the apartment, followed by lying awake and unearthing inconsequential paranoia that, come morning, will not live up to the hype. When I hear people claim they get eight hours of sleep each night, they might as well be talking about the Loch Ness Monster, or alien life. All three are things I suppose it’s possible someone may have encountered, but I cannot personally confirm their existence.
For centuries, philosophers and theologians have almost unanimously held that civilization as we know it depends on a widespread belief in free will—and that losing this belief could be calamitous. Our codes of ethics, for example, assume that we can freely choose between right and wrong. In the Christian tradition, this is known as “moral liberty”—the capacity to discern and pursue the good, instead of merely being compelled by appetites and desires. The great Enlightenment philosopher Immanuel Kant reaffirmed this link between freedom and goodness. If we are not free to choose, he argued, then it would make no sense to say we ought to choose the path of righteousness.
Today, the assumption of free will runs through every aspect of American politics, from welfare provision to criminal law. It permeates the popular culture and underpins the American dream—the belief that anyone can make something of themselves no matter what their start in life. As Barack Obama wrote in The Audacity of Hope, American “values are rooted in a basic optimism about life and a faith in free will.”
The U.S. president talks through his hardest decisions about America’s role in the world.
Friday, August 30, 2013, the day the feckless Barack Obama brought to a premature end America’s reign as the world’s sole indispensable superpower—or, alternatively, the day the sagacious Barack Obama peered into the Middle Eastern abyss and stepped back from the consuming void—began with a thundering speech given on Obama’s behalf by his secretary of state, John Kerry, in Washington, D.C. The subject of Kerry’s uncharacteristically Churchillian remarks, delivered in the Treaty Room at the State Department, was the gassing of civilians by the president of Syria, Bashar al-Assad.