In his entertaining lectures at Columbia Business School, the economist Bruce Greenwald likes to employ cite the line often used by Warren Buffett: When the tide goes out, you can see who is not wearing a bathing suit. This is the feeling I have in Spain. In year five of the financial crisis, I can see which of my relatives and friends had no swimming trunks. The slow downward slide is horrendous for the people living it. Over and over we see the bewilderment of those who worked hard and paid taxes. They don’t understand why they are seeing their first-rate healthcare system being undermined, pensions and salaries cut, and their education system — still not up to par — being squeezed further, while being told they have to bail out the banks because that is what Germany insists on. The downturn is persistent enough that the country’s largest bookseller, Casa de Libro, had a shelf dedicated exclusively to books about the “crisi” (see picture).
Although the Russians and the Chinese are reportedly fretting about the end of the world tomorrow — according to an interpretation of the ancient Mayan calendar — down here in the Yucatan, which was part of the Mayan empire, the locals couldn’t care less. Nor does anyone in Mexico City seem to notice. They are too busy thinking about what the new government is going to get up to. With its candidate, Enrique Peña Nieto, sworn into as president on Dec. 1, the Institutional Revolutionary Party (PRI) is back in power after 12 years out of office.