Actually that's a pretty fair summary of the irrational behavior of the austerity fans.

You should have a look at the graph showing the degree of austerity (using a generally accepted metric) and the rate of recovery.

Note that austerity goes beyond cutting fat, it cuts to the bone and it does it without allowing time to adjust. It's a bad idea the same way it's a bad idea to unload a large stock holding all at once.

Greece has been cutting it's public sector quickly. So quickly that it has damaged recovery.

Look at the Guardian link I provided. Many of your comments and questions are answered there. It looks at how the degree of austerity measures has affected the rate of recovery for various countries.

Remember, not all public servants are equal. Privatization will cut the count of "public servants", but can actually increase the cost of the service for a net loss to the economy.

Actually, once they have once and for all ceased even trying to pay back the loans, they will be running at a surplus. A bit of currency devaluation will be a boon to their significant tourist trade.

I'm not claiming it is the best possible solution, but since the IMF et. al. won't quit flogging the dead horse that is austerity, it may be the only option open to Greece.

THIS! Mod up!

Don't forget visual impairment. They may be depending on the splat looking thing next to the red thing being the send button. Move it and good luck.

Sure, and then Greece will default and exit the Euro. That is probably the best outcome for Greece in the long run anyway. Of course, it will mean no more pay back on the debts at all and it will damage the Euro.

Remember, there are several other countries in a similar (but not as severe) condition as Greece. They are, no doubt, watching very carefully to see how this works out.

There's balancing the budget and then there's selling every productivbe tool and resource you have to balance the budget.

The first is sustainable. The latter works for about a month and then the next payment comes due and you don't even have the means to bring in money to pay it. The 'deal' being pushed on them was the latter.

The rest of Europe really doesn't want Greece to default and pull out of the Euro. Notice how once the referendum passed, the people rattling that particular saber started backpedaling. Greece going back to the Drachma could do Europe more harm than it does Greece.

The deeper you dig, the more it looks like the current situation was orchestrated to some degree. But the crooks in the banks that did the orchestrating don't get their payoff if Greece won't play along.

I'm just the messenger. I didn't perform the study.

But yes, early adopters will sometimes pick losers inevitably. I don't see why it would be so surprising that some would pick the losers more often than others.

No, I already offered a citation just as you requested. It's not my problem if you refuse to read it.

According to the study's authors (as quotyed by the Chicago Tribune) "Certain customers systematically purchase new products that prove unsuccessful,". Also: "Our findings challenge the conventional wisdom that positive customer feedback is always a signal of future success."

So they are saying that this sub-group's purchases of new products is indeed predictive of failure.

When you owe the bank a little money, you have a problem. When you owe the bank a lot of money, the bank has a problem. Guess which applies!

Carpenter sells hammer to make loan payment, income goes away and loan payment still due next month.

Clearly, do nothing isn't the answer but quit your job isn't the answer either.

There are cost cutting measures that may make sense, but that's not what is meant by austerity (perhaps it should be capitalized). Austerity (capital A) would mean cutting everything from roads to healthcare, pensions (not just future, but immediate, leaving people in the lurch), everything. The net result is mass unemployment and people moving from gainful employment to the dole. That, in turn leads to less taxable income and so deeper austerity measures to compensate. In other words, a death spiral.

On the other hand, shifting things around like making do with older military hardware in order to finance stimulus can make plenty of sense. Slowly raising the retirement age can make sense even though the payoff isn't immediate.

Sure, but the central bankers have been demanding full-on austerity.

So who cares if the austerity theory only works when 2+2=5, do it anyway? Sure, the last 50 people who drank Drano for their cold died, do it anyway?

They can't keep goint the way they have been, but that doesn't make austerity the answer. They need an answer that at least hasn't been shown to make it worse.