Comment Re:Sunk cost fallacy (Score 3, Interesting) 485
The money that was loaned to Greece has been lost. The whole crisis is about everyone involved being unwilling to accept this reality and thinking that the money will somehow magically come back once the Greeks have been punished sufficiently.
Remarkable the extent to which economists agree with you and to which politicians disagree. Gee, I wonder who's right?
Most notably, in the last bailout plan, the IMF called for growth in the Greek GDP to top 4% within a few years, and that's what would allow them to pay back the debt. So, in a very short time, while constrained by harsh austerity measures and with no ability to use govt funds to stimulate any job growth, Greece was supposed to leap from the bottom of the EU to the top in terms of growth. Yeah, right, pure fantasy--devised to soothe the lenders that somehow, some way, their investments in Greek loans are not a lost cause and that they will soon profit from them, if only Greece will get its act together and mumble mumble mumble something.
The underpants gnomes had a better business plan