Greece – Deal or no deal? Parameters of a decision

It appears to me that much of the ongoing discussion about the Greek debt talks misinterprets the parameters of the challenge, and the resulting (irreconcilable) disagreement. Some economists attribute the standoff to the unwillingness of creditors to accept economic facts (Greece needs debt forgiveness and economic support). Austerians argue that only radical reforms and cutbacks will salvage Greece, and attribute the standoff to Greece’s unwillingness to reform. Though neither assessment is fundamentally wrong, both miss the political nature of the decision creditors faced.