Greece's Reality Gap

As per the FT, the IMF is of the view that either Athens takes drastic austerity measures or eurozone bailout lenders will have to agree to debt write-offs to get Athens’ debt back on a sustainable path:

"The IMF thinks the gap between the two realities is very large right now."

The optimism espoused by Greece, and some participants of the ongoing talks, is clearly misplaced (no surprises there then!).