Musings on Markets: The SoftBank-WeWork End Game—Savior Economics or Sunk Cost Problem?

This article analyzes SoftBank's $8 billion rescue investment in WeWork following the company's failed IPO, arguing that the decision represents a classic sunk cost fallacy rather than sound financial logic. The author examines the role of fair-value accounting in distorting corporate decision-making and critiques the notion of 'smart money' in venture capital, contending that investor success is as much luck as skill.