Why do rational investors throw good money after bad? This episode explores the Sunk Cost Fallacy and Short-Termism—the two cognitive distortions responsible for history’s most expensive disasters.

From the mysterious disappearance of the Roanoke Colony to the financial collapse of the DeLorean Motor Company, we analyse why the human brain refuses to cut its losses. We also examine the "Cane Toad" effect—how seeking immediate, short-term fixes often creates long-term ecological and strategic ruin.

In this episode, we cover:

• The Roanoke Trap: How the refusal to admit failure led to the total loss of a colony.
• The DeLorean Disaster: A case study in government "Sunk Costs" and the inability to pivot.
• The Cane Toad Effect: Why short-term efficiency hacks (System 1) often lead to long-term catastrophe.
• The Golden Goose: The mathematical stupidity of killing long-term value for immediate extraction.

This is the final lesson in our Decision-Making series: Learning to spot the difference between "persistence" and "digging a deeper grave."

UNLOCK THE STRATEGIST’S EDGE

Your inbox deserves substance, not filler. Download the 100+ page Business Strategy Toolkit - “From Purpose To Profit.” Includes strategy templates, decision filters, and customer understanding frameworks to dissect, diagnose & dominate your strategy. No spam. Just clarity & rule-breaking insight.

Download here: https://www.erinandreacraske.com/strategy-toolkit

IN THIS EPISODE

00:00 The Logic of Ruin: Introduction

00:46 The Lost Colony of Roanoke: When Sunk Costs become Human Costs

04:16 The DeLorean Disaster: How Governments Fall for the Sunk Cost Fallacy

07:47 The Cane Toad Effect: The Dangers of Short-Term Thinking

11:21 The Golden Goose: Killing Value for Immediate Gratification

KEEP IN TOUCH

1. Fancy weekly quick-read summaries? Subscribe here: https://erinandreacraske.substack.com/

2. Enjoy video content? I’ve got you covered. The UNBOUND MIND. UNBOUND SELF YouTube channel awaits.

3. Ready to ditch the 4S of Stress, Struggle, Suffering, and Stuckness in one go and for all? Drop me a line on www.erinandreacraske.com or find me on LinkedIn.

Time to set yourself free!

ABOUT UNBOUND MIND

UNBOUND MIND confronts the prisons of our own making: Stress, Struggle, Suffering, and Stuckness.

We operate on one radical truth: the psychological traps that sink businesses are the exact same traps that screw your life and your mental health.

Here, we dissect the cognitive biases, flawed cultural narratives, and comfortable lies that keep you trapped. This isn't about easy, ego-soothing answers. It's about giving you the tools of provocative thinking to reclaim your power, forge resilience, and achieve true cognitive freedom.

This channel is a toolkit for leaders, thinkers, and anyone ready to take responsibility for their own mind.

Subscribe to get unbound.