KRUGMAN AGREES WITH ROUBINI

On 8/9/2007, Roubini correctly wrote:

Today we do not have only a liquidity crisis like in 1998; we also have a insolvency/debt crisis among a variety of borrowers that overborrowed
excessively during the boom phase of the latest Minsky credit
bubble.

On 12/14/2007, Krugman correctly writes:

...the problem with the markets isn’t just a lack of liquidity — there’s also a fundamental problem of solvency.

BONUS:

Most encouraging line of the day, inserted in italics at the bottom of Krugman's column:

David Brooks is off today.