From the August 17, 2007, New York Times:
Workouts, Not Bailouts
By PAUL KRUGMAN
In April, Henry Paulson, the Treasury secretary, declared that all the signs he saw indicated that the housing market was “at or near the bottom.” Earlier this month he was still insisting that problems caused by the meltdown in the market for subprime mortgages were “largely contained.”
But the time for denial is past.