01/31/2012 08:50 am ET

Niall Ferguson: Krugman May Be Right, 'Very Large Debts Are Sustainable'

Unless countries get control of their ballooning debts, Ferguson has argued, we will be headed for crisis after crisis. And Ferguson remains convinced that Europe is on the edge of disaster.

But Professor Ferguson's take on the United States has changed notably over the past year. He still thinks the U.S. budget deficit is unsustainable and that our entitlement programs will ultimately have to be cut. But he has changed his mind about the U.S.'s ability to sustain its huge debt load.

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