Also via the Instapundit, this Matt Yglesias post:
Seriously, in my experience these damaging-looking allegations have a way of turning out not to be true, a fact that never seems to get as much coverage as the initial allegation. But it certainly looks bad from here, and I haven’t seen a good explanation yet, perhaps because there isn’t one. It’s a little hard to see what could possibly be the motive for a Kerry lie on this front, which makes it plausible that there’s a reasonable explanation, but also a little freaky if there does turn out to be one. Personally, I’ve never maintained that John Kerry had a George Washington-esque level of honesty (see, e.g., my article about how Kerry is basically lying about his trade policy) so my world won’t be shaken to the core if this turns out to be a fib.
Translation: He’s a liar, but he’s my liar.