Yes.  They are denying they would need to file for bankruptcy protection, but it is something that could happen.  If deliquencies continue to mount, then at some point they will not be able to operate.  Huge layoffs or a purchase of Countrywide is probably the next step.

In other news, AT&T CEO stated that they are seeing slowdowns in their consumer business.  This is 100% proof of recession!  Remember, we called recession months ago, so this is not surprising.

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