The Wall Street meltdown has claimed another victim, Guillermo de Toro has stepped down from directing The Hobbit “in light of ongoing delays in setting of a start date for filming…”

The problem is MGM’s poor financial situation. They currently have $4 billion in debt, making it difficult to finance new pictures and making the company unattractive to prospective buyers.

Hopefully MGM can get its act together and they can make a good movie.