Alright I know it isn't actually a done deal but The Politico.com is reporting that unless Thompson finishes a strong third in Iowa today he is dropping from the race.
DES MOINES, Iowa – Several Republican officials close to Fred Thompson’s presidential campaign said they expect the candidate will drop out of the race within days if he finishes poorly in Thursday’s Iowa caucus.
Thompson’s departure could shake up the race more than his continued presence. Friends and advisers said they have long considered it likely that if the lobbyist-actor is forced from the race he would endorse John McCain his former Senate colleague who lately has been staging a political revival in New Hampshire.
I hope this isn't true. If he can hold on 17 days then he can probably do well in South Carolina which could build momentum for the Super Tuesday primaries on the 5th (?) of Feb.
Over at Ace of Spades they aren't really buying into this story.
Fred Thompson, Iowa, President, Politics