Another Round of Mortgage Problems?

If a significant number of people stop making payments on their homes which the mortgage amount is greater than the value of their home, that is going to put us into another tail-spin;

which is going to put more pressure on the already-weakened banks,

who are going to cut back even more on lending,

which is going to put more pressure on the economy,

which is going to depress the job market,

and put more pressure on the housing market,

leading to more delinquencies.

And if the economy gets stuck in the above described loop, will the federal government have the resources to come to the rescue?
It's great the financial markets have bounced back and the economy is slowly growing again, is it? But the ongoing problems in the housing market could still result in a “W” recession. Housing has always led us from the valley of a recession. Just not yet. What are your opinions?
Source: Numerous Internet Blogs and Articles