He lost the loyalty of the military a couple of days ago so you could say the writing was on the wall for the Yemeni president.

The Wall Street Journal:

Yemeni President Ali Abdullah Saleh and the country's top general are hashing out a political settlement in which both men would resign from their positions within days in favor of a civilian-led transitional government, according to three people familiar with the situation.

The outlines of that peaceful transition emerged amid rising tension over the standoff between the President Saleh and Gen. Ali Mohsen al-Ahmar, who earlier this week broke ranks and declared his support for the array of protesters demanding that the president step down immediately.

Opposing tanks from units loyal to Mr. Saleh and to Gen. Ahmar have faced off in the streets of San'a all week and tens of thousands of anti-government demonstrators continued their vigil in the capital's Change Square.

The people familiar with the negotiations said Thursday that Mr. Saleh and Gen. Ahmar are intent on preventing bloodshed and preserving stability in the Arabian Peninsula nation. Aides to both men said that while they both understand that Mr. Saleh's continued rule is untenable, they have agreed that the timing of his resignation can't happen until they have worked out the details of a transitional governing council that would take his place. They hope to have a detailed plan ready by Saturday, the people said.

The good news is that bloodshed will probably be avoided - at least for the moment.

The bad news? Yemen is poised to give al-Qaeda the sanctuary they so desperately want. The army and the president were stout opponents of the terrorists. The civilians - much less so. Some analysts believe that the mountainous regions of the country - as impenetrable as the topography of Afghanistan - will make a fine base for Al-Qaeda in Arabia:

The U.S. and the Saudis have watched with alarm in recent years as Yemen, under Mr. Saleh, has evolved into a failed state with shrinking oil revenue, an exploding population and conflicts with secessionists in the south, rebels in the north and an al Qaeda affiliate in rugged tribal regions. The U.S. has pushed the leader to enact democratic reform and has given tens of millions of dollars to elite counterterrorism units commanded by the president's eldest son and nephews.

Amid the current crisis, U.S. officials have worried that Yemen's security forces would be redeployed away from counterterrorism duties or that al Qaeda might take advantage of the crisis to launch new attacks.

Another failed state. Another safe haven for terrorists.