<As for the Dems, they need a message and a leader. If they can get their act together AND if the economy doesn't recover, they can win it all back in two years.

This would require total annihilation of all major world terror organizations (won’t happen tomorrow), total and consistent capitulation from Iraq (Hussein will continue to test U.S. resolve) (and nothing spells war-disaster [for either war] so clearly as changing horses in midstream), and (not or) the current prez would need to screw up royal. For the Dems to gain the upper hand, it would also require that the DNC has, as you say, gotten a majority-viable message together and broadcast to their constituents, and that they have completely restructured their leadership.

As for the economy, America is learning that this is run by the world market, not the national market. Once the people have that all figured out, they'll know what to invest in to support the U.S. economy themselves. Won't be at all easy, because the buyers will all be waiting for that first buyer to buy (also referred to business as usual at NASDAQ). Trends aren't won overnight.

I think the DNC has a lot to prove to regain all that lost ground,
Dan