Evan Bayh announced that he won't run for re-election, and since he is from Indiana, this represents an almost-certain loss for the Democrats. Now, I generally can't stand Bayh, because he likes to burnish his CENTRIST credentials by, um, being a vapid asshat. Of course, as much as one likes to bash Bayh, while he would extract his pound of flesh, he would eventually vote the way most Democrats vote, which is something that whomever his Republican replacement will do ~never.
But that's not my point. There's, not surprisingly, a very good correlation between the state of the economy and how well the incumbent party does. So the Dems are screwed. My only addendum is that if you read in the next little bit about how non-bad the economy might be doing come November, by then it is too late. I think there's good evidence showing that the state of the economy in the summer is actually a better predictor of voting than economic conditions on election day. Which makes Bayh's retirement even worse for the Dems. The midterms in '10 look like an oncoming bloodbath.