Is Obama Toast? Handicapping The 2012 Election

Americans are usually forgiving when they vote a man into the White House and he wants a second term. Of the last eight elected presidents, all but two — George H. W. Bush and Jimmy Carter — got their four more years. Which is why the conventional wisdom long held that Barack Obama would most likely weather his midpresidency slump to win another term.

Then came the debt-ceiling debates of July and August, which seemed to crystallize Obama’s vulnerabilities in a way that even the Democrats’ midterm disaster of 2010 did not. It’s probably because he handled the situation so poorly, simultaneously managing to annoy his base, frustrate swing voters, concede a major policy victory to Republicans and — through the fear imported into the market by the brinksmanship in Congress and the credit-rating downgrade that followed — further imperil the economic recovery. On Aug. 12, a week and a half after the debate ended in Congress, Obama’s stock on Intrade, a popular political betting market, dipped below 50 percent for the first time. It has hovered just below the 50 percent threshold, usually at about 48 percent, ever since.

Obama has gone from a modest favorite to win re-election to, probably, a slight underdog. Let’s not oversell this. A couple of months of solid jobs reports, or the selection of a poor Republican opponent, would suffice to make him the favorite again.

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