IMHO, last night's losses to Republicans were indeed a referendum on President Obama--who is being punished because he has not kept his campaign promises, as Arianna Huffington argued the other day.
To turn the situation around, the Democrats need to go back to basics, and to the principles upon which the President campaigned, as Arianna noted: "Change We Can Believe In" and "Yes, We Can!"
Some concrete steps:
1. Fire Timothy Geithner as Treasury Secretary.
2. Replace him with Paul Volcker.
3. Announce a high-level investigation into allegations of violations of securities laws by Goldman Sachs.
4. File motions in the ongoing CIT bankruptcy case to recover $2.3 billion in taxpayer bailout money before creditors are paid.
5. Put Howard Dean in charge of Health Care Reform.