Prometheus said:
Why don't you come back in 3 months?
Three months? That's extreme. 6 weeks should tell the story.
Based on economic indicators, Bush is looking much better than he did two months ago. Consumer comfort index (based on how people feel about their current economic situation) is still negative, but not nearly as bad as it was in June. Consumer confidence index (based on what people expect their economic situation to be in 6 months) is the highest its been in two years (100 is baseline and the current 106.2 is pushing far enough above the baseline to be considered a solid indicator for Bush). The most negative indicator is jobs. The economy has to add an average of about 169,000 jobs a month from April to October to be a positive - there's only been three months during Bush's entire 43 month presidency that that's happened. You have a mixed economy in which there's a large disparity between the economic winners and losers - in other words, economic improvements pull in fewer votes if the economy's only improving for a portion of the voters.
Iraq is beating Bush up. The reasons advertised for invading Iraq have turned out to be vapor. The things pushed as pros now would not have been enough to win support for the invasion. Worse yet, things have not gone well. When we get militarily involved in nations where we have no critical interests, we either beat the crap out of our opponent (Serbia) or we leave as soon as we get a bloody nose (Beirut, Somalia). Invading Iraq has pushed us into a fight we can't afford to leave and we don't like having to fight with a bloody nose.
One big sign is the Bush campaign confidence level. Granted, the spring and summer have been brutal for the Bush camp, but they've given up on selling their own candidate pretty early and are already going with the "Kerry's even worse than me!" slogan. That's a subtle, but significant difference from 2000's winning campaign slogan, "At least I'm better than Gore!" It's goal seems to be to make Republican defectors running away from Bush so depressed that they just don't vote. (Of course, the flip side is that it just might open up old wounds for the McCain 2000 supporters and rile them up).
The polls in the swing states are looking pretty grim for Bush, but the consumer confidence index would suggest that they'll improve. Finally having consumer confidence index go over 100 right before the Republican convention is a huge plus.
People vote for the future more than the present. The key is the consumer confidence index for September (which comes out early October). If that's still over 105 (which is kind of like a high 'C' by the way), job growth suddenly and dramatically rises to 'average' level, the Bush administration claims "Peace is at hand" in Iraq, and enough mud has been slung back and forth to reduce voter turnout in November, it's probably enough to eek out a close victory for Bush.
Bad numbers at the end of September (if the job growth numbers stay weak, then 106 is a peak rather than a sign of the economy turning the corner) and who knows what's going to happen next in Iraq, and Kerry wins in an election not as close as people expected.