All the cash Obama wanted to spend on health care, education and infrastructure just walked out the door en route to Wall Street. He must either abandon his program, hike taxes on almost everyone or run a huge deficit.

His ties to unrepentent terrorist William Ayers will also draw new attention. The record clearly shows that Obama was lying when he called Ayers just a guy "who lives in my neighborhood."

Ayers got a $50 million grant for the Chicago Annenberg Challenge. Obama was put in charge of giving out the money and funded left-wing groups like ACORN for a program that's now billed as "school reform" but amounted to political indoctrination.

As Stanley Kurtz wrote in The Wall Street Journal, Obama and Ayers "worked as a team to advance the CAC agenda," namely "Ayers' educational philosophy, which called for infusing students and their parents with a radical political commitment, and which downplayed achievement tests in favor of activism."

So Obama will be in the spotlight on how he'd handle the economy and on whether he is part of the political mainstream.

Voters will still be in the mood for throwing the Republicans out of office, so Obama may not fall all the way down - but October will be no cakewalk for the Democrat.