Of all the punditry & comments by useless hacks, I think this sums up situation in the most concise terms possible:
The fundamental narrative of the Democrats came down to "it really isn't as bad as you think it is and we're trying and just give us more time, and you don't really need to be this worried, it will all be ok soon."
But the problem with anything that de-legitimizes the real experience and real emotions of ordinary people is that it feels false - the Tea Partiers may have been lying about immigration and mosques as central issues, the traditional Republicans trying to blame Obama for a recession that started firmly on their watch, but their lies weren't as big as the one that said "it is all basically ok, you are over-reacting."
Given a choice between two lies, one immoral but at least marginally plausible (scapegoating has a long history and the dubious charm of familiarity to many), the other viscerally, obviously false, it isn't too surprising what the outcome was.
The Election is Over - Now What Do We Do With All the Fear?
[Emphasis Added]
You should read the rest of the author's blog, she's got great insight.
But she is right.
At its core, a surprising number of the administration's policies have been based on denial & lies (they prefer to call the lies "messaging"). HAMP, Afpak, as well as the industry friendly health care & finreg bills being prime examples.
However, the opposition's policies are based merely on lies. They are clearly not in denial about their homophobia, desire for plutocracy, global war, and bigotry towards Latinos. (And yes, they are in denial about their bigotry towards those of African descent, but as predictable as they are, that denial shall end shortly.)
Obama's crew has denied that Bernanke, Geithner, Summers, DADT, indefinite war, etc. are part of the mess we are in. Then they lie and claim they believe in LGBT equality while subverting it; they claim 9.6% unemployment isn't a big deal & we should be thanking them for it.
Rethugs wanted Bernanke's head on a stick from the get go, openly called for Summers to resign months ago, and labeled Afghanistan "Obama's War." No, they aren't crazy about gays, but at least they aren't in denial about it, unlike some people, or the mess in AfPak, or the Summers/Geithner/Bernanke menage-a-trios.
So basically, part of the reason Democrats lost was simply because the other guys aren't as up to their eyeballs in denial. And cynically, the administration truly seems NOT to believe this, as they fault their "messaging," not their actions.
If current trends continue, and there is no evidence to the contrary, the dynamic that caused the election results will continue apace. Rather than what we voted for, we will get more lies "messaging," denial, Newspeak, and tax cuts we did not ask for.
In an interview with 60 Minutes tomorrow, your President will say "leadership isn't just legislation... it's about persuading people..."
Now stop and think about that. If he isn't doing legislation, what is he going to be doing? Further, who does he think is he trying to persuade?
It's change you can believe in.