An excellent article here
http://fivethirtyeight.blogs.nytimes...-the-election/
At 538, coupled with some economic knowledge the blog editor does not possess, sheds much light on how dim the prospects are for Obama to be re-elected.
First two charts from the article. The first plots the results of two polls for every year since 1974. One axis is the president's approval rating. The other axis is the percentage of people satisfied with the direction of the country. Obama's first 3 years are plotted with red dots.
Sometimes the president's approval rating is much higher then the percent that are satisfied with the direction of the country. Sometimes it lower. Sometimes its spot on. Obama has been well above. But the second chart is where it gets interesting. It only picks years from 1976 on where there was a presidential election.
The chart tightens up considerably. In fact, its almost dead on target. What does this tell us? One thing it tells us is that voters hold a president a lot more accountable for the direction of the country in the year they are voting for president, as compared to the other 3 years where they may give him a lot of slack. So for Obama in 2012, his approval rating will gravitate towards equilibrium with the percentage of voters who are satisfied with the direction of the country.
As of this posting, only 39% of Americans are satisfied with the direction of the country. As you can see on the second chart, the 3 points below 40% all were years where the White House changed hands from one party to the other. 1980, 1992, and 2008.
If the economy strongly rebounds in 2012, and American satisfaction with the direction of the country greatly improves, Obama will be in great shape. Will it happen? The 538 blog is not an expert on economics, so an answer to that question won't be found there. But we can look at Goldman Sachs' recent report on oil for guidance. They recently finished a study on oil markets and concluded that the NATO airstrikes and civil war in Libya will cause serious disruption in oil supplies and they call for $140 oil by the end of 2012. I trust their judgement, and given that bad news, I think the satisfaction number will fall from current levels. Voters will begin to take a more critical eye to Obama as they do for all presidents in election years, and he will not win a second term in 2012.
http://www.mmo-champion.com/threads/...40-oil-in-2012