As I write, for the first time the Intrade odds have shifted to slightly favor McCain (although they are essentially tied).
Clearly McCain has taken the initiative, but he has had no setbacks for quite a while whereas Obama has been stumbling.
The debates are still ahead. The political terrain favors the Democrats, but they can no longer win merely by avoiding mistakes (unless the Republicans make serious ones).
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Perhaps the worst outcome for the country would be to have Obama eke out a very narrow win: e.g. via the House or the courts, or while losing the popular vote. Coming in a strongly Democratic year, that would delegitimize his Presidency before he ever took office.
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