If Democrats lose seats as expected in this year's Senate and House elections, they will have earned it. And the blame lies squarely on the President's shoulders. Barack Obama came to office determined to be a new Lincoln. What I believe we needed was a new FDR.

Philadelphia officials set a disturbing precedent when they recently sent out demand letters to local bloggers and website operators to pay a business licensing fee and fork over a portion of their nonsalaried income, or face stiff penalties. Will other cash-strapped cities follow Philadelphia's lead and tax bloggers as business owners? 

In 2008, the California city of Vallejo took the unprecedented step of filing for bankruptcy. A combination of falling revenues caused by the collapse of the real estate bubble and rising public pension costs cratered their finances. Other California cities and counties are watching how Vallejo manages, and may well follow suit.