Democrats have been more down than the Dow Jones Index since the Republican convention. But there is a definite uptick this week, with one exception.

Here is my reading of the Democratic Election Mood Index (DEMI) as of today:

• The air is going out of the Palin bubble. Thanks, Tina Fey.

• Bad economic news is good political news. James Carville even declared Obama President when the stock market plunged Monday.

• McCain is losing momentum, especially now that the media has turned on him – and turned the Straight Talk Express into the Double Talk Express. Even more especially since he channeled Herbert Hoover on the fundamentals of the economy being strong.

• There still is nervousness that Obama may not be tough enough or mean enough and that the party will blow another one.

• Feeling good about the Senate race. Liddy Dole has been rocked by the attack ads, and Kay Hagan is looking better. More independent groups are looking at playing in this race.

• But there is near-panic on the governor’s race. One Democratic consultant said letting Bev Perdue debate five times amounts to political malfeasance.

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