1.  Poll shows Palin helps GOP with swing voters.  A recent poll by the Associated Press and GfK Research indicates that two-thirds of working-class whites who are likely to vote said that Governor Sarah Palin shared their values and principles.

The AP reported that Palin is providing the Republican ticket with an opening with those "who espouse traditional values but are working class and mostly concerned about the economy.  Some of them had previously supported (Senator Hillary) Clinton because she connected with them on pocketbook issues."

2.  Palin helping Republican Senate candidates.  Senator John Ensign of Nevada, the Chairman of the National Republican Senatorial Committee, said that Governor Sarah Palin has boosted GOP chances of holding key Senate seats.

Ensign had previously been openly pessimistic about the outlook for the 2008 elections.  However, he now believes Palin has "totally changed things."

"I feel better than I did at any time in the past," Ensign said.  "I think it is possible for us to hold where we are."  Republicans now control 49 seats to 51 for the Democrats.

3.  Karl Rove criticizes Palin and McCain.  Former White House Political Director Karl Rove, frequently called "Bush's Brain," made disparaging remarks about Sarah Palin's qualifications and said that John McCain had been "a hothead."

Rove also said the enthusiasm for Palin would subside.  According to Rove, Palin was a "political pick" and she was not the most qualified candidate.

In addition, Rove questioned McCain's previous demeanor. 

"He was a little bit of a hothead in 2000.He was angry after the 2000 election."  Rove added that the passage of time has caused McCain to "not hold grudges or be angry about things."

4.  Some see Bush as the new Herbert Hoover.  Several historians think President Bush may be held responsible for the collapse of the housing market and resulting economic problems in the U.S.

Beverly Gage, a presidential historian at Yale University, said "Bush runs a real danger of going down as a Herbert Hoover in this scenario.  He could be seen as the man held responsible for what is happening who stood by and didn't forge a clear direction at a moment when a clear direction is what was needed."

Gregory Hess, an economic expert at Claremont McKenna College, said Bush's conduct of the Iraq War and his domestic policies are likely to be linked because the U.S. must rely on foreign countries "to continue to finance the U.S. deficit."

Bob Bruner, Dean of the Business School at the University of Virginia, said the war deficits may have reduced the number of options the government had to respond to the mortgage crisis.

It is not clear what effect the current economic problems will have on the Republican Party in the 2008 elections and beyond.