Well, of the 4 big elections (NJ gov, Virginia Gov, House election in Cali and NY) dems lost the govs and won the special elections. The house special election in NY the dems never should have won but thanks to the crazy turf war going on in the repub party, the dem won. Not since the civil war has NY-23 seen a dem house rep.
The repubs are using this as a referendum on the dems. After reading exit polls, it seems that it was not. 58% in NJ and 48% in Virginia said it was not about Obama. The repubs are using this as a weapon but don't be scared. There is a year before the midterm elections and if health care gets passed and if Obama can get those unemployment numbers down, then dems can turn around their approval rating (which by chance is still much better than repubs.)
But dems do need to get stuff done.