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McCain has a number of rather large problems coming into the GE, which will quickly become apparent once our nomination is over.
1. He has repeatedly said he doesn't really understand the economy. That's a huge issue in this election.
2. He is trying to conflate Iran and Al'Qaeda, and after Bush and Iraq, the American people won't have much stomach for trying to make two enemies appear to be the same.
3. He keeps insisting we are going to be in Iraq for a long, long time. What constitutes "victory" to him is fairly vague and won't be satisfactory after analysis, especially given the cost.
4. He talks of other wars to come beyond Iraq.
5. He can't court the independents AND the people who really, really like Bush (neo-cons/conservative base) at the same time. There's too large a disconnect between the two. Attempting to do so will undermine his Straight Talk reputation, and he won't be able to not talk about this issues once he is actually up against one of our nominees.
That said, I still think that the extensive infighting in the Democratic party will hurt us. Winning by a narrower margin will give the next President less of a mandate to accomplish the goals they have. It will also likely negatively impact our control of the Congress. I just don't think it is likely that McCain will ever look like a better choice once a campaign against him actually begins (you just can't really reconcile the ~33% who approve of Bush with the 66% who dislike him, and McCain is increasingly making himself incapable of distancing himself from Bush).
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