How and why are the Democrats losing?

This has got to be the biggest no-brainer election in the history of the U.S., possibly even in the history of the world. Winning an election after the what some consider the absolute worst President and world leader ever, George Bush, should be something the Democrats can win blindfolded. Our economy is tanking, gas prices are through the roof, we are stuck in a quagmire war in Iraq, the country's reputation is tarnished around the world, and yet voters seem eager to vote for a George Bush clone. It is absolutely staggering to consider the very real possiblity that the Democrats are losing the easiest election ever. How is this possible???