No, if it weren't for Obama, Hillary would likely be president right now. Palin totally ruined McCain's ticket, and she continues to ruin the party. She's the thing that wouldn't leave. I'm sure there are a lot of good Republicans but right now the party is controlled by the trash talking obstructionist Limbaugh types. They have to go. And you really do need a party leader right now who the people could envision as president. I don't think that day will come until the GOP as it stands today is totally dismantled.
I think by the time of the mid terms the economy will have recovered somewhat. Obama's stimulus will have some effect , but it will be primarily due to Fed policy and the natural economic cycle. That's what happened during the Reagan years, only his stimulus came in the form of tax cuts. Either way the defecit increases.
Some of the fundementals are much better than they were back in the 80s. Interest rates and inflation (at the moment) are low. Unemployment is not nearly as bad as it was at the end of the Carter years. There's a very good chance of a recovery with Obama getting a lot of credit, some of which may be undeserved (just like Reagan). Oh Well ....