Put it in a historical perspective. 1986 was a very similar year. Like 1986, it's a setback, but the real war had already been won. We won in 1984 just like we won in 2004, which means that we remain in charge of destroying the Soviet Union and the Islamofacist, respectively.
No, 1986 was not a similar year. The Rats won Senate seats that we unexpectedly got in the landslide year of 1980. This year, the Rats won additional seats that they failed to win in what, for them, was the good Senate year of 2000. We also did not lose 32 or so seats in the House in 1986. Election 2006 was a horror, and short of a political earthquake that is almost impossible to foresee, we will not be able to repair the damage in 2008. Likely as not, it will get worse before it begins to get better.
Two silver linings: One, Bush is through as GOP leader, and deservedly so. Same with Frist and Hastert. Good riddance, chumps. Two, the American people will get a slightly better idea that it's really the Rats who are running things in this country. This was a hidden reality under the "Republican government" that accomplished almost nothing. Now it's out in the open. Are the American people smart enough to learn the appropriate lessons. Stay tuned. I wouldn't bet on it. But we can hope.