Well with the amount of money and energy the media is spending on pushing the "Bush is a liar!" theme, I'm surprised his approval rating isn't in the 20% range. This White House doesn't seem to take these things seriously enough - I guess they expect events to bail them out. But Clinton introduced the "permanent campaign" to Presidential politics, and the genie is out of the bottle - whether Bush wants to play the game or not, if he wants to get reelected, he'll have to.
I don't think people think Bush is a liar. However, people are hurting out there. Where I live (Mason County, Michigan) 29.8% of my township are on unemployment. This is no lie. Check out the stats on
http://www.michigan.gov Flint / Saginaw area are about 15%. That's the percent of people who qualify for unemployment. Double it for the number of people hurting from lack of steady work, part-time slow death, etc.
I think, though, that these people will still vote for Bush.