It sunk x41 and it might cause major problems for GWB if it keeps up at this pace.
Yes, could be. But Gore is such a blithering idiot, the Democrats have two bad choices: (1) keep Gore (I don't believe he'd win if the DOW hits 100) or (2) replace Gore, which is a crap shoot in that it would represent something of a reverse, but at the same time would be their only chance realistic chance at victory.
There is a war going on, and Bush has done quite well at it so far. I think in their hearts even liberals know that Gore is incapable of leading in wartime. After 9/11 you heard some fairly vocal (and bipartisan) sighs of relief that it was Bush and not Gore in charge.
And this economy is the result of things that happened on Clinton's watch, it is the same lack of morality of "teflon presidents" like Clinton who is proven a rapist but gets away that inspires all the Enron, WorldCom, etc.: that message needs to be driven home.
The only real challenge is the short attention span and pack mentality of the liberals, but I think it's quite surmountable in terms of the presidential race. It's the others we have to worry about.