An Unapologetic Dem-Wank:
Lose a Battle to Win the War.
New York Senator Hillary Clinton manages to narrowly beat Illinois Senator Barack Obama in the Democratic Primaries, after a long and bruising campaign. Clinton chose Indiana Senator Evan Bayh to be her running mate. Some suggested that she should have chosen Obama, but concerns over Obama overshadowing here were evident, and Clinton decided to cautiously choose her long-preferred and uncontroversial first choice. Hillary Clinton's campaign ran on her husband's presidency's track record, her liberal domestic agenda, and cautious criticism of the Bush foreign policy.
In opposition to Clinton was Republican Senator John McCain. McCain, a war hero and former prisoner of war during Vietnam, had served in the Senate for decades and was unquestionably qualified. However, if he were elected, he would be the oldest president ever. McCain had a "maverick" reputation, and had been known for breaking with the unpopular George W. Bush Administration on many issues. However, this led to many conservatives not quite trusting McCain. Hoping to assuage these concerns, McCain chose staunchly conservative South Carolina Governor Mark Sanford to be his running mate (allegedly after Louisiana Governor Bobby Jindal declined the offer, citing his inexperience and casting doubt on the idea he'd bring minorities who voted for Obama). The fundamentals of the election were in favor of Clinton, but McCain fight a tough fight.
The campaign was known for swinging back in forth. Both candidates made gaffes; Clinton when asked about the Iraq War at one town hall stumbled and gave a "I support and oppose it" comment, while McCain made some haphazard attempts to bring up the Clinton scandals from the 90s, a tactic which was panned. The debates, both presidential and vice-presidential, were widely considered to be a draw overall. Clinton failed to tie McCain to Bush as a "Bush's 3rd Term" due to the fact that her voting for the Iraq war made it difficult to attack him on the most important question of the day, and let him use his maverick reputation to run as a new type of Republican. Many Democrats hoped to attack the Republicans on the economy, but predictions of approaching disaster did not turn out, and were dismissed by McCain as unAmerican fearmongering. The polls were close heading into election day.
Election night did not provide a winner. Colorado, Indiana, Ohio, Iowa, and New Hampshire were all too close to call when the polls closed. Only after recounts in all of those states could McCain be certified as the winner. Hillary Clinton had narrowly lost the election. She took solace in the fact that the man she'd lost the election to was indisputably a well-qualified American hero.
With the Democrats narrowly winning the popular vote, they managed to make gains in the Senate despite their defeat in the Presidential election, and managed to win an outright majority for the first time since the 1994 Republican Revolution. The Democrats would take another seat when Arizona governor Janet Napolitano appointed a Democrat to succeed McCain, but this would be countered by Connecticut Governor Jodi Rell appointing a Republican Senator to replace Independent Democrat Joe Lieberman, who had been named Secretary of State. The Democrats took minor losses in the House, but retained a narrow majority. All gubernatorial elections went as OTL, except for Pat McCrory winning the North Carolina gubernatorial election, a victory which was not large enough to flip the North Carolina legislature.
On January 20, 2009, John McCain took office as the 44th President of the United States of America. In his inaugural address, he promised that new leadership would see an end to the divisive Republican Party of the previous decades, victory in the Middle East, and continued prosperity. He reiterated that the fundaments of the American economy were sound.
11 days later, the Lehman Brothers Financial Services Firm filed for Chapter 11 bankruptcy.