WI:McCain-Palin/Other VP squeaks out victory over Edwards-Obama

So here’s a hypothetical:

2008 nominee is John Edwards due to delayed babygate. He picks Obama as his running mate.

Babygate comes out along the same time as the economy crashes.

McCain-Palin wins electorally due to babygate but Democrats win the popular vote and still take the House and Senate. McConnell loses his seat due to butterflies.

Economy gets worse under McCain.

Progressives form an ATL Tea Party.

How do you see 2010 Midterms playing out? What about 2012?
 
The affair was well-known for a long time, and if Edwards really seemed to be on the verge of winning the nomination, some of his ex-staffers would probably have gone public with it. Moreover it is likely that in OTL the reason the mainstream media didn't cover it more before August 2008 was that he had been eliminated as a presidential candidate, so covering it seemed to be unnecessarily adding to Elizabeth Edwards' pain. https://en.wikipedia.org/wiki/John_Edwards_extramarital_affair
 
So even if McCain does win, in his 1st term you will largely see ineffective economic policies by Republicans in order to mitigate the ongoing recession. 2010 midterms would be an absolute nightmare for the GOP, & in 2012 you would see an economic populist Democrat running for the Presidency, & he or she would most likely wipe the floor with McCain in the election. In terms of House & Senate elections that same year, the Democrats would mostly likely gain supermajorities.
 
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