Short Answer: Nothing.

Barack Obama is still President, the Senate Caucus still has sixty members (and will continue to do so unless Joe Liebermann screws up and follows through on his fillibuster threat), the House still has a Democratic majority, and a public option of some sort will be in the final health care bill that goes to the President's desk (though it might not get there until January). New Republican governors in New Jersey and Virginia change none of this.

Long Answer: Let's go through the results one at a time.

Virginia Governor

This one hurts if you're a Democrat. It wasn't even close. But before you give into the "Obama is doomed narative" here are three points to consider. First, Creigh Deeds distanced himself from the President until the last week of the campaign. Second, he opposed the Public Option in a debate with Republican candidate Bob McDonnell and even speculated that he might opt out as governor. Third, he focused his campaign on McDonnell's twenty year-old master's thesis. Not surprisingly, the voters that gave Virginia to Obama last fall largely stayed home. Blame this one on a lukewarm candidate who ran as GOP-lite.

New Jersey Governor

Jon Corzine was supposed to lose this one and he did. His approval rating was hovering in the 30s and he was tarred, rightly or wrongly, with his previous position at Goldman-Sachs. The real surprise was that Corzine almost won anyway. Apparently New Jersey is so blue, that the best candidate the Republicans could find was now Governor-elect Chris Christie, the "law and order" attorney general whose own record was tarnished by improprieties (and a continuing association with Karl Rove). The race became a "lesser of two evils" scenario to such an extent that independent candidate Chris Daggett was briefly seen as having an outside shot.

NY-23

Wait? There was an election in New York's 23rd Congressional District, right? With all the buildup in the media, plus Sarah Palin's endorsement of Conservative candidate Doug Hoffman over GOP nominee Dede Scozzafava, we were all anxiously awaiting the results, and then . . . nothing. Was the election canceled? No, it's just that Bill Owens, the Democrat, won after getting a last minute endorsement by Scozzafava after she dropped out of the race. Well, it's not like a Democrat hadn't won the seat in over a century . . . actually that's exactly what happened.

CA-10

There was an election in California? Really? Yes, and the Democrats held the seat.

So the final scorecard was two governorships for the GOP, and a slight gain in the House for the Democrats. What an unmitigated disaster for . . . no one.