The Factor began Tuesday's program with the gubernatorial election in Virginia, where Republican Bob McDonnell trounced Democrat Creigh Deeds. Fox News correspondent Carl Cameron, reporting from McDonnell headquarters in Richmond, described the buoyant mood. "This crowd has been anticipating this for days," Cameron said, "and they have a victory in hand. There's now the question of what this really means for Republicans and Democrats. Just a few months ago a lot of political pundits were saying that the GOP was flat on its back, so this is something Republicans are absolutely delighted about." The Factor turned to FNC's Shannon Bream in New Jersey, where the polls were still open. "Minority groups were much more energized last year," Bream said, "when Barack Obama won his historic election. The president came here three times to try and motivate Democratic voters." The Factor added that President Obama had much at stake in New Jersey: "If the Republicans win the liberal state of New Jersey it's a huge, huge defeat for President Obama."

Former Bush strategist Karl Rove entered the No Spin Zone and exulted over the Bob McDonnell's easy victory. "Virginia to me is astonishing," Rove stated. "This is a state that went for Barack Obama by six percentage points, and Virginia moved away from the Democrats in Barack Obama's back yard. If I were a red state Democrat I'd be scared to death." Rove theorized that many voters were sending a blunt message to President Obama. "Virginia voted for Barack Obama because they thought he was a moderate, but he has governed to the left of that. They're disappointed in the direction he's taken so far."

Returning for another segment, Karl Rove analyzed President Obama's growing predicament regarding Iran's nuclear threat. "He has to do something," Rove declared. "He has engaged with Iran one-on-one but was then told no, and there must be a consequence. He has to say to France and Britain that we need to bring more pressure to bear on the Iranians. Maybe it means putting sanctions on - you can not let the Iranians get away with this and not have a consequence." The Factor added that President Obama faces problems beyond Iran's borders: "I'm losing confidence in the foreign policy apparatus of the Obama administration. He was doing well in Pakistan, but Afghanistan is a mess and the president is tentative. I'm disenchanted, but I'm not sure whether I'm being fair to the president."

The Factor welcomed Mathew Littman, a former advisor to President Obama, who denied that Tuesday's elections were a reflection on the president. "President Obama is still very popular with independents and Democrats," Littman asserted. "What's happening in New Jersey is that the state is in a lot of trouble and its economy is in the toilet - if you're in a state that's not doing well you're in trouble. And in Virginia, the truth is that the better candidate was the Republican, who ran as a moderate." The Factor reminded Littman that President Obama was heavily invested in a New Jersey Democratic victory: "Jon Corzine has been a terrible governor, but New Jersey is a hard-core left-wing state. People are going to say Barack Obama invested a lot of time in New Jersey and he failed."

The New York Times has disparaged Fox News anchor John Stossel for speaking at an event hosted by a conservative organization. Stossel entered the No Spin Zone to defend himself. "I make about 25 speeches a year," Stossel said. "I've done that for years, but suddenly now that I'm at Fox critics are leaping to attack me. I believe that limited government creates prosperity and I would like to share that with as many people as possible. We all have a point of view; I just admit mine." The Factor warned Stossel to expect more attacks: "When you're here at Fox you become a target, so they're going to find anything you do and put it in a negative light. You left a liberal network and went to a traditional right-wing network, so you're never going to be liked by anyone."

Two high school sophomore girls took risqu� photos of themselves at a slumber party and posted the pictures on a social networking site. Their school suspended the 14-year-old girls from participating in extracurricular activities, but the ACLU took umbrage and is suing the school. "The ACLU is definitely going to lose this case," Fox News legal analyst Lis Wiehl predicted. "School policy says that they hold their athletes to a 'higher standard,' so they can't do anything that will disrupt the classroom. It's written into the school code." FNC's Kimberly Guilfoyle agreed that the punishment will be upheld. "What the girls did was suggestive and inappropriate, and it's right for schools to have reasonable standards that students should adhere to."

The Factor asked Fox News anchor Martha MacCallum to analyze the latest exit polls in New Jersey and Virginia. "What I found surprising," MacCallum said, "is that a majority of Virginia voters think we'd be better off with less government, and that was clearly reflected in their support of Bob McDonnell. But in New Jersey, 51% of voters say the government should do more. Another interesting thing is that a majority of late deciders in New Jersey went for the Democrat Corzine, so it appears that the White House can feel pretty good about the work it did in New Jersey this week."

Finally, Fox News analyst Charles Krauthammer explained why he thinks Tuesday's elections were significant. "This completely explodes the mythology of the 2008 election," Krauthammer declared. "After the '08 election people talked about realignment and a new era and Republicans becoming a 'rump party of the South.' But '08 was an exceptional election with a charismatic candidate who had co-eds swooning in the aisle, a huge increase in African American turnout, and an economic collapse. A year later and we can see how ephemeral '08 was, but the Obama administration decided it was going to re-make America on the basis of a mandate it didn't have." The Factor suggested that ordinary folks, particularly independents, have grown disenchanted: "President Obama rode in and the confidence level was high that he could handle the job. A year later, I think that confidence level is down by 25%."