Analysts agree that Republican Scott Brown’s Senate seat win in traditionally Democratic Massachusetts augurs nothing but ill for President Barack Obama. Obama, facing declining approval ratings, is also facing a State of the Union address next Wednesday and, five days after that, must deliver his second budget. This, while trying to figure out a new way forward on the health care bill, the future of which is in jeopardy after Brown’s election cost the Democrats their filibuster-proof majority.

U.S., President Obama and Treasury Secretary Tim Geithner. Photo credit: Downing Street via Flikr

Dan Pfeiffer, White House Communications Director, responded to rumours about what the President’s next steps will be on the White House blog yesterday, writing, “[L]et’s be clear that the President’s preference is to pass a bill that meets the principles he laid out months ago: more stability and security for those who have insurance, affordable coverage options for those who don’t, and lower costs for families, businesses, and governments.”

Pfeiffer, however, did not clarify exactly what form these principles would take, nor did he elaborate any further.

According to The Associated Press, Obama and his allies signaled yesterday that they’re looking to scale back the sweeping health care reform, in effort to keep some part of it alive. A new, slimmer bill emerged shortly after news of Brown’s win, The Associate Press reported, and Democrats are currently considering all their options. Obama has also reportedly told Democrats not to attempt to push the current bill through before Brown takes office.

See the White House’s full assessment and explanation of the health care bill here.

During a press briefing yesterday, White House press secretary Robert Gibbs admitted that Brown’s win shook the balance of power in Washington and acknowledged that American voters are “angry.” “That anger is now pointed at us because we’re in charge, rightly so,” he said, adding, however, that the Administration will continue to pursue its policy objectives.

Obama told ABC’s George Stephanopoulos yesterday that his Administration was “just so busy getting stuff done” and dealing with more immediate crises that they ceased to speak directly to the American people. Americans, he said, were frustrated and feeling detached from their government.

On the economic front, The Financial Times wrote today that top Democrats and even some Republicans feel that Obama needs to stop relying so heavily on the advice of economic advisor Lawrence Summers and Treasury Secretary Tim Geithner. The Washington Post reported that Obama’s primary directive over these next few weeks and months, especially as America approaches country-wide mid-term elections for Senate and House seats, will be to reassure the American people that he is concerned with righting the economy and is making economic security a priority.

The Washington Post also offered a bit of perspective on the relentless predictions of Obama’s doom: Speaking to Anita Dunn, former Obama White House press secretary and now sometime communications advisor to the Administration, the paper asked her if the President was having a bad day. Dunn laughed. “Why? Because he’s only got 59 votes in the Senate? Can we get a little perspective here, people?”