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SEN. CHRIS DODD, D-CONN.: I have been a Connecticut senator for 30 years. I'm very proud of the job I've done and the results delivered. But none of us are irreplaceable. None of us are indispensable. And those who think otherwise are dangerous.

SEN. ROBERT MENENDEZ, D-N.J., DEM SENATORIAL CAMPAIGN COMMITTEE CHAIRMAN: I am convinced, having spoken to both of these gentlemen, that these are very personal decisions about this point in their life, their families and a decision to ultimately choose new opportunities in their personal lives. And so therefore we look forward to the races.

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BAIER: Well, the second key Democrat to announce he's retiring in the Senate, you saw, Chris Dodd; Byron Dorgan, as we reported last night, announcing they are retiring.

That's not all: The Colorado governor, Bill Ritter, also said today that he is stepping down, as is the lieutenant governor in Michigan, who was thought to be a frontrunner for that race, the Democrat Cherry stepping down there as well.

We are back with the panel. This is what Republicans are saying about it: Michael Steele, the Republican National Committee chairman, just released this statement, saying "These should serve as a major wake-up call to the Democratic leadership that members of their own caucus don't want to be held accountable to the voters they have ignored for the past year."

Mort, let's start with you. What is, do you think, behind some of these moves?

KONDRACKE: Well, both Chris Dodd and Byron Dorgan were trailing in their races. Chris Dodd was the number one most vulnerable Democrat running, and Byron Dorgan was probably number two. Harry Reid is probably number three.

So when Chris Dodd steps aside, he lets Dick Blumenthal, the attorney general of Connecticut, take his place and that's probably going to save the seat for the Democrats. Blumenthal is very popular. He's running 30 points ahead of the two probable, likely Republican nominees - the two rivals for the job.

It's practically a lead pipe synch that North Dakota will go back Republican if Governor Hoven runs. So now you have a situation where conceivably the Republicans could pick up as many as seven seats. There are seven seats that are now held by Democrats that are in play, but there are also about four that Republicans hold that are in play.

So the days of 60-vote Democratic majority are numbered, but how big the pick-up is going to be depends on the unemployment rate.

BAIER: Steve, Republicans are obviously trying to jump on this and these retirements, the switch of Parker Griffith in the House to become a Republican. But there are some discontent with Republicans as well. It's kind of an anti-incumbent, anti-Congress feeling out there.

Do you see the political winds shifting to the Republican way?

HAYES: I do, but only because I think people are expressing a more conservative sentiment. And you've got an issue set that you've dealt with in 2009 that we're going to be dealing with again in 2010 and I think exactly the kinds of issues that appeal to independents when you're talking about a dramatic growth in government that frustrate and concern people you're talking about.

Sort of the bigness of government generally is the kind of thing that makes independents more likely to side with Republicans. You've seen that in the past, you're seeing it again and you're seeing it in numerous polls.

The question I think becomes from Republicans, what can Republicans do to distinguish themselves from Democrats and how can they nationalize these elections as Newt Gingrich did so successfully in 1994.

BAIER: Charles, Republicans are leading in most generic ballot polls for the first time this early since 1994 when they took back the House of Representatives.

How much do you think health care has played a part? We had Ben Nelson, the Democratic senator from Nebraska say this to a newspaper in Nebraska: "I think it was a mistake to take health care on as opposed to continuing to spend time on the economy." This is a senator who was on the fence who voted for health care reform.

KRAUTHAMMER: Nelson is right on two counts: A, it was a distraction as the citizenry sees it from the main issue, which is the recession and unemployment. And secondly because the bill itself, the proposals themselves are so appalling that on the merits, on the substance, there's huge opposition. And I think that really hurts.

And of the two senators who stepped aside, Dodd is more of a personal issue in the sense that he had stains on his own record which were peculiar to him: His involvement with Countrywide, the failed sub-prime lender and the fact that he moved the family out to Iowa in '08 when he ran for the presidency, a run which discredited him in many ways.

Dorgan I think is more representative of the national trend and the winds blowing, because he's been hurt because of the huge opposition in his state on the health care issue, which all the liberal Democrats are tied to the mast on this one, and there's no escaping.

And so I think it does indicate that the Republicans have a chance of nationalizing this election.

BAIER: Quickly, Mort, do you think more retirements could come, because the Dorgan punch was a little bit of a gut punch to Democrats who perhaps thought that he was going to run.

KONDRACKE: Well, Harry Reid says he's not quitting, and Blanche Lincoln in Arkansas says that she's not quitting, and so far we don't know.

I would just add or reinforce what was said about the Republican problem is that they have nothing positive to say. They have not put forth an alternative agenda and Newt Gingrich did in 1994 and they've got to come up with one.

KRAUTHAMMER: With Obama out there, who needs it?