By JOHN FUND
Before Indiana Sen. Evan Bayh suddenly announced he will not seek re-election in November he had issued several warnings to fellow Democrats. Last month, for example, he told Gerald Seib of this newspaper that his party's liberals were "tone deaf" to the fact that they'd "overreached" in their agenda. "For those people," he said, "it may take a political catastrophe of biblical proportions before they get it."
Mr. Bayh knows something about high-water political floods. As a 24-year-old law student he helped run his father's 1980 Senate re-election and saw him go down to defeat under the Reagan landslide. In 1994, Mr. Bayh was governor of Indiana and thankful he wasn't before the voters when they revolted against Bill Clinton. "Every 14 or 16 years we seem to have to relearn this lesson,"
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