The old political hands in the Labour Party at least knew that they had to talk down their prospects (beyond the usual nonsense about fighting to win). Lord Mandelson was right to fight this election as the underdog because this now looks in some ways like a victory.
In fact this is a massive achievement for the Conservative Party. When David Cameron took over in 2005 many Tories would have settled for this result. They should always have been fighting a two-election strategy. But the Conservative Party allowed itself to get overexcited about the possibility of outright victory. The Liberal Democrats allowed themselves to dream and find themselves bitterly disappointed this morning.
The reality is that we still have Gordon Brown as Prime Minister and that is a nightmare for his own party as well as the Tories and the Lib Dems.