Considering that the neocons had control of all the intelligence involving Iraq, and that the party leaders were publicly producing "evidence" of biolabs and such, that even they later admitted were stretches of their imagination, and proven to be bullshit, coupled with the anti-islamic fervor that was whipped up by the war-mongers, I can see how many were fooled into believing the bullshit.
I don't think recent events would have changed the outcome for Lieberman. He was seen as being to far away from the Democratic party thinking on too many critical issues. He lost because he ignored what his constituents wanted.
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