Well, Robert Reich is predicting it, which means it's probably not going to happen.
But it would be a good move for Obama. Dump, somehow, Joe Biden, and replace him with Hillary Clinton. The 2012 presidential campaign is going to be a battle for the American moderate -- or for those who describe themselves that way. In order for the Republicans to win, they have to appeal to and convert former Obama voters. And for Obama to win, he has to retain his voters, especially in the center.
Everybody hates to hear this, of course, on our side, but Hillary Clinton is the most popular politician in America.
So put yourself in his shoes: you get to dump some dead weight, re-energize your re-election campaign, hitch your wagon to the most popular political figure in America, and appeal to the center. (Because whether you think she really is a centrist or not, a non-trivial number of Americans think she is. And to win, Obama needs to recapture the center.)
Here's how I'd do it: I'd do it in June.
I'd have Joe Biden resign, to take over at State. Then I'd appoint Hillary Clinton to the vice presidency. I'd need the approval of both houses to do it -- the Senate would be easy, under Harry Reid -- and it might be a tough thing for House Republicans to refuse to do, considering Hillary Clinton is the most popular politician in America.
For her, it's a can't-lose proposition: either way, she's positioned to walk into the nomination in 2016.
For the right, it's a little trickier.