Netanyahu succeeded in fooling some Israelis and Americans, especially those who wanted to be fooled. Labor wanted to join the government and become ministers, and Peres tends to believe in people who tell him what he wants to hear. Obama is just very rational and believes in the power of reason, so he also thought Netanyahu follows some basic logic. But Yahoo's luck is running out. Nobody believes him anymore after seeing his actual performance. The easiest decision one can imagine, to extend the freeze by a miserable two months period and in return for major US inducements (such as more money, and vetoing anti-Israel UN resolutions), were rejected by Netanyahu. Who can now believe that he is going for a peace agreement? It seems clear indeed that Labor will quit the coalition in a short few months. We are seeing a repeat failure by Netanyahu, whose first term in office also lasted less than 3 years.
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from the article: ANALYSIS / Netanyahu, Abbas and the battle for the U.S. press