This is not a good thing, not even for the Obama administration. Half of America is gasping; the other half rolling on the floor laughing. As my waitress at breakfast exclaimed, while reading the news over my shoulder, "For what?"
It's a good question. The nomination deadline was February 1, less than two weeks after he took office. The voting for the prize reportedly took place many months ago, so the possibility exists that Obama may even have won the prize prior to the Cairo Speech, which is arguably the only significant policy change that he has even announced (although not much followed through on).
It is indeed laughable. The Norwegians have made a laughing stock of Alfred Nobel's intent, of Norway, and demeaned each deserving person who previously won the prize by deserving it.