Why hasn't the news media noticed this? Obama is stumbling in his catastrophic descriptions of the effect of the sequestration, mainly because he believes all that guff. Everyone he knows - virtually everyone he's ever met, works for the government. Even the people he knows who have real jobs, are only acquainted with him because they 'also' work for the government in some capacity. So to him, any cut in government would naturally seem catastrophic. It's the opposite of the Pauline Kael issue. Its going to effect absolutely everyone he knows.
But the big hole in the Obama world view and the reason it's turning out to be a total sham is that most of the the things the federal government does don't matter to anyone except the people in the federal government who do them. The only cases where that doesn't apply are the things that Obama thinks we do too much of anyway, like defending the country.
To Obama, the person the rest of us see as the meddling and intrusive bureaucrat is the very center of civil society. Eliminate that 'public servant' who takes it upon themselves to make all the rules for the rest of us, and to him it seems that civilization will unravel before our very eyes. It won't of course, because there are very few points where the Obama worldview actually touches reality. But that's certainly why he thinks the end is nigh.