If I were Obama, I'd rather lose the election than win and have Hillary as my Vice-President. It's perfectly fine for someone to chose their rival for the VP slot. Reagan did it. Kerry did it. But it only works when the VP is willing to wait 8 years for their turn. Hillary isn't going to wait until 2016 to get another shot at the White House.
I'm actually living 4 years in the future. Too bad I just blew my cover.