Usually step one in a recovery is admitting that you have a problem. I think that's an important thing for the Republican Party to do.

I also think the party needs to work on a couple different fronts. There are so many fault lines within the party: conservative vs. moderate, the more fiscally minded Republicans vs. the more socially minded Republicans, the Old Guard - the sort of Newt Gingrich-Karl Rove Republican - vs. the New Guard - the Michael Steele-Sarah Palin sort of emerging sect of the party. And the party has to decide what direction it's going to go in.

I think Republicans forgot how to communicate with the American people.

We need to tap into new issues. There's a way to resurrect the sound policies of our party, but also to look toward new issues - kitchen-table issues like the rising cost of education. I think that's a winning issue for Republicans.

I think the liberals are going to try to blame - and they already are - this entire mess on the right and on President [George W.] Bush. I think Republicans dropped the ball on actually articulating why we got into this economic mess, but it's not too late.

I think a New Guard-type of Republican - Eric Cantor is a rising star in the party.