I couldn't have said it better myself:

This election does not show that voters have abandoned their belief in limited government; it shows that the Republican Party has abandoned them. In fact, these results represent the total failure of big government Republicanism.

The Republican Party now has an opportunity to rediscover its identity as a party for limited government, free enterprise and individual responsibility. Most Americans still believe in these ideals, which reflect not merely the spirit of 1994 or the Reagan Revolution, but the vision of our founders. If Republicans present real ideas and solutions based on these principles we will do well in the future.

While some think we'll have buyers remorse in a few months, I really don't care.  The Republicans deserved the kick in the teeth they got for irresponsible spending.  As I said when I discussed my vote against Sensenbrenner, it wasn't a referendum on Iraq, it was a referrundum on how things are done in Washington.

Will and I have gone back and forth a little bit on whether a third party could be viable in this country, and we both agree that it won't happen.  What can happen is one of the two parties can decide to take on libertarian ideals of smaller government, increased personal responsibility, and more free market ideals.  We both think that the Republican Party is able to make this move easier than the Democratic party, and this loss could be the impetus.  As Will stated:

I think the third party that will crop up over the next 20 years will be rooted in the religious right. It will be supremely conservative and will, in their minds, abandon a Republican party that will forget about them (in the same manner people left the DNC after 9/11). This party will continue their fight against abortion and gay rights. They will rail against gambling and internet freedoms (porno) while pushing pro-family legislation (including making divorce more difficult and chemical castration mandatory for pedophiles).

I hope this comes true.  The reason that the Contract with America failed to be implemented was because they placated to the religious right and went after laws governing traditional values before attacking government excess.  The irony of course is that they only way to protect "traditional values" is to create government excess.  The sooner Republicans realize that and give up on it, the sooner they will be able to represent the people once again.