"I don't think we have a battle for our soul -- I think we have lost our soul," he said. "We have been cowed into [sic] stop talking about the things that made us Democrats in the first place; that we believe the government can and should make a difference in people's lives; that we can protect the most vulnerable in our society; that we can, in fact, give opportunities to people who haven't had it. And that government can be an important catalyst -- they can't do it by itself -- but they can be a catalyst for growth."
That's what we believe in. But [Republicans] have us cowering behind the shower curtains," he concluded.
The Huffington Post approached Rendell after the affair and asked him to elaborate on what, exactly, he meant by saying the Democratic Party is soulless.
"We have been out-spun and we are scared," he said. "And when you are scared, you can do one of two things: you can circle the wagons and hide inside or under the wagon, or you can get out and fight for what you believe in. I think we are starting -- President Obama started when he went to the Republican caucus -- to fight back and for what we believe in. If we do that, I think our losses will be much less [in 2010] than what anybody suspects." (Source)
If the Dems lose in the next couple of cycles, it won't be because of what they stand for but because they don't have the spine to stand and fight for it. They will be perceived as the party of inept, bumbling, corporate sycophants.