Dean Baker has a new book, The End of Loser Liberalism available free in PDF form.
Baker argues that Liberals have been accepting the Conservative line that they favor market solutions. This puts the Liberals in the position where they look like they are just trying to bail out the losers in the competitive market place.
In fact, the Conservative line is a lie, as they support all kinds of government limitations on the free market—so long as they favor the rich. Baker puts forward proposals that restructure the market to as to benefit "the bulk of the working population rather than just a small elite."
I've just started the book, but his basic analysis of the Republi-CON seems right on target.