Would we be able to tackle the subprime mess head on if we are sitting on a massive budget surplus right now?
Same blame game, and more people unwilling to admit to any wrongdoing. Probably would make no difference. A surplus isn't always a plus, and deficits aren't always bad things if they're financing growth or making investment in infrastructure or in things like national defense that have unseen benefits that cannot be quantified. A surplus obviously isn't possible, or we'd have one. Foreigners are still willing to finance our deficits, so we don't have any problem operating forever as one until they stop being willing to finance us. I don't see that happening. Whether, I'm sure you're asking, we cut out defense spending we'd probably have other issues to face. Like roads, and the backseat to education. In the current turmoil it would make no difference, as the money would be in the government's hands, and not in private hands.