During a segment with Steve Schmidt and Howard Fineman about the new budget proposal, Matthews laughed at Sarah Palin and himself.

The trio said Republicans need to be willing to negotiate but lamented that they did not think that would happen. Matthews asked Schmidt, a campaign advisor and strategist for McCain in 2008 and now an MSNBC contributor, if he regretted the move away from what Matthews called the "responsible Republican party" to obstinate Republicans unwilling to negotiate - like Palin.

Fineman chuckled while Schmidt responded.

Matthews with a smirk added,

Yeah, yeah at least I got my thrill up my leg from uh... I got my thrill up my leg from Obama! You got it from Sarah Paaaa!

Matthews did not complete Palin's last name he was laughing so hard.