Tomorrow’s Election…………. US voters will be electing 33 senators and 435 members of the House of Representatives
Since 1860 there have been five congressional elections, like this one, held and in every one the president’s party loss a considerable number of seats (35 in the House on average) – a “drubbing” or a “wave” as they say in Wash DC.

Comments From the Future House Leaders…
Nancy Pelosi (D-CA) says “we win, we get subpoena power” (implying that the Dems will start hearings into the Bush admin)
Nancy Pelosi says the Republican Party is a “criminal enterprise”

Did You Know?
Pelosi will arguably be a very strong House Leader…since becoming Dem Leader she has raised more than $100mln for her colleagues. She has unified a fractious party previously, with House Democrats voting for the majority of their party 88% of the time in 2005- the highest total since records were kept starting in 1956.

Rep John Conyers (D-MI), future head of the House Judiciary Committee, accuses the Bush admin of “committing no less than 26 crimes;
Rep Charles Rangel (D-NY) (would be the Chairman of the all-powerful House Ways & Means) says “..you must pay for the war, don’t you?” (Implying that the new Democratic controlled congress or House will do what it can to pull funding for the Iraq war. There are 24 Democrats currently publicly calling for cutting off funding for the Iraq war right now.

Democrats vow to flex their subpoena and investigative muscles if elected to lead Congress next month and will take on President Bush's use of wiretaps.
"We have not had significant issues addressed from an oversight standpoint -- we've not issued one subpoena," said Rep. Bennie Thompson, the Mississippi Democrat who as ranking member of the House Homeland Security Department is in line to lead the panel.

Assume major Democratic gains between 20 to 25 House seats, and four to six Senate seats. The House goes Democratic for the first time in 12 years. The Senate likely stays Republican, but by such an small margin that there is no governing majority.
Given the comments from the new leaders-to-be, it would appear that they are obliged to hold hearings and investigations.
We would see Boeing (BA) given our intell on BA’s participation in the “Rendition” program – they are called “Pentagon’s travel agent” inside the CIA. Other co’s at risk include, but not limited to, EASI, HAL (selling KBR at an opportune time), the rest of the defense establishment.
Two stocks that we would have prior to 2006 considered to be at risk : Orbital (ORB) and GenCorp (GY). However, given the summer missile firings from North Korea, Iran, a missile defense system – albeit first generation with all the problems associated with being “First G” is better than nothing. SO missile defense is most likely safe.

Other less-than-popularly known co’s that would be at risk: US’ Blackwater Security Consulting who’s primary asset pre-Iraq war was a shooting range in North Carolina now has annual revs of $750mln. UK’s Aegis Defense Services was founded in 2002, two years later won a $500mln contract in Iraq.

What About Taxes?
A USA Today/Gallup Poll reported last week that 63 percent of Americans surveyed think Democrats are likely to "increase federal income taxes" if they win control of Congress -- though 74 percent said they disapprove of it

Did You Know?
The average loss for a second-term presidency’s party in its sixth year has been 29 House seats and six Senate seats. If you go back to Franklin Roosevelt’s second term, the House loss average jumps to 35. Thus a 25/6 House/Senate loss would be about (and slightly below) the historical average.

In his sixth year, the now-sainted Ronald Reagan lost eight Senate seats that gave the chamber back to Democratic control. That election was swayed by no wars, no weekly casualty figures, no major scandals. The first inkling of the Iran-Contra scandal broke on the morning after the election.

“Military” Papers Editors Call For Rumsfeld to Resign
It makes for powerful imagery – an editorial appearing in the Army Times, the Navy Times, the Marine Times and the Air Force Times calling for the resignation of Defense Secretary Donald Rumsfeld.
Many assume these publications are official or semi-official periodicals of the military branches, while they are actually under the same ownership as USA Today and under the management of an editor who has had his share of run-ins with the U.S. military in the past.
Shortly after Gannett bought the papers in 1997, the media giant installed as editor Robert Hodierne. He is best known for teaming up in 1969 with then-Associated Press reporter Peter Arnett in Vietnam to bring attention to a small group of American soldiers who refused to fight.