Wall Street should be paying more attention to the 2008 congressional election than the presidential contest. 

The reason is simple, as well as one that eveyone -- networks, investors, commentators, etc. -- always seems to forget: Regardless of who the next president is, nothing will happen on taxes and spending unless Congress agrees to do it.

That makes the House and Senate results at least as important for the issues investors and those that serve them tend to focus on, like taxes and spending.

At this point a year away from Election Day, it appears that the Democrats can't help but pick up seats in the House and Senate. As many as six Republican-held seats are lookng increasingly possible to be won by Democrats. That would create a 55-43-2 Democratic majority. (The 2 are Independents Bernie Sanders (VT) and Joe Lieberman, who caucus with and more often than not vote with the Democrats.)

A 57-43 Democratic majority would be in striking distance of the 60 needed to stop a filibuster. On most issues, that would render the minority relatively powerless to stop legislartion from moving ahead as the GOP has effectively been able to do this year.

The numbers in the House are somewhat tougher to predict at this point, but a 250-185 spilt, a pick up of about 17 seats from the current levels, is now considered possible.