Are we in denial?  Joe Nocera makes the case persuasively in today's New York Times:

Last week, it was Fannie Mae and Freddie Mac that needed a government bailout. This week, it looks as though American International Group and Washington Mutual will be on the hot seat. We have actually reached the point where there are now only two independent investment banks left: Goldman Sachs and Morgan Stanley. It boggles the mind.

Wall Street constantly complains about how Washington incessantly debates issues instead of acting on them.  That's why its almost comical to watch the current situation as Wall Street continues to debate whether there is or will be a recession while Washington has already enacted legislation to deal with it.

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.