I’m surprised in this octagon of talking heads how some are “shocked” that the TARP money is being used for other things. Do these people have no regard for the rule of law? No wonder why the markets keep tanking. What is good for Wall Street is good for the average citizen eh?

As for differences between the House and Senate. This is a problem. Years ago there was honor among staffs. Now there is distrust between certain staffs. Sometimes its a rivalry between House and Senate. Other times there are conflicts between majority/dem and minority/rep staffs working on the same committees.

By the way, today we saw a perfect example of this. On the Senate side Ted Stevens was hailed by his colleagues. Stevens is one of the senior most Senators…along with Kennedy and Byrd, to name a few. On the other side of the Hill, John Dingell, who will become the longest serving Member of the House of Representatives in February, was stripped of his Chairmenship of the powerful House Energy and Commerce Committee by Henry Waxman.

The implications for investors are important. Big John, as he’s known, built that Committee. It controls the legislation it does because of Dingell’s skill over the years. For Waxman to take control away from the senior most Member in the House says something…It says Pelosi wanted Waxman. Dingell and Pelosi have been at odds for some time now. Dingell represents Michigan and protects the autos. Waxman comes from California and is known for his attack hearings. If you’re a domestic auto company who would you rather deal with? This is a bigger story for the autos than an errant email.

Yesterday, beltway types knew what Reid and Pelosi said at the press conference…they did not have the votes to pass an auto bailout. With Dingell running his Committee, he would have traded votes for this bailout. Losing his Chairmanship makes that more difficult.