Democrats hold a significant lead in the House of Representatives. They control the purse strings. Nancy Pelosi is doing the best she can with a 40+ vote majority. While a larger House majority would be nice, the House should not be our primary concern.
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It is the Senate that must "advise & consent" on federal judges (at all levels), ambassadors, cabinet positions, etc. Let's just suppose, for the sake of argument:
Guiliani gets elected president in '08 and Democrats have a 60+ majority in the Senate. Judge Mukasey, W's nominee to be the lame duck Attorney General and Rudy's close personal friend, could be shot down for the Supreme Court. Any of Guiliani's nominees for cabinet positions, judgeships, etc. would come under immense scrutiny (and many, like Bernard Kerik, shot down). Democrats can, and will, control the agenda.
This is why I continue to be focused on the Senate races. Democrats need to win 10+ Senate seats next year to control the national agenda. That's where I'm putting my money (such as it is) and my support.
What about you?