- Tim Geithner will resign as Treasury Secretary. Sheila Bair will replace him.
I think that Barack Obama really believes that Geithner and Summers are the best people for the job, and he believes that the American people believe this too, and it's going to take a big clue stick, something like House Speaker David Boehner, to convince him otherwise.
I tend to agree that a change in party control is unlikely, but I think that there will be significant losses by the Dems, on the order of 30-35 seats, which will put the House in the 1981-83 dynamic, where the Democrats nominally controlled the house, but the Republicans could always peel away enough Dems to get their way.
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