Toyota (TM) has been all over the news thanks to brake problems and subsequent recalls, and now the company is launching a bit of damage control.

Tuesday, Toyota had to recall 440,000 Prius and other hybrids thanks to brake problems, pushing the company's total global recall to 8.5 million cars and trucks. During the new conference, the company stated that it will "regain the confidence of our customers," trying to start a bit of damage control.

Looks like Former U.S. Treasury Secretary Henry Paulson may be headed back up to Capitol Hill soon.

On Wednesday, the Chairman of Congress' Financial Crisis Inquiry Commission (Phil Angelides) stated that Paulson may be one of the witnesses called to testify in front of the panel. Right after emerging from the panel's first meeting, the chairman of the bipartisan group noted that it "must examine" the financial institutions that did or could have crumbled if not for the help of the government.

Yesterday, the Washington Post reports that oil executives were marched up to Capitol Hill for their ritual slaughter before elections in November. But nothing will come out of it. Is this merely political posturing? Will the politicians actually do anything to force companies to ease consumers' pain at the pump? Should they? Yes, No, and No.

It is merely political posturing. Politicians can't afford to cut into the profits from the oil companies because the oil companies are partially responsible for financing their re-election campaigns. Politicians will not actually force the companies to do anything to ease consumers' pain. Some – such as Massachusetts legislators – are talking about ways to increase consumer's pain by raising gasoline taxes.

One oil executive said: "Consumers have the choice to drive less." I think this is a ridiculous, insulting statement. It makes as much sense as saying to oil executives that they have the choice of giving their annual salaries and other compensation to charity. It is theoretically possible, but it is not in their self-interest. Therefore it won't happen.

One day after Election Day and everything is upside down on Capitol Hill. The market's knee-jerk reaction today was a drop in defense stocks and pharmaceuticals due to the Democrats contrarian stance on issues key to those industries.

Another key Democratic issue that the markets seemed to overlook was the party's desire to reform the Federal minimum wage, which has not been raised from $5.15 per hour since September 1997. Notably, President Bush, who still holds veto rights on any bill passing through Congress, said today that minimum wage was an issue he could cooperate with Democratic leaders about. Additionally, six states (Arizona, Colorado, Missouri, Montana, Nevada and Ohio) approved minimum-wage hikes yesterday at a state level.

Most likely affected by a wage increase are fast food companies such as McDonald's (MCD), Wendy's (WEN) and Yum Brands (YUM); casual dining chains such as Applebee's (APPB) and Brinker International (EAT); and retail chains such as Wal-Mart (WMT), Target (TGT) and Federated (FD), to name a few.

Post provided by Eric Buscemi and TheFlyOnTheWall.com (subscription required).