In Verbs^x, Indirect speech^x, Auxiliaries^x

Yes, you are absolutely right! It is indeed indirect speech (I realized it later after reading more) and then we don't use auxiliary "do" in indirect questions. But I found this to be a tricky one. Yes, I have Swan's book but he doesn't mention that we can use auxiliary do...

If we try and use the same approach: - DIRECT: Why do I have two cars? - INDIRECT: You may wonder why I have two cars . (NOT ... why do I have two cars .)

<i wonder if this is an instance--like in indirect speech--where the rule is flexible...that is, it has become acceptable to say "he told me HE'S happy" as well as the backshifted "he told me he WAS happy"...in the examples above, can we backshift the verb to "WAS" because "could" is a past...

well not really you see this is not a case of subjunctive..as i said in my first postr (cite fowler here)...there is no sequence of moods in english... therefore, for example, we do not say "if i were to say i were happy" we say, instead, "if i were to say i was happy..." you...

i can't seem to find a hard-and-fast rule for a situation like this: "I wish I could say (that) I was happy" (if the speaker is attempting to express that he/she IS NOT HAPPY RIGHT NOW) would it be incorrect to express this as: "I wish I could say I'm happy".. one hears this sort of...

"Who am I?" is correct if you are asking a direct question. In indirect speech you might say something like "I wonder who I am." Miriam -- ~comes back to edit~ I forgot you asked "why". The verb "to be" doesn't use any auxiliaries in the present simple, so in order to make a...