From NBC's Domenico Montanaro
The Obamas have apparently chosen to send their daughters to the Washington, D.C.-private school Sidwell Friends.

From NBC's Domenico Montanaro
And this just over the transom from the Clinton Senate office...

"We're still in discussions, which are very much on track," writes Clinton Senior Adviser Philippe Reines. "Any reports beyond that are premature."

From Chuck Todd and Andrea Mitchell
NBC News has learned that the president-elect is preparing to roll out his economic team on Monday -- and will personally announce the team and answer questions -- part of an effort to reassure markets.

Video: NBC News has confirmed that President-elect Barack Obama will announce his economic team on Monday, tagging New York Federal Reserve President Tim Geithner for treasury secretary. NBC's Chuck Todd and Andrea Mitchell report.

Barring last minute changes, the nominee for Treasury Secretary will be NY Fed President Tim Geithner -- a career Treasury official under both Bob Rubin and Larry Summers -- who actually had worked at the Treasury in three administrations under five Secretaries -- going back to 1988.
 
Geithner has been a key player in the current economic crisis -- helping Treasury Secretary Hank Paulson and his team manage the wall street bailout.

Former Treasury Secretary Summers -- also considered for the post -- might still play a major future role in the Obama administration, according to sources. Summers came under fire from women's groups because of controversial comments he made about gender issues while President of Harvard, but sources say the decision to choose Geithner had more to do with Obama's interest in "change" and getting someone new on the team.

Also expected Monday -- an announcement that former U.N. Ambassador and Energy Secretary in the Clinton administration, New Mexico Governor Bill Richardson, will be Commerce Secretary.

Paul Volcker is expected to play a continuing advisory role -- not clear if he would have an appointed position.

Other economic appointments for the White house staff will likely include Dan Tarullo, a top Obama advisor, possibly as head of the National Economic Council.

Other economic posts -- perhaps at the Council of Economic advisors in the White House -- could be filled by Obama economic advisors Austan Goolsbee and Jason Furman.

*** UPDATE *** Msnbc.com's Al Olson reports that immediately after NBC News' report on Tim Geithner likely to be named Treasury Secretary, stocks rebounded sharply. The Dow Jones Industrial Average was trading in negative territory -- down about 38 points -- before the news. Moments after, the Dow zoomed more than 300 points.

Counting Conundrum: The ongoing Minnesota recount saga

From NBC's Jeff Hanley
Marc Elias, lead attorney for the Franken campaign, in a teleconference call today declared that the gap in votes between Al Franken (D) and Norm Coleman (R) is now only separated by a double-digit total vote margin. 

Citing evidence from Franken recount observers, Elias said that, as of last night, 51.1% of all ballots cast have been counted and that Franken had picked up votes.

The Franken campaign also believes the remaining ballots that have not yet been counted will lean in favor of Franken, a stark contrast from the Coleman campaign's assertion that the recount would be frontloaded with Franken ballots.
 
The Franken campaign also accused the Coleman campaign of frivolous ballot challenges. Giving an example of one such instance, Elias said the Coleman campaign believes that, "If you voted for John McCain, it is inconceivable that you didn't intend to vote for Norm Coleman." 

Ten ballots were produced by Elias that he said showed no question in the intent of voters -- that they had clearly intended to vote for McCain for president but Franken for senator.
 
When asked during the teleconference if mediation would occur between the Coleman and Franken campaigns related to ballot challenges prior to the Minnesota State Canvassing Boards hearing on the matter Dec. 16th, the Franken campaign responded simply, "There have not been any such discussions."

At last check, Coleman was up by about 200 votes officially. The recount is being updated here by the Minnesota Secretary of State.

From NBC's Chuck Todd and Abby Livingston
In the Georgia U.S. Senate runoff, the NRSC and a conservative interest group want to take a bite out of Democrat Jim Martin.

In a throwback to how Republicans regularly targeted suburban voters,   Freedom's Watch, a 501 (c)(4) group, and the NRSC have launched ads fingering Martin as weak on crime as a state legislator.

In the Freedom's Watch ad, called "Family Safety," a woman's voice over says, "Nothing's more important than your family's safety. That's why we have laws to protect them from harm."

Inter-spliced are images of children at an ice cream truck and being tucked into bed a la 3 a.m.

The ad then cuts to dramatic music and grainy images of Martin and accuses him of voting against stiffer penalties for drunk drivers and tougher sentences for domestic abuse.

The voiceover then declares, "Two chances to keep your family safer. Jim Martin was wrong on both. Tell him to support tough on crime policies."

The NRSC ad asks, "Will the real Jim Martin please stand up?" and then charges Martin with a litany of flimsy votes on crime. Among the accusations: that Martin voted against the prevention of child prostitution and the solicitation of drugs near schools.

Freedom's Watch funded pro-GOP ads in other Congressional races previously in the 2008 cycle and did a 2007 media blitz in support of the Bush administration's Iraq war policies. 

From NBC's Carrie Dann
They're on notice.

At her weekly press briefing this morning, House Speaker Nancy Pelosi reiterated a stern call to America's automakers to lay out a plan for their own survival in advance of a proposed lame duck session to take up the issue of federal aid to the industry.

"We have some problems because they keep changing the request," she said of automakers, who have ruffled Congressional feathers by appearing unenthusiastic about receiving funds earmarked for innovation rather than immediate assistance to promote liquidity. "We want it in writing. What is it that they want [the federal funds] for? We stand open to be helpful."

Video: House Speaker Nancy Pelosi says that the auto industry is an important part of the U.S. economy, but the Big Three need a plan to help return to viability and accountability, rather than just taking government money and continuing on.

The Speaker of the House said that she and Senate Majority Leader Harry Reid have drafted a letter to the CEOs of the big three automakers designed to "giv[e] them some idea of what we do mean by viability and accountability to the American taxpayer." 

It remains to be seen how harshly worded the letter will be. Asked if the text specifically mentions the bad publicity earned by CEOs who traveled to Washington in corporate jets to register their complaints about impending financial doom, Pelosi merely smiled, saying that the critique in their directive to automakers is there "by implication."

Pelosi said that much hinges on how the automakers' proposal goes over among Congressional leaders, saying that she hopes they will lay out a map to success that "justifies calling another session of Congress" before next January.  (Still, she added, "we can't do nothing," and underscored that  -- even without additional Congressional action this year -- the existing administration has authority to make an infusion of cash to the industry at a moment's notice, if need be.)

"Their viability is not just about belt-tightening," she said of American manufacturers under fire for their sluggish efforts to advance auto technology. "It's about a decision to compete and innovate."

*** UPDATE *** Also, if you're following the Waxman fallout, Pelosi was asked today who would replace him on the oversight cmte as he ascends to Energy and Commerce. Pelosi said that she didn't forsee an impending fight.

"I don't know that anything would be outside the regular order," she said. But she added this wait-and-see caveat: "We're just getting used to the idea of what happened yesterday" with Waxman's victory.
 
Next in line for the chairmanship would be Rep. Edolphus Towns (D-N.Y.)

*** UPDATE  TWO  *** Here's the full text of the letter, released Friday afternoon.

November 21, 2008
Dear Messrs Wagoner, Mulally, and Nardelli:

We recognize the importance of the domestic automobile industry and are committed to working with you to ensure its viability in the years to come.  One in 10 American jobs is related to auto manufacturing; our national security depends on the industry's technologies and manufacturing capacity; and our competitiveness in a global economy depends on its pursuit of excellence.

As you know, Congress has provided President Bush, the Chairman of the Federal Reserve, and the Treasury Department the authority they need under the Emergency Economic Stabilization Act (EESA) as well as other authorities to provide short-term financial assistance to the auto companies. 

Unfortunately, the Bush Administration and the Federal Reserve have thus far declined to use their powers to improve our nation's financial stability by assisting the auto industry.  Notwithstanding existing authorities, this Congress is prepared to consider additional legislation that would give the assistance you seek, provided that you submit a credible restructuring plan that results in a viable industry, with quality jobs, and economic opportunity for the 21st century while protecting taxpayer investments. 

In order for Congress to act in a timely manner, this plan must be presented to Congress by December 2nd, specifically to Senate Banking Committee Chairman Christopher Dodd and Financial Services Committee Chairman Barney Frank.

It is critical that you meet this deadline since we have announced we are prepared to come back into session the week of December 8 to consider legislation to assist your industry. We intend to give pertinent agencies within the executive branch, the Government Accountability Office, the Board of Governors of the Federal Reserve, as well as outside experts, the opportunity to comment on your work. 

The plan must:

Provide a forthright, documented assessment of the auto companies' current operating cash position, short-term liquidity needs to continue operations as a going-concern, and how they will meet the financing needs associated with the plan to ensure the companies' long-term viability as they retool for the future;

Provide varying estimates of the terms of the loan requested with varying assumptions including that of automobile sales at current rates, at slightly improved rates, and at worse rates;

Provide for specific measures designed to ensure transparency and accountability, including regular reporting to, and information-sharing with, any federal government oversight mechanisms established to safeguard taxpayer investments;

Protect taxpayers by granting the most senior status for any government loans provided, ensuring that taxpayers get paid back first;

Assure that taxpayers benefit as corporate conditions improve and shareholder value increases through the provision of warrants or other mechanisms;

Bar the payment of dividends and excessive executive compensation, including bonuses and golden parachutes by companies receiving taxpayer assistance;

Include proposals to address the payment of health care and pension obligations;

Demonstrate the auto companies' ability to achieve the fuel efficiency requirements set forth in the Energy Independence and Security Act of 2007, and become a long-term global leader in the production of energy-efficient advanced technology vehicles; and

Require that government loans be immediately callable if long-term plan benchmarks are not met.

The auto companies' shareholders, business partners, and prospective benefactors—the American people—deserve to see a plan that is accountable to taxpayers and that is viable for the long-term.   In return for their additional burden, taxpayers also deserve to see top automobile executives making significant sacrifices and major changes to their way of doing business.

We look forward to working with you to ensure a viable American automobile manufacturing sector for decades to come.   If we are successful, we can ensure a brighter future for the automobile industry, our nation, and our planet.

Thank you for your prompt attention to this matter.

Sincerely,

Nancy Pelosi
Speaker of the House    

Harry Reid
Senate Majority Leader

 

 

From NBC's Chuck Todd and Domenico Montanaro
Former Mississippi Gov. Ray Mabus is being considered for multiple Obama cabinet positions, according to an informed Democratic source. Among the positions -- Secretary of Education, Energy and Ambassador to the United Nations.  

Mabus was one of the earliest supporters of Obama, a key one at the time as a former Southern white statewide officeholder. He also did a lot of stumping for Obama in both the primary and the general, and there's a sense among some Mabus supporters that he's more than earned serious consideration for a fairly top appointment.

From NBC's Pete Williams
Attorney General Michael Mukasey has been released from the hospital, about 12 hours after he was admitted for observation last night following his collapse during a speech.

A Justice Department spokeswoman says Mukasey apparently fainted last night.  She said a series of tests this morning found no sign of a stroke or anything heart-related.

She said all the tests were negative for stroke. He had a clear MRI and normal CT scan, and doctors have ruled out a mini-stroke or TIA. He had a normal stress test as well.  His doctors say he's in good shape and "beat the machine." They also said he had a stress echo cardiogram which was normal.

*** UPDATE *** NBC's Mike Kosnar reports the following is an internal email apparently just sent by Mukasey to DOJ staff:

To all DOJ employees:

Dear Colleagues,
As you may have heard, I collapsed briefly last night at the conclusion of a speech. All tests at the hospital have come back with good results, and I feel fine.

Accordingly, I plan to report to the Department this afternoon and to continue doing the work I swore to do last November and which it has been an honor to do with you ever since.

Thank you for your good wishes and your good work. It has been and remains an honor to serve with you.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Carrie Dann
*** So is It done? Call us skeptical, but why is it hard to believe that the news that Obama and Clinton have worked everything out and the appointment will take place just after Thanksgiving is something that will hold? There's going to be more pauses and skeptical stories about this happening between now and whenever the State announcement happens. It's the only way, right? Just consider this passage in today's New York Times: "One friend said Mrs. Clinton decided late Wednesday to say no, reasoning that she would have more freedom in the Senate. By midday Thursday, the friend said, she was 'back in the indecisive column again.' By the end of the day, another associate said she could accept by Friday." 

Video: NBC Deputy Political Director Mark Murray offer his first read on why Hillary Clinton appears ready to leave the Senate for the State Department.

*** Leak soup: Speaking of the Clinton-Obama drama, everyone is now noting all the transition leaks and how frustrating they must be for the usually disciplined Obama folks. Today's Washington Post has a good piece on why they're happening -- and where they're coming from. "'There is nothing they can do about it -- vetting and FBI background checks require a lot of calls, and that leads to leaks,' explained Steve Elmendorf, a longtime aide to former House minority leader Richard A. Gephardt (D-Mo.) and now a lobbyist in Washington. And unlike in a campaign, there is now simply more information to disseminate and more outlets chasing the ever-elusive scoop. 'It's the era of the Internet; what do you expect?' joked a former Clinton White House senior adviser who is not involved in the transition process."

*** Dingell gets buried: Only in Congress' antiquated seniority system is change defined by a member of Congress elected in '74 replacing a member of Congress elected in '55. But that's exactly what happened yesterday when Henry Waxman ousted fellow Democrat John Dingell from chairing the House Energy and Commerce Committee. Of course, the big issue for Dingell may have been the anger at the auto industry, and if that vote had taken place at another point in the year, Dingell might have had a better chance of surviving. But taking place just one day after the auto CEOs disastrous Hill testimony, Dingell had a steeper hill to climb to survive. By the way, the six-year long campaign by Pelosi to unseat Dingell (it began in '02 when she supported Dingell's primary opponent) has finally come to fruition. Let there be no doubt about the power of the speaker.

*** All vacancies: With the likely nominations of Napolitano to Homeland Security and Clinton to State, that means we're going to have some fun replacement appointments to watch in Arizona (GOV) and New York (SEN) -- in addition to the replacements that already have to happen in Illinois (SEN) and Delaware (SEN) for Obama's and Biden's seats. And if Kathleen Sebelius seems headed to either Labor or Energy, as we reported yesterday, then that will mean another appointment in Kansas (GOV). In the next few weeks, in fact, we might have more trouble keeping track of all the new replacements than the new members of the Obama cabinet. Oh, and be sure to keep this in mind: Because Arizona doesn't have a lieutenant governor, that means that the GOP Secretary of State Jan Brewer would replace Napolitano if she takes the job at Homeland.

Video: Bloomberg News' Margaret Carlson talks about the recent additions to Barack Obama's Cabinet as well as speculation that Arizona Governor Janet Napolitano is being eyed as Secretary of Homeland Security.

*** Cars and 2010: NBC's Ken Strickland yesterday spotted these three senators at a Senate press conference announcing a bipartisan agreement to help the automotive industry: Kit Bond, Arlen Specter, and George Voinovich. What do they have in common besides hailing from car-producing states? All three are up for re-election in 2010.

*** Dems gaining ground in the South: Yesterday, we once again wrote about how the Republican Party appears to be concentrated in the South, noting that six of the party's 13 incoming House and Senate leaders will now hail from that part of the country. But a House Democratic aide points out to us that they've gained ground there on the Republicans. Per numbers from the National Committee for an Effective Congress, Republicans enjoyed a 100-to-63-seat advantage over Democrats in the South heading into the 2006 midterms. Now, after the election two weeks ago, the GOP's lead there has been reduced to 86-76 (with the LA-4 race still undecided) -- and the South is the only part of the country where the party has an advantage. In the East, Democrats lead Republicans, 68-15; in the Midwest, Dems are up 50-40, and in the West, they're ahead 63-34.

*** The remaining races: In Georgia's Senate run-off, Obama has cut a 60-second radio ad for Jim Martin (D), while Al Gore campaigns for Martin on Sunday… In Minnesota, the Star Tribune reports that on Day Two of the recount, Norm Coleman's (R) lead over Al Franken (D) dropped to just 136 votes with about 46% of the vote counted… And in Ohio, a judge ruled that the provisional ballots must be counted in the extremely close House race between Mary Jo Kilroy (D) and Steve Stivers (R), which Stivers leads by 149 votes. Counting the provisional ballots would seem to benefit Kilroy.

Countdown to Georgia Senate run-off: 11 days
Countdown to Electoral Vote Count: 48 days
Countdown to Inauguration Day 2009: 60 days

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The Washington Post front-pages, "Barack Obama was famously able to impose discipline and control over his presidential campaign, but it didn't take long for him to discover that running a transition is something quite different. Top aides to the president-elect had hoped to take a methodical approach to selecting and unveiling their new team, starting with the announcements of top national security and economic players shortly after Thanksgiving. But leaks and rumors have disrupted that plan, suggesting that the 'no-drama Obama' mantra famously repeated by his staff may not be as operational in Washington as it was at campaign headquarters in Chicago."

Video: "Hardball" host Chris Matthews talks with TODAY's Meredith Vieira about President-elect Barack Obama's Cabinet picks.

More: "Obama has not officially announced any Cabinet appointments, but transition officials have reluctantly confirmed that former senator Thomas A. Daschle (S.D.) will be nominated as secretary of health and human services, Arizona Gov. Janet Napolitano is the top choice for the Department of Homeland Security, and Eric H. Holder Jr. is likely to be the attorney general pick. Meanwhile, Sen. Hillary Rodham Clinton (N.Y.) is on track to be nominated for the job of secretary of state after Thanksgiving, transition aides said. And late last night, Obama aides were confronted with unconfirmed talk that retired Gen. James L. Jones could be tapped for national security adviser."

The AP with the big news: "President-elect Barack Obama is on track to nominate Hillary Rodham Clinton as secretary of state after Thanksgiving, an aide to his transition said Thursday. One week after the former primary rivals met secretly to discuss the idea of Clinton becoming the nation's top diplomat, the two sides were moving quickly toward making it a reality, barring any unforeseen problems.The transition aide told The Associated Press that the two camps have worked out financial disclosure issues involving Clinton's husband, former President Bill Clinton, and the complicated international funding of his foundation that operates in 27 countries. The aide said Obama and Hillary Clinton have had substantive conversations about the secretary of state job. Clinton has been mulling the post for several days, but the transition aide's comments suggested that Obama's team does not feel she is inclined to turn it down." 

Should the Clinton-for-State deal fall apart, there is a Senate leadership package awaiting Clinton, including a still unnamed unelected leadership post and a role in the health care debate along side Ted Kennedy. The New York Times: "The discussions about an enhanced position for Mrs. Clinton are factoring into her deliberations over joining the cabinet, the officials said. Mrs. Clinton, the junior senator from New York, is wrestling with whether to abandon her independence to become the nation's top diplomat or remain in a chamber where lack of seniority limits her influence."

Tom Edsall: "It would be interesting to know how the average New York voter would respond when told that during the past three years their Senator and her spouse personally received $2.1 million from such major banks as Goldman Sachs ($800,000), Lehman Bros. ($300, 000), Citigroup ($425,000) and Deutsche Bank ($300,000). The money -- honoraria payments to former President Clinton -- demonstrate that the conflicts between Bill Clinton's multi-million dollar financial entanglements and his wife's possible selection as Secretary of State are just as relevant in the case of the elected office Hillary Clinton currently holds, raising to front and center the same glaring conflicts of interest that have gone largely overlooked during Hillary's eight years in the Senate."

Can a modern-day Team of Rivals work? "...[H]istorians argue that Lincoln's model ... is a high-risk strategy for Obama, one that could alienate his allies and sow dysfunction inside the White House. Few modern presidents have made political adversaries Cabinet appointees, in this view, and even fewer could make the arrangement work."

The potential pick of Janet Napolitano as Homeland Security secretary is getting praise from the left and right. Per the Washington Post, "Immigrant advocates, business groups and civil libertarians said that the choice of a two-term governor from a Republican-friendly border state could lead to a reversal of policies that they contend unduly punish illegal immigrants, commerce and Americans' privacy. Agency observers on the right and the left say that her selection appears to reflect a calculation that she could do so without appearing weak on terrorism."

"In fact, immigration opponents and counterterrorism analysts praised Napolitano. They said, however, that they think the former federal prosecutor would continue much of the Bush administration's enforcement-first policies, including border security enhancements and promoting national standards for identification cards. In both promising to restore 'balance' to what Democrats say has been a one-sided security debate and seeming to straddle wide political divisions, Napolitano is much like Obama, both Republican and Democratic observers said."

The Wall Street Journal has the scoop on a potential leading candidate for head the FAA. "Airline consultant Duane Woerth, who was president of the Air Line Pilots Association from 1999 to 2006, has met with House Transportation and Infrastructure Committee Chairman James Oberstar and has his tentative support, according to people familiar with their discussions. Sen. Jay Rockefeller, who heads an aviation subcommittee, is slated to meet with Mr. Woerth in the next few days."

Could Arnold Schwarzenegger be one of the Republicans Obama decides to appoint to his administration? Looks like Arnold's open to it. "Schwarzenegger spoke to President-elect Barack Obama this week and would be willing to work for the Democratic administration once his term expires if asked, the Republican governor said in an interview broadcast this morning," the Los Angeles Times writes. "'I will help in every possible way the administration to be successful,' he told Fox News. 'So whatever they need, I'm there.'"

Al Kamen gets into the issue of Hispanics and the lack of major candidates being floated for Cabinet posts. "At least four Latino candidates are said to be under consideration to head the Department of Housing and Urban Development: Miami Mayor Manny Diaz; Adolfo Carrion Jr., a longtime New York pol, and Bronx borough president; Saul Ramirez Jr., a former deputy HUD secretary; and Nelson A. Diaz, who has been a judge and a HUD general counsel. As for Bill Richardson, he appears to have lost out to Clinton for State, one suggestion for him: Amb. to China. 
 
The revamped newsletter from Public Strategies, the political consulting firm, breaks some news. First, "Democrats familiar with transition plans confirm that former Iowa Gov. Tom Vilsack is at the top of Obama's list to head the Agriculture Department." And second, "Democrats close to the transition process tell us that there's another name on the short list for Education Secretary: Former Mississippi Gov. Ray Mabus."
 
Two other possible choices for Agriculture secretary are Democratic House members from conservative-leaning districts; if he taps either Collin Peterson (D-Minn.) or Stephanie Herseth Sandlin (D-S.D.), Dems might lose the seat to a GOP member.

OUR OBAMA CABINET SPECULATION LIST:
Chief of staff: Emanuel NAMED
Deputy chiefs of staff: Jim Messina NAMED, Mona Sutphen NAMED
Senior advisers: Valerie Jarrett NAMED, Peter Rouse NAMED, David Axelrod NAMED
Assistant to the president for legislative affairs: Phil Schiliro NAMED
White House counsel: Greg Craig NAMED
Press secretary: Robert Gibbs
Biden chief of staff: Ron Klain NAMED
Staff secretary: Lisa Brown NAMED
Cabinet secretary: Chris Lu NAMED

POTENTIAL CABINET MEMBERS:
Agriculture: Tom Vilsack, Tom Buis (Natl Farmers Union), Charlie Stenholm, Jim Leach, Stephanie Herseth Sandlin, Marshall Matz, John Boyd Jr. (pres, Natl Black Farmers Assn)
Commerce: Penny Pritzker, Kathleen Sebelius, John Thompson (Symantec), Ron Kirk (former Dallas mayor), Scott Harris (Harris, Wiltshire & Grannis fndr)
Defense: Robert Gates, Richard Danzig, Chuck Hagel, Sam Nunn, Jack Reed, Colin Powell, John Hamre, Tim Roemer, Thomas Pickering, Anthony Zinni, Max Cleland, Michele Flounoy, Jim Jones
Education: Joel Klein (NYC), Linda Darling-Hammond, Kathleen Sebelius, Colin Powell, Jim Hunt, Arne Duncan, Inez Tenenbaum, Michael Bennett, George Miller, Gaston Caperton (fmr WV gov), Bambi Cardenas (pres, U TX-Pan Am, Susan Castillo (OR supt), Michael Cohen (pres, Achieve), Christopher Edley (dean, UC-Berkeley), Michael Johnston (dir, Mapleton Expeditionary Schl of the Arts), VA Gov. Tim Kaine, Michelle Rhee (DC), Sharon Robinson (pres, Assn of Colls for Tchr Ed), Andrew Rotherman/Jonahtan Schnur (fmr Clinton advisers), Diane Shust (dir, NEA govt rels), Paul Vallas (supt, New Orleans Recovery Schl Dist), Bob Wise (fmr WV gov)
Energy: Dow Chemical CEO Andrew Liveris, Kathleen Sebelius, Philip Sharp, Ed Rendell, Arnold Schwarzenegger (has said no), Al Gore, Jeff Bingaman, Jennifer Granholm, Steve Westly, Frederico Pena, Dan Reicher, Jason Grumet
HHS: Tom Daschle CONFIRMED BY NBC NEWS, Howard Dean (reportedly ruled out), Eric Whitaker, John Kitzhaber, Kathleen Sebelius
Homeland Security: Janet Napolitano LIKELY, PER NBC NEWS, Ray Kelly (NY), William Bratton (L.A.), Tim Roemer, James Lee Witt, Tom Kean Sr, Jane Harman, Artur Davis, Richard Clarke, Manny Diaz, Maine Sen. Olympia Snowe, Susan Collins, Lee Hamilton (though he said he's too old), Jamie Gorelick
HUD: Jim Clyburn, Shirley Franklin (Atlanta mayor), Manny Diaz (Miami mayor), Saul Ramirez
Interior: Bill Richardson, Jay Inslee, John Kitzhaber, Tony Knowles, Ken Salazar, Jamie Rappoport Clark, Brian Schweitzer
Justice (AG): Eric Holder CONFIRMED BY NBC NEWS, Janet Napolitano, Charles Ogletree, Deval Patrick, James Comey, Patrick Fitzgerald, Artur Davis, Tim Kaine, Jamie Gorelick (but was vice chair of Fannie), Ken Feinberg, Cass Sunstein, Kathleen Sullivan (Stanford Law prof, possible Solicitor General. Also possible SGs: Beth Brinkmann – DC Atty; Preeta Bansal – Skadden, Arps; Elena Kagan –Harvard law dean; Pamela Karlan—Stanford; Teresa Wynn Roseborough -- MetLife litigation counsel)
Labor: Andy Stern (SEIU) (said not interested), Richard Gephardt, George Miller, David Bonior (said he's not interested, suggested: American Rights at Work Executive Director Mary Beth Maxwell), Xavier Becerra, Linda Chavez-Thompson, Antonio Villaraigosa
State: John Kerry, Bill Richardson, Richard Lugar, Chuck Hagel, Richard Holbrooke, Chris Dodd, Hillary Clinton, Thomas Pickering, Al Gore, Colin Kahl (CNAS fellow), Tom Daschle
Transportation: Ed Rendell, Jane Garvey, Mortimer Downey, Earl Blumenauer, Steve Heminger, James Oberstar, Peter DeFazio, Federico Pena, Jeanette Sadik-Khan, Tim Kaine,  John Hickenlooper (Denver mayor), Ron Sims (King County (WA) Executive), Doug Foy (Fmr pres, Convservation Law Fndtn), Parris Glendening (Fmr Gov MD)
Treasury (priority): Larry Summers, Tim Geithner, Paul Volcker, Robert Rubin, Jon Corzine, Warren Buffett, Michael Bloomberg, Laura Tyson, Jamie Dimon (JP MorganChase), Jacob "Jack" Lew, Sheila Bair, Indira Nooyi, John Thain (Merrill Lynch)
Veterans Affairs: Max Cleland, Tammy Duckworth, Chet Edwards, Arnold Fisher (fmr Fisher House Fndtn chair), James Peake, William Bratton
 
OTHER POSITIONS:
CIA: Tony Lake, John Brennan, Chuck Hagel, Michael Hayden, Jami Miscik (fmr CIA dep dir for Intel)
DNI: Tony Lake, John Brennan, Tim Roemer, Rand Beers, Jane Harman, John Abizaid, Evan Bayh
FEMA: James Lee Witt
EPA: Howard Learner (Pres, Exec. Dir, Environmental Law and Policy Center), Ian Bowles (MA), RFK Jr, Kathleen Sebelius, Kathleen McGinty (former secretary of Pennsylvania's Department of Env Protection), Mary Nichols (chair of California's Air Resources Board), Robert Sussman, Dan Esty, Lisa Jackson (NJ environ commission)
FBI: Robert Mueller (term expires 2011)
Fed Chair: Ben Bernanke (at least for first year)
FDA: Steven Nissen (Cleveland Clinic), Joshua Sharfstein (Baltimore health commissioner), Janet Woodcock (Big Pharma's choice), Susan Wood (GWU occupational and environmental health professor), Diana Zuckerman (president, National Research Center for Women & Families) Joint Chiefs: Michael Mullen (term ends in late 2009, can expect to be appointed for second term, per tradition)
Natl Economic Council: Dan Tarullo, Jacob "Jack" Lew, Jason Furman, Austan Goolsbee, Laura Tyson
Natl Sec Adviser: Jim Steinberg, Rand Beers, Susan Rice, Greg Craig, Jim Jones
NSC: Dennis Ross, Greg Craig, Susan Rice, Tony Lake
OMB: Peter Orszag CONFIRMED BY NBC NEWS, John Spratt Jr, Gene Sperling, Jason Furman
Peace Corps: Chris Shays
UN Ambassador: Caroline Kennedy, Susan Rice
USTR: Cal Dooley (American Chemistry Council president), Daniel K. Tarullo (Georgetown University law professor), Lael Brainard (Brookings Institution vice president), Thomas F. "Mack" McLarty (fmr Clinton White House chief of staff)
Urban Czar: Manny Diaz
Climate: Terry Tamminen (climate change, adviser to Schwarzenegger), Al Gore, Carol Browner (Audobon Society), Jonathan Lash (World Resources Inst), Kathleen McGinty, Janet Napolitano, Mary Nichols, Kathleen Sebelius
Auto Czar: Jennifer Granholm
Secretary of the Army: Mortimer Downey
 
Other mentions for various White House staff posts: Patti Solis Doyle, David Wilhelm, John Rogers, Bill Daley, Cass Sunstein, Bob Bauer, Michael Froman, Federico Pena, Lawrence J. Korb, Carol Browner (Clinton's EPA head), Thomas Perrelli, David Ogden

"The fear is back," the Boston Globe writes. "The fear in capital markets is different from the near panic experienced in September and October, before governments around the world began organizing plans to deal with a global credit freeze. The cause is different this time, and many of the symptoms vary. But this fear may be more serious, and it's driving markets even further down a very dark hole. That was painfully clear to anyone watching stock markets over the past two days, as the Dow Jones industrial average sunk by 872 wrenching points, or 10.3 percent. The Standard & Poor's 500 index, struggling through its worst year in an 80-year history, sunk to its lowest level in 11 years." 
 
"Jarred by new jobless alarms, Congress raced to approve legislation Thursday to keep unemployment checks flowing through the December holidays and into the new year for a million or more laid-off Americans whose benefits are running out." 
 
"Unable to reach a deal on how to help the ailing auto industry, congressional leaders announced [yesterday] afternoon they'll try again in a second lame-duck session the week of Dec. 8 -- if auto executives come up with a plan. 'Unless they can show us a plan, we can't show them the money,' said House Speaker Nancy Pelosi."

More from Roll Call on the second lame duck session: "Punting the issue until December gives Pelosi and other Democratic leaders time to craft legislation that could include other carrots to assuage environmentalists and the public, as well as more time for the pressure to build on reluctant lawmakers. And requiring the auto companies to come back to the table puts pressure on the companies to propose concessions and accountability measures that would give lawmakers more political cover."

Henry Waxman's defeat of John Dingell for the post of Energy and Commerce Committee chairman means Waxman will have an enhanced role on the Hill and may take the lead on climate change legislation. Environmental groups are ecstatic.

The Washington Post's Kane notes that Dingell's loss is a defeat for U.S. automakers, while The Hill writes that the Californian's win shows a congressional shift to the Left.

Ways and Means Chairman Charlie Rangel called Dingell's defeat "the burial of the seniority system."

Stevens bid farewell to the Senate in an at times emotional speech on the floor.

"Fred Thompson is going back to the small screen after his foray into Republican presidential politics over the last year. He campaigned heavily for eventual nominee John McCain, and had recently tried to gain support to be in charge of the Republican National Committee. But his former finance chairman, B.C. 'Scooter' Clippard, said Thompson told him Wednesday that he was returning to acting and dropping his RNC bid. 'He seriously considered it, but he called and said that it was not in the cards,' Clippard said."

In his latest National Journal column, political analyst Charlie Cook notes that the Republican Party is now supported by just two pillars: social conservatism and tax cuts -- at any cost. "One might think that with all of the extra time on their hands Republicans would spend some of it thinking about what their inadvertent or misguided repositioning has reaped. Certainly, there are brilliant Republican strategists who are painfully aware of what has happened—and predicted it. But from most Republican leaders we are hearing shopworn shibboleths like, "We lost because we weren't conservative enough." If that mind-set prevails, the only way for Republicans to regain real power will be to wait until Democrats completely implode and to hope that Republicans can win at that point simply because they aren't Democrats."

GEORGIA: Obama has cut a new 60-second radio ad for Jim Martin (D), the Atlanta Journal-Constitution writes. "In the ad, Obama says Martin 'supports my plan to cut middle-class taxes' and calls the former state lawmaker 'a man of his word.' 'I know he'll do everything he can to help me change Washington and get America moving again,' Obama says."

National Journal's Kirk Victor writes about the pros and cons for Obama to do more than cut a radio ad and actually campaign for Martin. "What Obama must decide, if he hasn't already, is whether trying to help an underdog in a state that he didn't carry himself is worth the political capital it would cost, especially if that candidate ends up losing." More: "The refusal, so far, by the Obama transition team to commit to his appearance says a great deal about the caution -- some would say prudence -- of the president-elect and his advisers. They have spent plenty of time learning from past transitions. They know that 16 years ago another Senate race in Georgia also resulted in a runoff. President-elect Clinton decided to spend political capital to boost a friend, first-term Sen. Wyche Fowler," who ended up losing.

Al Gore campaigns for Martin on Sunday.

MINNESOTA: The Star Tribune reports on Day Two of the recount. "With about 46 percent of the 2.9 million ballots counted by Thursday evening, the gap between Republican incumbent Norm Coleman and DFL challenger Al Franken continued to close. Coleman was leading by only 136 votes, a drop from his unofficial lead of 215 that was confirmed Tuesday by the state Canvassing Board. The figures represent a compilation of recount data reported to the secretary of state and gathered by the Star Tribune." 

The AP says the recount is getting really messy. "A recount watchdog for Norm Coleman flagged a ballot because the voter put a check next to Al Franken's name instead of blacking in the oval. A Franken monitor challenged an apparent vote for Coleman because Franken's name was also marked. And representatives of both men invoked challenges because of marks elsewhere on the ballot that could make them identifiable."

NEW YORK: With Hillary Clinton's appointment back on the "likely going to happen" track, the speculation on who replaces Clinton in the senate will heat up... big time. Here's another clip claiming Rep. Nydia Velasquez is a strong contender.

For what it's worth, everything we've learned from our New York sources indicates it would be a surprise to many if Velasquez got the call.

The New York Post's Fred Dicker reports that Chuck Schumer has strong opinions about whom Gov. David Paterson should appoint. Apparently, one person Schumer doesn't want to see appointed is AG Andrew Cuomo.

But isn't it in Paterson's best interest to appoint Cuomo if he thinks the AG might be a future GOV challenger to him?

OHIO: Per the AP, a federal judge ruled yesterday that provisional ballots must be counted in the extremely close House race between Mary Jo Kilroy (D) and Steve Stivers (R). "The decision by U.S. District Judge Algenon Marbley could affect the outcome of the race… Stivers leads Kilroy by 149 votes in the race to succeed retiring Republican Deborah Pryce. An estimated 1,000 ballots are in dispute in that race because of defects such as voters failing to both print and sign their names. Marbley's ruling applies to a total of about 27,000 provisional ballots in Franklin County, which also are holding up the results of two state House races."

The Columbus Dispatch adds, "Within five minutes of the ruling, John W. Zeiger, an attorney for Stivers' campaign, said he had filed an appeal."

From NBC's Andrea Mitchell
Democratic sources say that former Bush 41 National Security Adviser Brent Scowcroft is one of the people whom Barack Obama has been consulting about how to craft his national security team. Knowledgeable sources say Obama reached out to Scowcroft two days ago to discuss defense and national security issues.

Scowcroft, who first served as President Ford's national security adviser, was an early and vocal critic of the Iraq war -- starting in August 2002. That criticism cost the retired Air Force General his position as head of President Bush's Foreign Intelligence Advisory Board. 

Scowcroft is very close to Defense Secretary Bob Gates, who is considered a possible holdover for the cabinet.

Another key adviser to the president-elect on defense matters -- Sen. Jack Reed -- is a leading member of the Armed Services Committee who traveled with Obama to Iraq and Afghanistan. Reed is also very close to Gates.

Sources say that with or without Gates in the mix, a possible national security adviser in the new Administration is Gen Jim Jones, retired Marine Commandant and former NATO Supreme Commander.

Another is former Clinton Secretary of the Navy Richard Danzig, a key Obama adviser during the campaign. Also in the mix: Former Assistant Secretary of State and close Obama adviser Susan Rice, as well as former Clinton National Secretary Council and State Department official Jim Steinberg, most recently head of the LBJ Foreign Policy school at the University of Texas.

What about Hillary? Some Obama advisers have "cooled" to the idea of her being secretary of state, because of all the Bill Clinton complications. Other top Democrats say the prospect is still alive. 

If Clinton thought she had a chance to have a larger role on health care if she remains in the Senate, she got the message yesterday that the prospect is unlikely. When Sen. Ted Kennedy held his first meeting of key subcommittee chairs to discuss health care legislation, Clinton was not invited.

Although Kennedy offered Clinton the leadership of a health-care task force this week, aides say it does not have a budget or a staff.

From NBC's Alice Rhee
An Obama transition official tells NBC News that they've received more than 200,000 work applications through the official transition web site, www.change.gov. since it went operational shortly after the election.

The same official points out: "There was an incredible amout of enthusiasm in the campaign and people all across the country are carrying that same energy into the transition."

And they don't seem terribly surprised by the influx of applications coming their way -- pointing out, after all, that more than three million people donated money to the campaign.

Still, that's quite a stack of resumes.

From NBC's Erika Angulo
President-elect Obama is two months away from being sworn in, but some of Washington's most experienced political minds are already envisioning what 2012 will look like.  Participants at a panel organized by the National Journal concluded that Republicans should be concerned about the next presidential election.

One reason for potential GOP concern, said panelists, is "Millennials," or young voters. Ruy Teixeira, author of Red, Blue and Purple America: The Future of Election Demographics, says voters born after 1970 have become more and more Democratic.  He estimated there will be 64 million  "Millennials" in 2012. 

"That would be worrisome if I were a Republican," Teixeira said.

An estimated 23 million voters under the age of 30 cast their vote on Election Day.  That's an increase of 3.4 million over 2004, according to the Center for Information and Research on Civic Learning and Engagement (CIRCLE), which analyzes youth vote statistics.

Teixeira also sees a change in what has been a key source of support for Republican candidates, Christian voters.  "Voters are becoming more secular," he noted.

The University of Akron's John Green estimates that 45% of voters will not call themselves Protestant or Catholic by 2024.

Republican pollster Bill McInturff said that the GOP should be concerned about how strongly Hispanic voters supported Obama. Exit polls showed 66% of Latino voters favored the Democratic nominee.  "If the Republican party allows Latinos to stay where they are," he said, "it will become a minority white party." 

McInturff's Public Opinion Strategies was the lead polling company for McCain's presidential bid. 

Democratic pollster Stan Greenberg also weighed in, arguing that the key to Obama's success was a combination of an engaged electorate and a strong Democratic coalition.   That coalition, Greenberg said, has the potential to endure through 2012.

[Editor's note: An earlier version of this story cited the Pew Forum on Religion and Public Life as the source of a projection of religious affiliation in 2024.  John Green is a senior fellow at the Pew Forum but made the projection in an article written for Teixeira's book.]

From NBC's Carrie Dann and Ken Strickland
Incoming White House Chief of Staff Rahm Emanuel, on Capitol Hill today to meet with House and Senate Republicans, says that the lines of communication will run across the aisle in an Obama administration.
 
Senate Republicans say that promise includes the famously outgoing Democrat's digits.
 
"He gave us all his personal cell phone," said newly-selected Republican Policy Committee Chairman John Ensign, who met with Emanuel today. "He said he promised to get back us on issues within 24 hours."

VIDEO: Rahm Emanuel speaks to reporters during a day of meetings with Republicans on Capitol Hill.
 
The former Illinois lawmaker's visit to the Hill today to meet with Ensign's Senate leadership colleagues, as well as with newly-selected House bigs Eric Cantor and Mike Pence, was intended as a gesture of bipartisan goodwill on the part of the new administration.   Emanuel told reporters this afternoon that he was directed by Obama to request the series of meetings with GOP leaders to indicate that the new administration will "welcome their ideas," emphasizing that "the challenges facing the country require that people of both parties work together to solve those problems."  (Today's meetings, he added, are in addition to "twenty plus" phone calls to members of the Republican conference in the time since he was named as Obama's top White House aide.) 
 
Incoming NRSC Chair John Cornyn praised the fact that Emanuel took the time to reach out to Republican leaders. "He thought it was important enough to come over and spend an hour with us," Cornyn said. "[That] speaks volumes, more than just what he said." The Texas senator added that he's anxious to see "whether the actions match the message."
 
Emanuel briefly addressed reporters during the course of the meetings today, underscoring the new administration's willingness to reach across the aisle but not mentioning the possibility of any further Congressional action on a compromise auto industry bailout before January. Speaking broadly about President-elect Obama's intention to collaborate with GOP leaders, Emanuel did not make reference to another possible lame duck session of Congress to address federal aid to the industry, saying that his visit to the Hill comes during "obviously the last week of the 110th Congress."

Ensign, who said that he was "very pleased" with today's conversation with Emanuel, was optimistic about the incoming administration's intentions. "His words were basically 'this is not a head-fake on bipartisanship. This is real.' They really want to work in a bipartisan fashion and it's not about just saying it, they actually plan on doing it," Ensign said. "Those are exactly the right words to use."

From NBC's Ken Strickland and Mike Viqueira
According to sources, Congress will return sometime next month to revisit an auto bailout plan, making it "highly unlikely" there will be a vote on a bailout plan this week. That would mean another lame duck session.

Members were unhappy with what they heard this week from auto industry execs during hearings and want them to come up with a concrete plan soon.

From NBC's Andrea Mitchell
Sources inside the Democratic House Caucus say the vote against outgoing Energy and Commerce Committee Chairman Rep. John Dingell turned partly along generational lines - with young turks lining up against the old - and partly because of Dingell's record on environmental issues.

On a human level, many of the Democrat's colleagues are sad to see Dingell's defeat come shortly before the Michigan representative celebrates the 53rd anniverary of his arrival on the Hill. In February, he will become the longest-serving House member ever in U.S. history.

There was a last minute attempt to forge a compromise, which would have had Dingell announce that it would be his last term as Chairman. But neither Dingell or challenger Henry Waxman would go for half measures.

Waxman's victory in the contest for the Committee's gavel could set up a leadership fight for the California lawmaker's subcommittee chairmanship - with some more aggressive members wanting to challenge the next ranking member - Rep. Edolphus Towns of Brooklyn.

From NBC's Mike Viqueira and Carrie Dann
In the waning hours of the 110th Congress, shakeups on both sides of the Capitol dome this morning marked defeats for two of the Hill's most long-serving members.

In the House, Rep. John Dingell, a member of Congress since 1955 who has served as the chairman or ranking member of the powerful Energy and Commerce Committee for 28 years, was defeated for another term as chair by California Rep. Henry Waxman.  Waxman has himself served since 1975, ten fewer terms than Dingell, whose tenure in the House is the longest in the body's history.

On the other side of the rotunda, Sen. Ted Stevens, at 40 years the longest-serving Republican in Senate history, said goodbye on the Senate floor today.  Stevens was defeated in his reelection bid by Democrat Mark Begich, the mayor of Anchorage who was six years old when Stevens was first appointed to his Senate seat.

The Senate's oldest member, Robert Byrd, came into the chamber during Stevens' speech and later rose to deliver  --  with characteristic flourish -- eulogistic praise for his dear friend Stevens. He shouted "huzzahs" to punctuate the tributes of his colleagues they spoke in praise of their departing Alaska senator. Now in frail health, Byrd has recently stepped aside as chairman of the powerful Senate Appropriations committee.

(It's also worth noting that today is not only a tough day for the Capitol's old guard, but for one state's Democratic delegation in particular. Michigan lawmakers saw not only the leadership defeat of Dingell, one of the anchors of the state's delegation, but also the apparent stalling of an emergency bailout plan for the Detroit-based auto industry.)

From NBC's Cherelle Kantey
ARLINGTON, Va. -- Greeting a few smiling supporters at a Costco warehouse here, former (and maybe future) presidential candidate Mike Huckabee made his first stop on his tour promoting his new book, "Do the Right Thing: Inside the Movement That's Bringing Common Sense Back to America" book tour.

Huckabee gleefully offered a hearty handshake while autographing his campaign memoir.
"The central message is that the Republican Party has a great future, if we get back to being the party of principle, clarity and conviction," he said. "And we're going to do that."

The book, released yesterday, has stirred some controversy in the media over its apparent swipes at his former rival for the GOP nomination, Mitt Romney. In several instances in the book, Huckabee charged Romney for being out of touch with voters and for flip-flopping on certain issues. In an example from a debate where Romney was asked about how to help the economy, Huckabee writes that Romney was more focused on reciting lines about his business expertise than on helping the average American.             

"I stood there in stunned silence when he went into his well-prepared, programmed answer about how we needed to invest more in high-yield stocks," he writes. "That moment was perhaps the single most revealing of what was wrong with our party. We had people leading us who knew the country club, but not Sam's Club."

Huckabee reassured attendees of the book signing that there's more to the book than the rehashing of an old beef with Romney. "It's a very, very small part of the book," he said. "It's really not about the past or about the other people in the party. It's about the future of the party, [which] starts with being true, authentic conservatives with clarity in our convictions."

Anna Higgins, former grassroots volunteer for the Huckabee campaign, said she thought the comments about Romney were dead on. "I think Mitt Romney is a flip-flopper," she said. "It just makes me nervous some of the things he's changed his mind on."

Another Huckabee supporter said he the comments were no big deal. "I'm not listening to the pre-read flap," said Sanford Horn. "The Mitt Romney flap is much ado about nothing and way for media to stir up trouble amongst Republican figures who are well-known -- to divide the party."

Huckabee spent the hour-long book signing by hugging his supporters, even greeting a former staff member who said he was proud to see Mike out in the public eye again.

"He's my friend, former boss, and I am very proud of him in so many ways," said Brian Summers. He commented on how Huckabee waited to greet everyone who wanted an autographed copy of the book.

"He stayed here until everybody was done. [It] was the same way on the campaign trail. We never left anybody in line who did not get a chance to meet him."

As the Atlantic's Marc Ambinder writes, Huckabee today takes his book-signing tour to Iowa, which he won back in January. 

From NBC's Chuck Todd
According to House Democratic sources, Henry Waxman beat John Dingell in a 137-122 vote to be the next chairman of the House Energy and Commerce Committee, which Dingell currently chairs.

From NBC's Chuck Todd
Earlier today, we mentioned how some are concerned that Hispanics might be shut out of high-profile cabinet positions. Well, First Read has learned that Miami Mayor Manny Diaz is in the vetting process for two potential posts: HUD and Transportation -- with HUD apparently the job offer he's most likely to get. If Diaz is tapped, he'd be the first major Hispanic pol to get a nod for a cabinet post.

Still, quite a few key Hispanic supporters of Obama have been concerned by the lack of Hispanics being considered for some of the higher-profile posts. 

Interestingly, George W. Bush's first HUD secretary -- Mel Martinez -- also was a Florida Cuban pol who headed a major metro area. Martinez is now senator of Florida.

*** UPDATE *** A potential problem for Diaz at HUD? NBC's AJ Goodwin flags to our attention a Miami Herald investigation about Miami's public housing mess. According to the paper, the city and county tore down much of the public housing with promises to replace it with better options. But much of the new housing was never built, and what was built was not filled in a timely manner.

In the end, HUD ended up taking over the county-run Miami-Dade Housing Agency in April 2007, saying it "demonstrated a pattern of financial irresponsibility and mismanagement." And last summer, Habitat for Humanity came to Miami to build affordable housing on the land the local government had failed to re-develop.

Per the Herald, "Diaz acknowledged problems in the housing program but said he inherited them and has worked to put safeguards in place, such as creating penalties for affordable-housing developers who sell city-subsidized land for profit. 'Everybody makes mistakes,' he said. 'But if you look at that record and if you contrast it to where the city was before I got here ... I think that's a good news story.'"

[CORRECTION: An earlier version of this post incorrectly identified the Miami-Dade Housing Agency as the Miami Housing Authority.]

From Chuck Todd, Mark Murray, Domenico Montanaro, and Carrie Dann
*** Tracking the transition: Today's unofficial pick of the day appears to be Janet Napolitano for Homeland Security. A Napolitano pick would show that Obama views the immigration part of the DHS job as the priority. Of course, like every leak out of the vetting process, nothing is official; in fact one Dem source says that while she's a leading contender for DHS, it's not the only post she's being vetted for. Another governor to keep an eye on today as the next potential "leaked" pick: Kansas Gov. Kathleen Sebelius. The vetting process is well under way for her, and the most likely spot for her appears to be Labor secretary, although she might also wind up at Energy. But Labor makes the most sense, as both the business community and labor seem to be fans. As for the media obsession over the Hillary Clinton pick, it appears Bill is making it clear he's cooperating fully. Bloomberg News reports that he's turned over to the Obama vetting operation the entire list of 200,000+ donors to his library and foundation. By the way, while we keep hearing about leaked picks for Commerce (Pritzker), Labor (Sebelius), DHS (Napolitano), and HHS (Daschle), it's interesting that there is nary a peep in the chattering class about Treasury secretary. How come?

Video: NBC Political Director Chuck Todd offers his first read on the Clinton's trying to force Barack Obama's hand on the secretary of state position and some of the latest contenders to join Obama's cabinet.

*** Como se dice, "Shut out"? As Obama's cabinet takes shape, there's a glaring omission: Hispanics. With Bill Richardson apparently destined to be the bridesmaid in the secretary of state sweepstakes, some key Hispanic supporters tell First Read that they are concerned that no Hispanics will fill any of the major White House or cabinet positions. It's a bit frustrating to some leading Hispanic Democrats, especially considering how decisively Hispanics went for Obama in this election. Hispanics, literally, were the difference between winning and losing for Obama in at least two states, New Mexico and Indiana. But for the future of the Democratic Party, if Obama truly does have designs on a realignment, he needs to cultivate Hispanics into the Democratic tent. So far, many Hispanics are not happy with the leaks coming out of the transition and the lack of Hispanic names being floated outside of Richardson.

*** The path to 60: If Democrats don't reach 60 Senate seats this year -- by winning both the run-off in Georgia or the recount in Minnesota -- they'll probably get there in 2010. Why? Because for yet another cycle, Democrats are playing with a favorable hand. They have to defend 16 seats, and outside the one held by Harry Reid (more on him below), as well as the ones that Obama and Biden are giving up, they look pretty safe for now. By comparison, Republicans will have 19 Senate seats to defend, including potentially challenging ones like Mel Martinez in Florida (even if he runs), Jim Bunning in Kentucky, and David Vitter in Louisiana. Folks like John McCain (especially if Janet Napolitano runs, although that looks less likely right now), George Voinovich, and even Chuck Grassley might have real races on their hands or could be candidates for retirement. In short, even with the Two-Year Itch, Democrats look more likely to pick up Senate seats than Republicans do at this early juncture. That perception could make it especially difficult for incoming NRSC Chair John Cornyn when it comes to the three R's: retirements, recruiting, and resources. Indeed, on the money front, Republicans might decide that they have better opportunities with House and gubernatorial races in 2010. Then again, it's early. At this point heading into the 2005-6 cycle, Dems looked like they would pick up just a couple of Senate seats, versus the six they ended up winning. But to take advantage of an environment that becomes more favorable, you need help with the three R's. 

*** When Harry met re-election: With Senate Majority Leader Harry Reid up for re-election in 2010 -- and with him being potentially the Dems' most vulnerable incumbent -- it's worth keeping an eye about how his actions in the Senate might affect his re-election bid. Indeed, is this one of the reasons that he and most of his colleagues gave Joe Lieberman just a slap on the wrist on Tuesday? You might have forgotten it, but Reid narrowly won re-election in 1998 by just slightly more than 400 votes. Of course, that race was against John Ensign, who ended up winning a Senate seat two years later. After the most recent election, in which Obama won the Silver State and Dems won Jon Porter's (R) House seat, Democrats have to feel better about winning in Nevada. But it still remains a swing state.

*** Southern comfort: Right before the election, we noted the danger of the Republican Party becoming a regional -- i.e., southern -- party. Well, after the House and Senate conducted its leadership elections in the past two days, we know that southerners will now fill six out of the GOP's combined 13 leadership positions in the two chambers. They are: House Minority Whip Eric Cantor (VA), House Conference Secretary John Carter (TX), NRCC Chairman Pete Sessions (TX), Senate Minority Leader Mitch McConnell (KY), Senate Conference Chair Lamar Alexander (TN), and NRSC Chair John Cornyn (TX).

*** Just wonderin': But it does seem as if Michael Steele is trying to win the early media war for RNC chair? In fact, because of Steele's FOX News contract, he's on the air daily talking to GOP partisans who watch that news channel. So it's a grassroots advantage that neither Saul Anuzis, nor Katon Dawson, nor others have. At what point do you put FOX down as an endorser of Michael Steele's campaign?

*** The remaining Senate races: In Minnesota, with about 18% of the vote recounted, the Minneapolis Star Tribune says that Norm Coleman's (R) lead is now at 174 votes, down from the 215-vote lead that was certified on Tuesday. "Franken's gain owed much to a swing of 23 votes in the Democratic stronghold of St. Louis County -- the result of faintly marked ballots and older optical scanners that failed to read the marks." … And for the Georgia run-off, there's tons of coverage of Bill Clinton campaigning yesterday for Jim Martin (D). and

*** More on Minnesota: The Minnesota recount is going to be some story to follow. In addition to the Star Tribune is doing its best to update the count by incorporating new tallies into the official count, Minnesota Public Radio is posting various ballots being challenged. This, in fact, is hours of fun. 
 
Countdown to Georgia Senate run-off: 12 days
Countdown to Electoral Vote Count: 49 days
Countdown to Inauguration Day 2009: 61 days

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