Minnesota may have to be represented by just one senator when the 111th Congress convenes on Jan. 6.

Minneapolis Star Tribune:

Tuesday's events did little to clarify what will happen if neither Republican Sen. Norm Coleman nor DFLer Al Franken is declared the winner by the time Congress convenes Jan. 6.

Asked if Gov. Tim Pawlenty might move to fill the gap, spokesman Brian McClung said Pawlenty hadn't yet consulted with the state attorney general, but "our office has looked at this and it appears the governor only has the authority to appoint in the case of a permanent vacancy and this situation likely wouldn't apply."

So when will voters begin to see something close to a conclusion in this election drama?
St. Paul Pioneer-Press:

Instead, their fate still will be in the hands of the Minnesota canvassing board. The board has a meeting scheduled at 2 p.m. Jan. 6 to tidy up loose ends on the recount.

"We are not in any way guided by any Washington considerations (or) timelines," said Secretary of State Mark Ritchie, chair of the canvassing board. "Our top priority is accuracy and transparency and the timing thing is just not our issue. ... We don't care when this is done."

But he and the campaigns are quickly moving forward on the final steps of the recount.

White House Counsel-designate Greg Craig said today that only one person on the Transition team spoke with the office of Gov. Rod Blagojevich and that all contacts and communication were "appropriate and acceptable."

"Only one member of the Transition staff had any such contacts, that was Rahm Emanuel who had a couple conversations with the governor and about four conversations with the governor's chief of staff," Craig told reporters on a conference call shortly after releasing the report. "No one in the circle was aware of what was going on in the governor's mind until he was arrested."

Craig also reiterated that President-elect Obama's statement that he had no contact with the governor or his office was accurate.

Craig and Robert Gibbs, the White House Press Secretary-designate who was also on the call, said the report was ready for delivery on Dec. 15, but were asked by the U.S. Attorney's Office not to release it until they had completed interviews with members of the Transition. Those interviewed included only Obama, Emanuel and Valerie Jarrett, said Craig.

Here are some quick highlights from the internal review of the contacts made by the Obama Transition team and Gov. Rod Blagojevich's office, which was released today at 4:30 p.m. ET. The full letter in .pdf format can be downloaded at the Transition website.

The following quotes were written in a letter by White House Counsel-designate Greg Craig:

*"The President-Elect had no contact or communication with Governor Blagojevich or members of his staff about the Senate seat. In various conversations with transition staff and others, the President-Elect expressed his preference that Valerie Jarrett work with him in the White House. He also stated that he would neither stand in her way if she wanted to pursue the Senate seat nor actively seek to have her or any other particular candidate appointed to the vacancy."

*"Mr. Emanuel had one or two telephone calls with Governor Blagojevich. Those conversations occurred between November 6 and November 8, 2008. Soon after he decided to accept the President-Elect's offer to serve as Chief of Staff in the White House, Mr. Emanuel placed a call to the Governor to give him a heads up that he was taking the Chief of Staff's position in the White House, and to advise him that he would be resigning his seat in the House of Representatives. They spoke about Mr. Emanuel's House seat, when he would be resigning and potential candidates to replace him. He also had a brief discussion with the Governor about the Senate seat and the merits of various people whom the Governor might consider. Mr. Emanuel and the Governor did not discuss a cabinet position, 501c(4), a private sector position for the Governor or any other personal benefit for the Governor.

"In those early conversations with the Governor, Mr. Emanuel recommended Valarie Jarrett because he knew she was interested in the seat. He did so before learning -- in further conversations with the President-Elect -- that the President-Elect had ruled out communicating a preference for any one candidate."

President-elect Obama and Vice President-elect Biden announced today more nominations and appointments to their national security team. James B. Steinberg and Jacob Lew were both nominated to serve as Deputy Secretary of State. The appointments of Thomas E. Donilon as Deputy National Security Adviser and Antony “Tony” Blinken as National Security Adviser to the Vice President were also announced.

Read the bios of the nominees and appointees after the jump. (more...)

At a meeting with economic advisers today in Washington, Vice President-elect Biden briefly commented to the press pool on the internal review report that the Obama Transition team will release later today:

"Oh I don't think there's anything to exonerate. It's been clear that the president-elect has had no contact with Blagojevich, and you've seen that he's asserted and you'll find in the report that's being released today that there's been no inappropriate contact by any member of the Obama staff or the transition team with Blagojevich."

Adding to this year's holiday cheer, home prices fell a record 13.2% in November while new home sales dropped to a 17-year low.  “November sales just collapsed,” Chief Economist at FTN Financial in New York told Bloomberg. “Price declines are accelerating. As bad as this is, it's going to be considerably worse in a month's time."

Even beyond December, next year's forecasts for the housing market are equally grim. And California, which is already digging for loose change in the sofa cushions to try to pay its bills, is projected to be the hardest hit by the continuing crash in the housing market.

According to a new anaylsis by Fortune Magazine, eight of the ten "Worst Housing Markets for 2009" are in the Golden State. Los Angeles is atop this troublesome list; it's projected to suffer another 24.9% dive in median home prices next year. The rest of the list follows, along with the projected decrease in median home prices for 2009 in parentheses:

2. Stockton, CA (-24.7%)

3. Riverside, CA (-23.3%)

4. Miami-Miami Beach, FL (-22.8%)

5. Sacramento, CA (-22.2)

6. Santa Ana-Anaheim, CA (-22.0%)

7. Fresno, CA (-21.6%)

8. San Diego, CA (-21.1%)

9. Bakersfield, CA (-20.9%)

10. Washington DC/Arlington-Alexandria, VA (-19.9%)

Needless to say, this will have all sorts of negative economic ramifications for the country (and for California in particular), not the least of which are more foreclosures, lower tax revenue, and less consumer confidence and spending. And we haven't even started talking about the bubble that is just starting to burst in the commercial real estate market.

Looks like it's going to be a less than happy New Year.

President-elect Obama continues his family holiday vacation in Hawaii today, while Vice President-elect Biden is at the Transition offices in Washington to discuss an economic recovery package with advisers.

The Transition team's internal review of its contacts with Gov. Rod Blagojevich is expected to be released at 4:30 p.m. ET today. In the meantime, new White House staff hirings have been announced:

*Cassandra Butts, Deputy White House Counsel
*Elizabeth Sears Smith, Deputy Cabinet Secretary
*Shawn Maher, Deputy Director of Legislative Affairs for the U.S. Senate
*Dan Turton, Deputy Director of Legislative Affairs for the U.S. House
*Camille Johnston, Director of Communications for Michelle Obama
*Katie McCormick Lelyveld, Press Secretary for Michelle Obama
*Semonti Mustaphi, Deputy Press Secretary for Michelle Obama

It was also announced today that Obama will be sworn in to office with the Bible used by Abraham Lincoln in his 1861 inauguration. That Bible hasn't been used for an inauguration ceremony since then. "The President-elect is committed to holding an Inauguration that celebrates America's unity," said Presidential Inaugural Committee Executive Director Emmett Beliveau, "and the use of this historic Bible will provide a powerful connection to our common past and common heritage."

New York voters remain split on who they think Gov. David Paterson should appoint to the state's vacant Senate seat. According to a new Quinnipiac survey, 33% want Caroline Kennedy to be the next senator and 29% want Atty. Gen. Andrew Cuomo. Rep. Kirsten Gillibrand is preferred by 4%, while 24% want someone else and 10% are undecided.

The biggest question surrounding the situation is whether Kennedy has the credentials worthy of an appointment. The poll (Dec. 17-21, 834 NY RV) found voters split on this as well, with 40% saying Kennedy is qualified and 41% saying she is not. Still, 48% believe Paterson will name her the next senator anyway.

Franken's lead is down to 48 votes, according to an analysis by the Star-Tribune:

The new unofficial numbers include most of the allocated votes, but not those from some unresolved ballot challenges. Nor do they include as many as 1,500 to 1,600 improperly rejected absentee ballots that are still to be dealt with. In addition, the Coleman campaign contends that about 130 ballots may have been double-counted and is seeking court action on those.

The Coleman campaign has filed suit with the Minnesota Supreme Court seeking to have to have close to 150 ballots excluded which they claim have been "double counted," arguing this afternoon to reporters that Coleman will reclaim the lead in the race if the Court upholds their motion. Franken's campaign says, "There is no evidence that any ballot has been counted twice.  None."

No word on when the Supreme Court may issue a ruling. The State Canvassing Board reconvenes tomorrow to continue its work. Stay tuned.

A new CNN/Opinion Research national poll finds that 23% of American adults think Dick Cheney is the worst vice president in history. The survey (Dec. 19-21, 1013 A) also shows 41% think Cheney is a poor VP, while 34% think he's a good one and 1% believe he's the best ever.

On "Fox News Sunday" yesterday, Cheney discussed a number of topics, including his and President Bush's poor poll numbers, as well as his feelings about Vice President-elect Joe Biden. You can watch the interview here.