CNBC’s Lawrence Kudlow has sources which tell him that the TARP deal for the Detroit auto makers is not done — not by a long shot:

At a minimum, it’s going to take the Treasury several days to … see the cash-flow data and get to the truth about GM and Chrysler. (Ford doesn’t need the money.) And nothing will happen until these numbers are properly crunched. And the Treasury may well want to arrange for a built-in monitor — something that might even look like a car tsar — if any TARP money is dispersed.

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The Senate rejected the House’s $14 billion proposal to bolster the Big Three through short-term lending Thursday evening. General Motors has repeatedly warned lawmakers that the company could run out of cash before the end of the month. Many experts predict the car companies’ next move will be to try to get funding directly through the Bush Administration, a lifeline that may not require approval from either the House or the Senate.

Disappointed that lawmakers failed to join upon an agreement using “funds already appropriated for automakers,” The White House announced the possibility of utilizing TARP funds to stabilize Detroit’s auto industry this morning. “Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms. However, given the current weakened state of the U.S. economy, we will consider other options if necessary – including use of the TARP program — to prevent a collapse of troubled automakers. A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time,” said White House Press Secretary Dana Perino.

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If you’re sick and tired of hearing about the auto bailout, we apologize. We couldn’t resist posting this cartoon by Eric G. Lewis we found on Calculated Risk:

We’ve mentioned before that one of the most important things President-elect Barack Obama needs to do is instill confidence back into the American psyche. During these turbulent times that is no easy task — it won’t happen overnight, nor should America expect it to. That being said, Obama’s transition into the presidency is unlike any other. Although Obama has no presidential power until January, he must swiftly act and prepare now so that on Inauguration Day citizens will be confident and secure that our new commander in chief is ready to lead the change he has promised. Much of that starts with appointing a treasury secretary.

Despite the discussion of several possible candidates, Obama has yet to name his pick — could it be because no one wants the tremendous burdens the position carries with it? Numerous leaks out of Obama’s transition camp have revealed his likely choices for secretary of health and human services (Tom Daschle (S.D.)), head of the Department of Homeland Security (Arizona Gov. Janet Napolitano), and the attorney general (Eric H. Holder Jr.) — none of which will have an immediate effect on quelling the current economic situation.

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