"Big Three" make another bailout plea

WASHINGTON, D.C. (NBC) - For the "Big Three" United States automakers, it could well be their last chance to prove that $25 billion in taxpayers' loans are critical to their survival. They submit their restructuring plans to Congress as Americans get official word the national economy is in recession.

Goldman Sachs said it lost $2 billion last quarter, five times original estimates. It is more bad news for a major bank, as carmakers and states compete for government help Tuesday.

In a fresh bid for billions in loans, carmakers submit their survival plans. One challenge is to restore public sympathy lost in hearings last month, where the "Big Three's" spending priorities were in question.

"Couldn't you have downgraded to first class or jet-pooled or something to get here?" said New York Congressman Gary Ackerman.

The CEO for Ford said he will drive a hybrid to hearings this week.

All three plans are expected to:

• cap executive pay
• detail concessions from union workers
• promise greener fleets, an overhaul for carmakers that thrived off the F-150 and trucks like it.

"This is the big deal," said David Cole, Center for Automotive Research director. "This is where they make an argument to Americans and Congress."

Whether more Americans face unemployment could hinge on automakers' fate. JP Morgan Chase is laying off 9,200 Washington Mutual workers as the two banks merge.

"What am I going to do now? I'm going to look for a new job you know," said WaMu employee Tiffany Darbyshire.

News the economy is officially in recession rattled nerves on Wall Street. Investors snapped a string of up-days and dumped shares en masse. Even big post-holiday crowds did not lift spirits. Deep discounts mean retailers barely notched a profit. Meanwhile, Congressional Democrats are devising a stimulus, as much as $500 billion to boost jobs

"It's going to be about innovation and about the future- about changing the jobs of the 21st century," said House Speaker Nancy Pelosi.

On Tuesday, President-Elect Barack Obama meets with the nation's governors who want a big chunk of that. California's budget gap could hit $28 billion. Of the 50 states, 43 are looking at big shortfalls.