Today’s the deadline for the Big Three auto makers to present their recovery plan proposals to Congress in order to get a $25 billion bailout.

All eyes will be on Capitol Hill to see the reaction of top lawmakers after the plans are in place. GM, Ford and Chrysler hope to convince lawmakers to approve the $25 billion in low-cost loans to help them survive the current downturn.  The deadline comes as auto companies are due to release their November sales figures, which are expected to be low.

We all knew the economy had been in a slump, but stocks tumbled around the world after confirmation that the United States had entered recession in December 2007. The confirmation by the U.S. arbiter of recession plus a warning from Federal Reserve Chairman Ben Bernanke triggered a sell-off on Wall Street which in turn sparked a domino-effect around the world.

Overseas the yen rallied to a five-week high against the dollar due in part to shaky stock markets.  Stocks in the U.S. were pegged to recover a bit on Tuesday, in part because of hopes for an auto industry bailout.

The economy will be on the minds of President-elect Barack Obama and Vice President-elect Joe Biden as they take part in a meeting in Philadelphia of the National Governors Association.

Obama and Biden will make comments at the beginning of the meeting then it is closed to the media. But they are expected to talk about ideas of how to fix the economy. Included will be discussions on how to improve infrastructure in the United States and how to work together on boosting the economy. 

Just when you thought the longest election in U.S. history was over — we have another vote, in Georgia. Voters will go to the polls for a runoff election between Republican incumbent Saxby Chambliss and Democrat Jim Martin. Chambliss is expected to win, which would mean Democrats would not be able to reach a 60-seat “super majority” that would enable them to pass legislation virtually at will.

REUTERS/Rebecca Cook (Auto workers at Ford plant)
REUTERS/Tami Chappell (Georgia Sen. Saxby Chambliss at rally)

WASHINGTON - U.S. President-elect Barack Obama and his defeated Republican rival, John McCain, are engaged in somewhat of a rematch. The two are trying to help their respective parties win a razor-close U.S. Senate race in Georgia. 

McCain has accepted an invitation to attend a rally in Atlanta on Thursday for Republican Sen. Saxby Chambliss, while Obama aides are being dispatched to the state to provide a hand to Democratic challenger Jim Martin, a former state senator.

A Dec. 2 runoff is being held because neither Chambliss nor Martin obtained the majority required under state law in the Nov. 4 election to be declared the winner.

A Democratic aide said no final word has been given on whether Obama will visit Georgia on behalf of Martin. A Republican aide said there’s a chance former vice presidential nominee Sarah Palin may show up for Chambliss.

While Obama won the White House, McCain took Georgia.

Georgia is one of three states where tight U.S. Senate races have yet to be decided.

The two others are in Minnesota, where Republican incumbent Norm Coleman is trying to fend off a challenge by Democrat Al Franken, and Alaska where Republican incumbent Ted Stevens, convicted last month of political corruption, is clinging to a narrow lead over Democrat Mark Begich.

Democrats gained six seats in Tuesday’s election to increase their majority in the 100-member chamber to 57.

If they win the three remaining races they would reach for the first time in three decades the 60 needed to pass legislation over Republican hurdles.

Both political parties along with political analysts say they don’t expect Democrats to run the table and pocket 60.

For more Reuters political coverage, click here.

Photo credit: Reuters/Tami Chappell (Sen. John McCain grabs arm of Georgia Sen. Saxby Chambliss during campaign rally last February in Georgia)