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Snowmail: US government rescues mortgage lenders Fannie Mae and Freddie Mac

Updated on 07 September 2008

By Kylie Morris

On tonight's show...

There's a big financial story breaking in Washington as I write. The American government is in the process of announcing what is probably one of the most expensive rescues ever financed by taxpayers.

Its takeover of Fannie Mae and Freddie Mac could cost tens of billions of dollars. Between both companies they own or back an enormous five-trillion dollars in mortgages.

It's big. Much bigger than the rescue package Washington tried initially. Last Week the US unemployment figures were bad, causing our own stockmarket to fall. The effect of this fall will be seen tomorrow morning when the markets reopen.

Still damp up North

Our indomitable Nick Martin has spent the night with the indomitable folk of Morpeth - where more than a thousand homes have been flooded. Hundreds of people have moved into temporary accommodation.

We'll have his full report, and bring you up to date with the Environment Agency. Fears of flooding are easing but there are still warnings for more than 80 towns and villages.

TUC hoedown gets underway

The trades union annual hoedown has opened in Brighton, off to a flying start thanks to some snappy lines from Derek Simpson, joint general secretary of Unite.

The bits that could be printed were quite mean to David Miliband, and seem to suggest Labour voters could do worse than electing David Cameron.

In the harsh light of day, Derek Simpson now says it's not about individuals: there needs to be a change of policy, not a change of leadership.

We'll have him live on the programme to try to decipher what he really means, and ponder the unions' programme of rolling strikes for better pay, just when inflation is going through the roof.

Tomorrow, the Gordon Brown make-over goes mobile, when he takes the Cabinet on tour to the West Midlands. First time in years, apparently.

If you were thinking that feels a little gimmicky, then you're not alone. One Minister we spoke to, suffering a bout of frankness, agreed: "Yes, it is a gimmick." So, that's that then.

All this plus plenty of sport. And they told me Sundays were quiet!

See you at six thirty.

Kylie Morris

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