British relief over US move.

THE decision by the US government to wade into the Fannie Mae and Freddie Mac debacle is something we should all be grateful for.

The desperate flailing around by these two institutions as the US mortgage market plunges deeper into crisis has been as painful for the global economy as it has for America.

The Bush administration has now taken control of the two quaintly-named mortgage giants, saying it was the only way to avert the potential for major financial turmoil as their bankruptcy could have triggered an economic collapse.

No wonder British mortgage experts are today heaving a sigh of relief at the historic move: it means that there is now a chance the UK's own failing housing market may pick up a little, as buyers and sellers are encouraged to dip their toes back in the property market.

It may take time for this to happen, but the industry does appear to be somewhat more optimistic now than it has been for several months.

If there is an economic upturn, it will come to late to preserve the independence of one of the North West's institutions; the Cheshire building society has merged with Nationwide, the UK's biggest mutual, to safeguard the interests of its 440,000 members.

The board says it had no choice, citing the current economic climate and the stalled housing market - what it calls the "unprecedented nature of the markets".

Nationwide will maintain the Macclesfield head office, but some back room and administrative staff may lose their jobs.

It is a sharp reminder of the present difficulties we are experiencing; the economy is not about to suddenly snap back into shape. In addition to the property market slump and rising food prices, the latest figures show that car sales are experiencing their biggest fall for 40 years. There is little to celebrate for the moment, but perhaps the US government's intervention is the first step on the long road back towards economic recovery.