US market may be bolstered after government bails out Fannie and Freddie

The US government has taken control of two mortgage lending firms that between them account for over half the country's market in a move costing hundreds of millions of dollars.

Fannie Mae and Freddie Mac have been saved from possible collapse in a move the Bush administration believes is vital for the US economy, ensuring that millions of mortgages are underwritten.

Such a move may help those investing in property in the USA as the credit crunch is expected to be eased by the move.

Already today Asian stock markets have rallied in response, with Merrill Lynch's head of Asia debt origination Jon Pratt telling Bloomberg the bail-out is expected to boost "long-term confidence" in the market.

London's stock market is also expected to make gains, with Graham Neale, a spokesperson for private stockbrokers Killick & Co, telling the BBC: "The markets are certainly going to rally today because investors are going to say 'Maybe we can see light at the end of the tunnel in terms of the credit crunch'."