The news that the American government has taken over Fannie Mae and Freddie Macis in many of the papers.

The Independent leads with the story reporting that

The Bush administration ripped up years of laissez-faire economic policies last night and launched a government takeover of two of the most powerful mortgage companies in the US. The move is designed to forestall a collapse in house prices that could plunge America into a new Great Depression and trigger chaos on the world's financial markets.
The seizure of the two lenders, Fannie Mae and Freddie Mac, puts a federal guarantee behind an extraordinary $5trn of outstanding mortgage debt, and writes a blank cheque from the US taxpayer that could ultimately run into tens of billions of dollars of support for the country's ailing housing market.

As does the Telegraph which says that

The multibillion-dollar rescue of Fannie Mae and Freddie Mac - dwarfing the UK nationalisation of Northern Rock - will be funded by the American taxpayer.
It represents a potential liability of £2,900 billion. The move was welcomed by mortgage experts in the UK, who said it should inject some confidence into the British housing market, which is suffering from the steepest fall in prices since the 1930s.

Politics on the front of the Times and the Guardian,the former says under the headline,This time it’s personal as Brown takes on doubters reports that

Breaking his silence on the crisis that is menacing his political future, Mr Brown tells his Cabinet that he will confront the current problems in the way he has dealt with his own troubles in the past. In a rare show of emotion, he makes a reference to the death of his daughter a few days after she was born and the loss of an eye because of a rugby injury at school. Mr Brown writes: “My own response to the great challenges in my own life has been to confront them, resolute in the belief that there would always be something that could be done to overcome them. And there always has been.

The Guardian has an interview with the shadow chancellor who tells them

Britain's dire public finances will impose a "straitjacket" on an incoming Conservative government for years to come, the shadow chancellor, George Osborne, claims today, as he declares that he is conducting a careful review of his economic plans in the light of the downturn.
In an interview with the Guardian, Osborne claims that "the complete economic mess" will "cast a long shadow" over British politics, prompting the Tories to think "very hard" about what they will do in government

The Independent reports that

Next year's national curriculum tests for 1.2 million 11- and 14-year-olds in England could be the last, the Schools Secretary, Ed Balls, signalled yesterday.
The Standard Attainment Tests (SATs) are likely to be replaced by a new system under which pupils will be tested on maths and English as and when their teachers believe they are ready, with no end-of-year national test for all. The system would be similar to music exams, where children take a graded test when they have reached a certain level of performance

The Mail reports that

Unions have threatened another Winter of Discontent, with three months of crippling strike action before, during and after Christmas.
Around one million key workers are gearing up to take industrial action starting in November which threatens to bring Britain to a standstill.
Union leaders said their members are disgusted by a Labour Party which is forcing them to accept below-inflation pay rises - effectively a pay cut.

A weekend of weather misery is in many of the papers,

Flooding and severe storms led to the deaths of at least eight people and the evacuation of hundreds of families as relentless rain fell across the country over the weekend.
A geologist died when he was buried by a mudslide in the Cotswolds and a teenage girl was killed when a car overturned in a stream during an adventure holiday in Wales.
Flooding is likely to worsen over the coming days as rainwater drains into river systems, the Environment Agency said yesterday. The agency issued 72 flood warnings for England and Wales, three of them severe, and placed 146 areas under flood watch. By this morning the severe warnings had been lifted and others had been downgraded. There were five flood warnings in Scotland.

says the Times

The Express meanwhile tells us that

THE tail-end of a hurricane is set to batter Britain after a killer storm at the weekend claimed eight lives and caused millions of pounds of damage.
Howling gales and a month’s worth of rain lashed the country in just 48 hours, but last night Met Office experts warned that after a short respite worse is to come.
The remnants of Hurricane Hanna, blowing in from across the Atlantic, is expected to hit Britain on Thursday.

The Telegraph reports Thousands evacuated in Cuba and the US

The powerful Category 4 hurricane, which contained winds of up to 135mph, is heading into the Gulf of Mexico and could eventually hit anywhere from Florida to Mexico, including New Orleans.
As most of the city had just struggled home after evacuating last week over Hurricane Gustav, Ray Nagin, the New Orleans mayor, warned that it would be difficult to persuade so many of them to leave again so soon

The Mail leads with one of the stories from yesterday

Muslim peer and ex-Archbishop lead unprecedented bid to cap migration at 20,000 a year

An unprecedented coalition of public figures will today call for a limit on migrant numbers settling in the UK.
The group of MPs and peers, including a former Archbishop of Canterbury, want a policy of 'balanced migration'.
Only around 20,000 non-EU economic migrants would be allowed to stay permanently each year. The rest would have to go home after four years.

The Independent reports that Study finds huge differences in regional health spending

The differences have been revealed in an analysis of spending patterns across the country. They show how unequal the National Health Service, which was set up to provide care according to need, has become in reality. Wide variations in the amounts spent on various diseases from primary care trusts' £69bn budget, which accounts for three quarters of the total NHS budget, suggest a "postcode lottery" operates similar to that for expensive drugs.

says the paper

The Guardian says

The NHS spends far more on treating people with diseases like cancer and heart disease in some areas of the country than in others, a study has found.
The King's Fund, which has carried out the analysis, says that after adjustment for the age and the health of the population, there is little explanation for the striking variation on spending from one primary care trust to another, and it probably cannot always be justified

Terror groups developing 'dirty bomb' says the Telegraph

Islamist terrorists have stepped up their efforts to develop a 'dirty' bomb for use against Western targets, senior Western security sources have told The Daily Telegraph.They are exploiting the political chaos in Pakistan in a bid to acquire nuclear material for a 'spectacular' attack.
At least one plot has been uncovered involving Pakistani-based terrorists planning to use nuclear material against a major European target

The Sun leads with the news that

DESPERATE Jade Goody grabbed crack cocaine from her addict mum’s stash and smoked it in front of her — in a frantic bid to cast the deadly drug out of their lives.
But the dramatic gesture failed to cure sad Jackiey — and left Big Brother star Jade as sick as a dog.
Jade, 27, has always condemned crack and heroin abuse as they led her dad into a life of crime before he died of a suspected overdose at 42.

According to the Independent,

Pub closures have soared to a record high – 36 a week – as drinkers choose to buy cut-price alcohol for consumption at home.
The British Beer and Pub Association said 936 pubs ceased trading in the first six months of 2008. Pubs are shutting nine times faster than in 2006 and 18 times faster than in 2005.
Publicans complain they have been hit by the smoking ban, rising rent and fuel bills, and aggressive discounting by supermarkets.

The Guardain reports that UN threatens to act against Britain for failure to protect heritage sites

The UN is threatening to put the Tower of London on its list of world heritage sites in danger after its experts accused the UK of damaging globally significant sites such as Stonehenge, the old town of Edinburgh and the Georgian centre of Bath, the Guardian has learned.
Unesco, the UN's cultural agency, has told ministers in London and Edinburgh that it wants urgent action to protect seven world heritage sites which it claims are in danger from building developments, and said in some cases the UK is ignoring its legal obligations to protect them.

News from abroad and the Times reveals that

Harrowing video film backs Afghan villagers' claims of carnage caused by US troops

The grainy video eight-minute footage, seen exclusively by The Times, is the most compelling evidence to emerge of what may be the biggest loss of civilian life during the Afghanistan war.
These are the images that have forced the Pentagon into a rare U-turn. Until yesterday the US military had insisted that only seven civilians were killed in Nawabad on the night of August 21

Palin power helps McCain draw level says the Independent

The introduction of Sarah Palin as a running mate and a week of sustained attacks on Barack Obama from the Republican National Convention have helped John McCain draw level in the latest opinion polls.
National surveys published over the weekend show the pair in a statistical dead heat, setting up a frenzied final 60 days of campaigning and pinning more importance than ever to the series of candidates' debates.

Many of the papers report that

The health of North Korean leader Kim Jong-Il is not worsening, according to South Korean official, but a Tokyo professor has meanwhile asserted that Kim died in any case in 2003.

the Telegragh says

Speculation has recently grown again that Kim, who is 66 and has not been seen in public for more than three weeks, is unwell. Some media have long thought that Kim, a former smoker and heavy drinker, was ill but Seoul intelligence officials say they believe he has diabetes and heart problems, but those are not serious enough to affect his job.

Finally some good sporting news as the Independent as does all the papers reports

Not even Tropical Storm Hanna could stop Hurricane Andy sweeping into his first Grand Slam final here last night after the greatest performance of the young Scot's life. Andy Murray had been stopped in his tracks by the wind and rain that ripped along the north-east American coast on Saturday, but he picked himself up and blew Rafael Nadal off the court when their US Open semi-final resumed 26 hours later.
Any fears that the overnight disruption would throw Murray off his path were dispelled as the British No 1 completed a superb 6-2, 7-6, 4-6, 6-4 victory over the world No 1. Nadal, who had swept all before him this summer, mounted a spirited comeback to take the third set, but in the end the Spaniard was outhit, outthought and outplayed. In tonight's final Murray will face Roger Federer, who will be attempting to win the title for the fifth year in a row.