Investors too optimistic on US sub-prime issues - Resolution

The US sub-prime mortgage lending issues are more serious then investors realise, according to James...

The US sub-prime mortgage lending issues are more serious then investors realise, according to James Smith, CIO of specialist funds at Resolution Asset Management. Smith believes investors are too optimistic, following recent Federal Reserve suggestions that there will be imminent easing of policy, and that sub-prime problems might have a limited impact on the wider US economy. The Federal Reserve is not dismissing the chances of the market worsening, he added. Smith believes the crisis could easily hit US consumer spending and trigger job losses, particularly in the housing constructi...