Bill Miller warns on US sub-prime

Bill Miller, Legg Mason' star US manager and CIO, has warned investors about the seriousness of the s...

Bill Miller, Legg Mason’ star US manager and CIO, has warned investors about the seriousness of the sub-prime problems. The manager of US Value Trust and US Opportunity Trust said the credit crunch could be more serious than the Crash of ’87 since while the former was confined to Wall Street, the recent crisis has hit the high street. “The primary function of the stock market is not to finance company operations, it is to price assets,” he said. “Credit markets are different. They are the source of liquidity to fund operations. If they are not functioning, the economy is threatened. ...