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Alternative Market Briefing

Investors should judge countries based on their fiscal responsibility - Florida Roundtable

Wednesday, June 23, 2010

From Sagar Chakraverty, Opalesque Asia:

"The issue is that since 2007-2008 there has been no change to market structure. Despite all that happened, there was no real market or financial reform. I think the same applies to the fundamental economic policy that we follow here in the United States and certainly in large parts of Europe and the developed market world. We have only put a bandage on the problem," said Jonathan Binder, the CIO of Consilium Investment Management, a Fort Lauderdale-based specialist in emerging and frontier market debt , equities, and global credit, during the latest Opalesque Roundtable in Miami.

He indeed is of the opinion that the world had only adopted damage control measures post-2008 crisis, without addressing the real fundamental problems neither in the fiscal sense nor in a broader economic sense.

"So to me it is not surprising to still see such volatility in the markets, because the system is pumped with cheap and easy credit again. This was precisely one of the issues that got us into the 2008 disaster... In my view, we should expect big, big problems once again," Binder cautioned.

Developed and emerging markets and their fiscal soundness Investors should no longer make their investment decisions based on traditional characterization of developed markets and......................

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