Kass: My 'Fast Money' Recap (and Then Some)

This blog post originally appeared on RealMoney Silver on Nov. 3 at 9:35 a.m. EST.

Last night, I was on a segment with Melissa Lee and CNBC's "Fast Money" team. As always, I had a lot of fun doing it.

Each segment of "Fast Money" lasts only about five or six minutes. The pace is quick, almost staccato-like, and there is a time limit to how much one's arguments can be fully explained in order to support one's market conclusions.

I thought instead of summarizing my appearance, as I customarily do, I would expand upon the points I made on the show.

For those interested in watching the abridged, "Cliff Notes" version, here is the tape of last night's show.

I started the show by saying that the investment mosaic always contains positives and negatives. The job we have is to figure out which factors will dominate and for how long a period of time they will serve as an influence.

So I had some good news and some bad news last night.

Not surprisingly, I started out first with the bad news because I believe that, over the short term, the negatives will dominate the market landscape.

Like my buddy/friend/pal, the handsome Guy Adami, I am currently dating "Debbie Downer."

Troubling Fundamentals

America is about to experience a transformation from a nation with debt growing faster than incomes to a nation in which incomes will grow faster than debt. And it's not because incomes are growing especially quickly. They are not; they are trending lower. It is because of the expected large contraction of consumer debt, and the great debt unwind is the obvious byproduct of the credit crunch just passed.

That's why on last Monday's "Fast Money," I warned that a hard correction of 5% to 12% from the highs could be ahead of us because the state of the consumer is different this time. Remember, on the week-ago show, I doubted the sustainability of the economic recovery. I felt that investors would look right through the better-than-expected third-quarter GDP print that was so government-dependent and also, upon further thought, would look through the silly earnings beats, which were off of manipulated guidance by corporations' investor relations departments.

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At the time of publication, Kass and/or his funds had no positions in the stocks mentioned, although holdings can change at any time.

Doug Kass is the general partner Seabreeze Partners Long/Short LP and Seabreeze Partners Long/Short Offshore LP. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.