FAST MONEY FEATURES
FAST MONEY POLLGet in the post game. Respond to our "Question of the Day" right now.
TRADE SCHOOLGrab a pencil because school is in session and the Fast Money traders are teaching class.
FAST MONEY PODCASTSDownload Fast Money onto your MP3 Player.
FAST MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
SHOP FOR FAST MONEY MERCHANDISEGet your game on with Fast Money gear.
FAST MONEY PHOTOS!Check out our scrapbook. These "pix" are guaranteed winners.
NEWSLETTERSign up and receive a recap email every Friday after the show!
FAST MONEY MOBILE ALERTSGet advanced information about the next Fast Money.
Text Size 
 |
According to Lord Abbett economist Milton Ezrati the current economic slowdown is very different than anything we’ve seen in recent times.
It’s not a classic business-led recession, he says, but rather a consumer-led correction. And as a result he thinks a period of subpar growth lies ahead.
Intrigued?
Following are excerpts from our conversation with Ezrati on Fast Money.
*********************
Why do you expect a long economic slog ahead?
I think the American consumer for 20 years has been piling on debt and it’s run it’s course and the subprime crisis is only going to reinforce it. The American consumer is going to have to cut back and it’s going to slow the economy and contribute to a global slowdown.
Is this a new phenomenon?
Yes. Only a few years ago the consumer was deep in debt but he was having no trouble borrowing money. And the money was continuing to flow from overseas. But both have ended. The consumer has started to pull back and the flow of money from overseas, the cheap easy money, is starting to dry up.
How do you see that trend impacting the financial markets?
I think what you’re going to have in the financial markets is a shift from the consumer to producers. As long as the dollar stays low American business is going to be the focus and consumers will take a backseat.
Are you saying write-off the consumer?
No. The consumer is 70% of the economy and you don’t just write the consumer off. It’s at the margin. You’re shifting from consumers to producers and that’s critical.
How would you allocate money?
Move from the consumer stocks to the producers. The consumer stocks you look at with a more jaundiced eye than the industrials which everyone has been down on for a while. Of course there’s a valuation consideration too.
How long will the pattern last?
I think we’re in the worst of it now, but we could see repercussions from this out 5 years or more.
- Your First Move For Tuesday July 7th
- Monday's Web Extra
- Adult Entertainment: Gaming The Sweet Spot
- Pops & Drops: U.S. Steel, Sprint...
- Fast Forecast: S&P, Oil, & More
- Rising Star Stock - Monday July 6th
- Will G8 Summit Move Markets?
- Stocks Pull Higher In Late Surge
- Fast Trades Into Monday's Close
- Halftime Report: Can Markets Advance Without Oil?
______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to .
Trader disclosure: On Aug 18, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (AAPL) And Is Short (AAPL) Calls; Najarian Owns (CSCO) Call Spread, (SNDK) Call Spread, (ZMH) Call Spread; Macke Owns (MSFT), (UUP), (WMT), (COST), (DIS), (ATVID); Finerman Owns (GS)
Finerman's Firm And Finerman Own (GLNG); Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (VCLK); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY), (BBT), (COF): NBC Universal Is The Parent Company Of CNBC
Data is a real-time snapshot *Data is delayed at least 15 minutes