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Doug Kass Rejects Investment ‘Toxic Cocktail’

Quantitative easing will fail and slow the economy long-term, Seabreeze Partners President Doug Kass said Tuesday on CNBC.

“I think that the investment environment is growing more dangerous. The world’s economies, the profit outlook are weakening. Just the time where sentiment is expanding and so are valuations, so that’s a potential toxic cocktail to me,” he said on “Fast Money.”

(Read More: Doug Kass: Beware the Dreaded Triple Top)

Kass doubled down on his bearish outlook, even as the stock market continued to build on gains.

“We have this global monetary put, that this total unanimity will keep the market elevated. Many of the same people said in May when the market was around 1,110 on the S&P that it couldn’t go up.

Now, a global monetary put is a shield that protects risk assets, especially stocks, but it’s only a protective put is more easing has an impact on the real economy by improving aggregate demand, which would be expressed in more hirings, expanded capital spending, rising consumer spending and rising housing market,” he said.

“I don’t see that happening. In fact, I can see ‘ludicrous speed’ QE becoming a net drag on the economy.”

Trader disclosure: On Sept. 18, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Mike Murphy is long WFC; Mike Murphy is long TGT; Mike Murphy is long FB; Mike Murphy is long FDX; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in GS; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in GOOG; Jon Najarian is long call spreads in BRCM; Jon Najarian is long call spreads in PHM; Jon Najarian is long call spreads in DHI; Jon Najarian is long call spreads in LEN; Jon Najarian is long call spreads in FFIV; Jon Najarian is long call spreads in MPEL; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long GLUU; Jon Najarian is long STSI.

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