Karabell: Where a Market Bull, Economy Bear Is Putting His Money

I agree with all he has said, its great for capital and investors but it sucks for most of the rest of the population. Wages and income for most Americans are dropping, not in large amounts but dropping all the same. Business isn't winning, it has won and most Americans are going to be poorer for it. Having said that, I believe we need to learn from the "capitalists" and investors and mimic them. We need to save and invest carefully as I don't believe we will ever have a tax code that treats wages equally with investment income. If we want to live well in the future we need to save and invest, reduce debt or better yet get rid of debt, and quit spending on "wants" we really don't need. I now the "paradox of thrift" will kick in, but we really have no choice if we want to live well in the long run. Jobs are going overseas and productivity will continue to improve even as it destroys many American's lifestyle who have worked hard but not saved. The economy is really going global and its going to continue this way. The only way Americans win in the long run is as investors, not as workers only. Our traditional safety nets of private and public pensions are being destroyed and the type of safety nets most Europeans have will never be allowed here.

I agree with DTT who wrote "its great for capital and investors but it sucks for most of the rest of the population" - that's what the author was hinting at.

If you don't see a huge surplus of labor - then you are blind. Start by listing all the products and services that you can afford to buy - but can't find anywhere - and wish someone was producing for you to buy. Look at some of the newest products that Americans are buying - iPods and iPads - all made in Asia with $1.50 per hour workers and zero American labor - and it will be $1.50 per hour labor for flat screen TVs in 2012 as production shifts from Korea and Japan to China. But there are still 400 million underemployed Chinese workers who intend to move from farms to factories in the next few decades. If you don't believe that wages and benefits will be crushed from an oversupply of labor - based on the law of supply and demand of labor - then you don't know basic economics. If you haven't noticed that all the increase in wealth in this country in past 2 decades has gone to capital investments - that income from labor has declined right alongside middle class wealth - then you haven't been paying attention.

we probably have an excess of unskilled labor and need educated modern workers,but how can we get them now without waiting 20 years? DC and wall st don't know how bad things can get and don't want to know;they're too busy with their own futures and wealth not realizing that you can't separate the workers from the bosses like in 1910.If the wealth gap is too great,you get exploitation,violence,oppression and a kind of slavery.I guess the bosses think they can leave with their wealth and move to a safe haven if it gets so bad in the US. Answers are coming due and the public will ultimately demand no less. I give this bad situation another year or two before an explosion or riots in US? Then,another commission to determine the causes and remedies. Many may die of neglect or civil unrest,crimes. All of us better wake up to our urgent financial and social problems pdq so we can still save the situation.Everyone has to make bucks to live and prosper,efficient taxes are necessary,profits are required and kids must attend school and study. Maybe a few public hangings of the drug lords,billion dollar thieves,heinous criminals would help to deter high crimes? Justice and fairness for all;a lot to ask.

Karabell was hemming and hawing all around it - without really saying it - that the US middle class and probably the global middle class is doomed. Globalization and technology are putting the screws to American labor - American middle class labor in particular. The demand for American labor is sinking, and the law of supply and demand for American labor will lead to a much greater concentration of wealth for those with capital and much greater poverty for everyone else. We had better figure out some way to distribute wealth (and food) when capital is earning nearly all the income and labor is irrelevant and earning crumbs.

If the Tea Party and GOP think government handouts are large now, wait a few years. 80% of the country will be needing government assistance. We are approaching something probably never seen before in human history. Even worse than czarist Russia!

Capital will have a hard time making much money when few can afford to buy anything. The wealthy are going to have to start paying for government, the middle class is tapped out after thirty years of a stagnant median income.

Macke has it right. As long as the Fed pumps, the market goes up. Can't fight the Fed. It works the other way too. When the Fed tightens, the market goes down about 18 months after the initial move. So the question is: When will the Fed tighten. Keep an eye on inflation, especially food and crude oil (gasoline), even though the Fed lies and say they don't watch that. THAT is where the political pressure will come for a tightening.

Zach... embarrassingly prolific use of latest buzzwords ...but utter lack of any clarity or ability to make a clear and definitive point. Every comment was hedged. Every sentence had a "but" in the middle.

It's a tough spot to be in - The United States, Europe and the rest of the developed world that has sources of discretionary income largely enable and fuel the trend of cheap labor in the East,South America etc. However, without our Demand there would be no need for Supply and thus no jobs for these overpopulated poverty stricken nations. The United States and Europe, are becoming more and more service based economies relying on the imports from manufacturing countries for our everyday needs. This puts these manufacturing countries in a powerful position to come together and charge more for their products and thus generate more revenue for their workers. This will never happen because there is too much greed and competition on the part of the suppliers. Someone is reaping the benefits of this emerging inelastic power-shift in the manufacturing industry and it's not the workers and its not our fault - Its the political hierarchies within the foreign supply chain that don't redistribute their earnings fairly to the workers. Some corporations just look at their bottom lines. So the moral of this story is to get a degree and start fueling our new Service Based Economy. Or just sit back and become a hedge fund manager or day trader and make it rich capitalizing on the hopes and fears of society at large. Crazy Times....

Farmings is great. Cattle, pork and chicken prices are up....grain prices are up...capital $$ is way up for famers. Ethanol is money in the Bank for farmers!! We, farmers continue to get gov. taxpayer subsidies!! This a great market!
Keep paying your taxes and sending the same spenders for ag. industry to Washington. Willie Nelson...we need farmAide ha ha.
bob

"When the Obama job stimulus program ends, Zach is looking for a resumption of a decline in the unemployment rate. Ironically, one of America's strongest sectors, industrial tech, is increasing efficiency AND exacerbating the employment problem."

What?

Whom ever tells the most lies does not win anymore !!

QE2 is an illusion. But his opinion that inflation is not a serious factor belies his otherwise, seemingly, rational deductions. Take appropriate action for the downfall, now. This is Pie in the Sky rationale.

As an investor for 40 years, I would rather listen to player than one with no skin in tthe game who reports on the players

I like Zach. Good guy. One of the few good souls in this business.

He just brushed aside the Fukishima accident - it ain't over and it could just be a complete catastrophe for Japan. Japan is the 3rd largest economy in the world, if they suffer big losses what's it going to do to the world economy? The developed world's economies are already teetering on the edge of bankruptcy but don't worry, be happy .Buy cloud computing and routers folks. Yechh!

In the world of capital where there are not much job growth and main streets get poorer and poorer. The rich get richer and thing calm down after the crisis.

Well "Calm down?" For how long?

Wait and see until the revolution and social unrest hit the rich and their investments. See how much of their wealth will be still intact by then.

How absurd!!!!

Please don't try to blame long term systemic unemployment on "being built around technological advance." That may be a part of it, but.......

.......The policies and ideological beliefs of Obama and his henchmen are the primary reasons we are not going to dig ourselves out of this hell-hole for some time to come. Not until we have a regime change and someone (along with supporting staff) enters the White House who truly believes in America, its borders, language and culture and can make the country feel good about itself and its image. No apologies to anyone for who we are.

"THE BUCK STOPS HERE," said the sign on Predident Harry Truman's desk. It is the same for our socialist, America hating, Imam Obama, and he could give a big @#$%. He loves the chaos and misery. Just listen to him speak and his words. No sincerity and compassion at all. Saul Alinsky must be musing (somewhere) "MISSION ACCOMPLISHED" with respect to Obama.

Nothing new here. A lot of people have been predicting that technology will reduce demand for the low-skilled, which will create the educated upper class and the poor class. What none of the TV pundits will own up to is that the poor also have more children. For example, the US Hispanic population filling so many of the menial labor jobs, average over 5 children per family.. And the idiot Republicans and tea bag-brains want to kill family planning, thereby making a terrible situation even worse...

Yes, but purple is the in color for ties

Didn't know where Macke had gone since Fast Money! It's terrific to see such a smart guy back with, this time, his own show!!!