My 'Fast Money' Recap

NEW YORK (Real Money) -- Last night, I was on "Fast Money" with Melissa Lee, Tim Seymour, Guy Adami, Pete Najarian and Karen Finerman.

The message I presented last night was that the liquidity rally (in place for several years) was over and that it's time for Mr. Market to meet Mr. Gravity!

Let's go to the tape!

I started off by expressing the view that the U.S. monetary cliff (and the conclusion of quantitative easing) at June's end has suddenly grown more conspicuous with the publication yesterday of the FOMC minutes and it should scare investors in a lot of risk asset classes.

In response to a question by Tim about how large the consequences are , I said that when economies stumble (as they did in 2008-2009), public fiscal and monetary policy comes to the fore and defends against an acceleration of economic and corporate profit weakness, inhibiting natural price discovery. This is now being reversed, and absent more easing, investors are now going to experience a natural price discovery in stocks, bonds and gold -- with all those asset classes moving lower in price.