'Fast Money' Recap: Dangerous Market

Dylan Ratigan hosted CNBC's "Fast Money" Monday night. He started the show with a discussion of the trading action intraday for the S&P 500 which saw one of the biggest one-day drops ever in market history. He explained that the market traded up off the lows on speculation that all central banks will act together to stop the global meltdown.

Ratigan mentioned breaking news that the Federal Reserve will now potentially look at getting into unsecured lending in the commercial paper market. He said the commercial paper market has dropped $95 billion in the last few weeks.

CNBC's Steve Liesman joined the traders to discuss the breaking news. He said the Fed has talked to market participants to take additional measures to support the unsecured commercial paper market. He says the new measures will most likely involve the Treasury and Fed in some combination. "It's unclear if these measures will involve direct purchases, outright lending or access to the window," he added. Liesman says the Fed has never ventured into this business until now.

Karen Finerman says the Fed is stepping in to try and restore normalcy to the credit markets. "Anyone who has short-term paper is getting fearful that commercial paper markets might be closed to them," she said. Jeff Macke says this isn't a sign of confidence and it's not a solution to the problem. "This is another incremental action, and we aren't doing these things smart," he added.

Ratigan asked the traders how the traded today's dangerous stock market. Pete Najarian said he is holding on to the regional banks because they will have the "opportunity" going forward. He says the big banks will gobble up names like National City(NCC Quote), Wachovia(WB Quote) and Regions Financial(RF Quote). "I would still buy these names through options or with buying the stocks outright," he added.