Dylan Ratigan hosted CNBC's "Fast Money" Wednesday night. He started the show with a discussion of the panic that swept across Wall Street today. Ratigan mentioned that gold saw its largest one-day move ever in history, and the Dow closed on its lows of the day.
He moved the talk along to breaking news that
is in talks with
and others for a possible merger. Karen Finerman explained that she understands Morgan's need for a low cost deposit franchise. Guy Adami said the deal is interesting, especially since
came out yesterday and said it wasn't interested in buying a bank. "People are desperate, and the financial system is broken," added Jeff Macke.
Adami pointed out that
just became a leader in this game after it moved into
Najarain mentioned that the volatility in Goldman Sachs and Morgan Stanley is outrageous right now. He explained that the crazy action in the stocks shows that investors are concerned and feel that both investment banks have issues. Najarian said he took off some of his short exposure in the
Financial Select Sector SPDR
Ratigan asked the traders which stocks could be one-of-a-kind investment opportunities right now. Adami said to look at
which fell 5% today. He said he also likes
Finerman said she has
on her radar screen because the company doesn't have a lot of debt. Macke says
is a buy at $120. Adami told viewers he would be worried about
Johnson & Johnson
here, because it seems like everyone is in it for a defense play. Najarian also likes Apple at $120 as long as you buy puts for protection. Macke pointed out that
made a new high today.
Sean Egan, managing director of Egan-Jones Rating, joined the traders to discuss what is happening in the credit markets. He said you have to understand what went wrong with the system. "We changed the format for funding mortgages from what we used to do 10 years ago. We have replaced that whole system where we have everybody wanting to do to the deal, which ended up inflating the under lying ratings," Egan said.
He said that in order to change the system we must do the following: Re-establish trust, get transparency, clean up the market in the way derivatives trades are processed, match long-term capital with needs and reform the ratings agencies.
Dennis Gartman, author of
The Gartman Letter
joined the traders to discuss how he traded today. Gartman said the only trade he has on is long
and short the stock market. "I think everyone is flat and nervous," he added.
Gartman mentioned that he took some of his short positions off at the end of the day in the midst of the panic selling. He said the public should keep small positions right now. "These are the most consequentional times I have ever seen," Gartman said.
He explained that these are very difficult times, and it's not just the U.S. -- it's also bad in Russia, Germany, U.K. and France. He pointed out that gold skyrocketed after an article appeared in a Chinese newspaper that said China will have to diminish the use of the U.S. dollar as a reserve currency. "On any $20 or $30 break in gold, I will be a buyer," he added.
Wayne Angell, a former
governor, joined the traders to discuss the balance sheet of the Fed. He told viewers that he is very comfortable with the Fed's actions. "The Fed's balance sheet is infinite and it can expand," he said. Angell pointed out that the Fed is simply acquiring assets during a stressful time, almost like Resolution Trust Co. "In doing that, they're going to make money," he said. He said the Fed doesn't have to turn the assets around quickly, but if it can get a premium for those assets, it will sell.
Main Street Fear
William Larkin, a fixed-income portfolio manager at Cabot Money Management. joined the traders to discuss the huge spike in borrowing costs. He said this is the money market going into Main Street. "Mom-and-pops are running with fear into T-bills and government-backed money market accounts," Larkin said. He says the public is making a mistake by getting into stuff that is too short in duration. He recommended viewers look at government-backed home financing securities.
Adami said to buy
Johnson & Johnson
. Najarian picked
, which is set to report earnings on Thursday.
This article was written by a staff member of TheStreet.com.