A lack of detail in Treasury Secretary Timothy Geithner's bank rescue plan doomed the markets Tuesday.

Image placeholder title


Dow Jones Industrial Average

fell 381.99, or 4.62%, to 7,888.88, while the S&P500 lost 42.73, or 4.91%, to 827.16. The


dropped 66.83, or 4.2% to 1,524.73.

Dylan Ratigan, the moderator of


's "Fast Money" TV show, was disappointed in Geithner's plan not so much because of the lack of detail but because it props up a troubled financial system that begs for an overhaul. "We're in a situation where we are trying to support the systems that led us to the collapse. It suggests there is not another alternative," he said.

Ratigan said the policymakers in Washington are trapped into thinking that banks like


(C) - Get Report


Bank of America

(BAC) - Get Report

are too big to fail and are spending hundreds of billions of dollars to support them.

For that matter, Tim Seymour wondered why bondholders shouldn't be also allowed to fail. "They, too, are taking risks," he said.

Pete Najarian said there are good trading opportunities in

Morgan Stanley

(MS) - Get Report


Goldman Sachs

(GS) - Get Report

because they have taken their lumps and are trading at a discount.

Ratigan said a better alternative than the route taken by the Geitner Plan would be in the direction Goldman, Morgan Stanley and smaller banks offer.

Guy Adami said the situation could be turned around if the government would only establish a price for a toxic asset to get the market moving again.

Ratigan asked Bill Greiner, chief investment officer of UMB Asset Management, for his thoughts on Geitner's plan. Like others before him, Greiner said the plan lacked visibility and details on how things are going to work. "It failed to give that spark of enthusiasm," he said.

Greiner said the free market should be allowed to work its magic. He said bankers who know how to run a bank should run banks. He also said some troubled banks need to pay the price and move to the wayside.

Ratigan asked Sean Eagan, of Egan-Jones Rating Co., what advice he would give President Obama in this situation. Eagan said there needs to be a restoration of checks and balances in assessing credit.

He said the federal government needs to inject massive amounts of capital in banks and provide adult supervision.

He also said it's necessary to make the securitization market work to get the desired multiplier effect.

As for Geithner, Eagan said the treasury secretary is heading down the right road. "You just need to have a little patience," he said

Ratigan asked the panelists for trading ideas in this chaotic market. Najarian said he liked


(V) - Get Report



(MA) - Get Report

because they don't face any of the problem of the big banks and are showing continued growth.

Adami said he would look into


(INTC) - Get Report

on the dip on Wednesday. And Macke said he would buy some shares in Morgan Stanley on the dip.

Jon Najarian discussed a "range-roving" trading strategy. For example, with the Vix volatility index moving in the 40-to-50 range, he would buy on the lower end and sell on the upper end. Likewise, he would buy on the lower end of the S&P when it ranges from 800 to 870, and sell on the higher end.

He noted two stocks that offer opportunities to trade on a range. One is

Excel Maritime


, which he would buy at $6 and sell at $9. The other is

Archelor Mittal

(MT) - Get Report

, which he would buy at the low end of the $22- to-$27 range and sell at the upper end.

In the "Rising Star" segment, Najarian touted

Energy Conversion

( ENER) for its outstanding earnings, cautious outlook and $10 a share in cash.

In the final trades, Adami was for Intel. Seymour liked

Platinum Asset Management Limited


. And Najarian liked



"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.