Dylan Ratigan hosted CNBC's "Fast Money" Monday night. He kicked off the show with a discussion of the market's negative action toward the news of the U.S. government's bailout plan to inject $700 billion into the financial sector.
Karen Finerman said there is a lot of concern on Wall Street because nobody knows how the government is going to implement the plan. She says there is a sneaking fear on the street of what happens if it doesn't work. "Is there anything else they can do?" she added. Tim Seymour says the dollar move last week wasn't real because it was just the deleveraging of the "carry trade."
Ratigan moved the talk to news that
received approval from the
to change their status to bank holding companies. Pete Najarian said Goldman and Morgan will now get their growth from gaining deposits. He says Goldman Sachs went down because it hasn't moved more in the direction of becoming bank like Morgan is.
Guy Adami said he is sad about what is happening at Goldman. "I don't think they can frankly exist as the way we use to know them," he said. Finerman says Goldman needs to buy a bank like
Ratigan asked the traders what their expectations are for the rest of the week. Najarian said he expects volatility to remain above 30%. He says the market will go up or down 200 to 300 points a day all week. "You will see overreactions in both directions all week," he added.
Ratigan moved the discussion to commodities such as crude oil and gold. Adami said there is a clear flight to hard assets. He says don't pile into gold here because it will go down as fast as it went up. Seymour says gold will continue to catch a bid.
Next, the traders talked about some large buybacks at
. Finerman explained that the Microsoft buyback will be accretive to earnings.
She mentioned that
all have enough cash to do stock buybacks. Seymour pointed out that on a total basis, buybacks are down 56% from last year.
Ratigan asked the traders if health care is the place to hide in this tough market. Najarian pointed out that $100 billion in sales for patented drugs are coming off patent protection from 2009-2012. He says this will play right into the generic space for names like
Jeffrey Harte, an analyst at Sandler O'Neil, joined the traders to discuss the future model of investment banking. He says the good news for the i-banks is that they will now be regulated by the lender of last resort. He says the
will be much tougher on leverage. "There is still a lot of trouble and problems left to come in the housing market," he said.
Harte says the housing market is not going to bottom in 2008. Harte says the bigger issues for future problems will come from the regional banks and not the investment banks as they "mark-to-market" their holdings.
Short New York
The traders discussed some ways to play the demise of Wall Street and loss of jobs, specifically in the New York area. Finerman said she shorted
because it has a lot of exposure to New York City real estate. She advised viewers to look at shorting
iShares Dow Jones US Real Estate
Jon Najarian joined the traders to discuss the ban on short-selling. He said he disagrees with the ban. He explained that a lot of investors were driven out of the market with the ban. "If you're going to put in a prohibition for short-selling, then it needs to be everyone," he said. "Otherwise you pretty much get a rigged game." He says the
should get rid of the ban and bring back the uptick rule and enforce it. Najarian also highlighted some unusual options activity in
. He said the options volume on AIG was "explosive" today.
was among the most actively trades stocks on the
What's In The Charts
Carter Worth of Oppenheimer joined the traders to talk about technical analysis. He explained that technical analysis measures the emotional state of the market and it's the most accurate measure. Worth said he likes the chart on
because the stock has been trading up while the market has been collapsing. He says the stock has great breakout potential. He says the market will go dead for the next couple of months with no new lows or meaningful rebounds.
Finerman said to play the corporate buybacks with Microsoft. Najarian picked
. Adami said to stay defensive with
Johnson & Johnson
This article was written by a staff member of TheStreet.com.