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Clear Skies Ahead on Wall Street?

Did the Fed, in one fell swoop, cure Wall Street of all its credit crunch ills? CNBC's Charlie Gasparino joins the panel to discuss whether it’s safe to buy the brokers.

The big brokerage houses can be ranked from “screwed up” to “more screwed up,” Gasparino said. But if one of the more screwed up ones – Lehman Brothers (LEH) – just posted good earnings and the stock had its best day since 2001, it indicates that the worst might finally be over, he said. But he still views Bear Stearns (BSC) as a problem area.

While most of the financials have their risk spread out and are well diversified overseas, Bear only has about one-fifth of its credit operations abroad, Gasparino said. That is worrisome. But he also said that the Fed’s aggressive move was essentially a bailout of the brokers. If market volatility does continue, he thinks Goldman Sachs (GS) will be the one that prospers from its efficient trading shop. Goldman would also benefit from a rebound in M&A activity, he said.

The bottom line? The Fed’s move was aggressive enough that people are saying its time to buy the brokers no matter what the rest of the earnings reports look like, Gasparino said.

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Trader disclosure: On Sept. 18, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC); Pete Najarian Owns (XLF); Pete Najarian Owns (GS) Options; Pete Najarian Is Short (ETFC); Finerman's Firm & Finerman Own (HD); Finerman's Firm Owns (ASD), (AA), (COP), (TXI), (TGT), (MO), (NMX); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (WMT)

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