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Best Case Scenario Buys

Tuesday, 23 Sep 2008 | 6:54 PM ET

When the market comes back private equity guys like Steve Schwarzman appear ready to pounce. However, CNBC’s Melissa Lee reveals on Fast Money that he’s not quite ready to buy a stake in an investment firm, at least not yet.

According to Melissa Lee, Schwarzman says the loosening of restrictions makes it more attractive than not to invest in one of these firms but it’s still not enough. (Of course terms can always change.)

Best Case Scenario Buys
Assessing the best case scenario as the government considers a financial bailout, with the Fast Money traders.

Meanwhile, billionaire investor Wilbur Ross, who made his fortune by buying distressed companies says that he would like to buy a regional bank. It appears he sees opportunity in industries that have been hurt by the current crisis.

With these Wall Street whales at least thinking about making a move, should you get in too?

Guy Adami

If a deal gets done soon I expect to see some sanity return to the market, says the Negotiator. And once that happens private equity will probably put money to work. If you have the risk tolerance to deal with high volatility now is the time to get long some bank stocks.

Jeff Macke

But that’s the rub, adds the Wolf. If you’ve been kept up by your trades you’re not going to be able to stomach the volatility we’re about to go through. I can’t get long because I don’t know how these companies are going to be valued.

Karen Finerman

I’m also invested in the market, adds the Chairwoman. I think you can be in companies with great balance sheets that don’t have short term credit issues. In fact, now is a great time to buy. I’d much rather be in companies with the VIX at 35.

Pete Najarian

I’d keep an eye on an asset managers like Piper Jaffray , says the Pit Boss. They were up Tuesday when many others stocks in the sector were down. That speaks volumes.

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Trader disclosure: On Sept 23, 2008, 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 (MSFT), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE): Najarian Owns (AAPL) And (AAPL) Collar:Najarian Owns (BBBY) Put Spread:Najarian Owns (MS), Is Long (MS) Puts, Is Short (MS) Calls:Najarian Owns (WB) Put Spread:Najarian Owns (XLF) Call Spread: Finerman Owns (GS); Finerman's Firm Owns (JNJ), (MSFT), (SUN), (TSO), (VLO); Finerman's Firm And Finerman Own (WM); Finerman's Firm Is Short (IYR), (IJR), (SPY), (IWM), (MDY), (COF), (BBT); GE Is The Parent Company Of CNBC

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  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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