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Credit Crisis: Still Cloudy?

Alan Greenspan said Thursday that the worst of credit crisis is over. Is it time to celebrate… or is Greenspan the first to arrive at this party?

Former Federal Reserve Chairman Alan Greenspan said on Thursday that the worst of the credit crisis is over, according to sources who attended a speech he delivered in New York.

Greenspan said while the current credit crisis was the worst he had ever seen, the worst was over as low interest rates meant companies could borrow more cheaply long-term, the sources who attended his speech at the Alternative Public Strategies Conference told Reuters

Steve Liesman, CNBC Senior Economics Reporter, sees the situation a little differently. Looking at charts of 2-year swaps and mortgage spreads “I think we’re halfway between normal and chaos.”

“The trend of diminishing risk and better pricing could be over for now,” adds Liesman. “I think it’s artificial because there’s $300 billion dollars of Federal Reserve money backing the fixed income market. We’ve got to wait until private capital comes back in and replaces the Fed before we’re at normal.”

I think things are dramatically better, counters Karen Finerman. At least better than March 30th when all the financials reported.

Next Week's Trades #2

To see the charts used in Steve Liesman’s analysis please watch the video.

To see the charts used in Steve Liesman’s analysis please watch the video.

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Trader disclosure: On May 9, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Adami Owns (C), (GS), (INTC), (MSFT), (AGU), (BTU), (NUE); Najarian Owns (AAPL), (BKC), (TSO), (XLF); Najarian Owns (AA) Calls, (BID) Calls, (BUD) Calls, (C) Calls, (MSFT) Calls, (YHOO) Calls; Macke Owns (ATVI), (MSFT), (INTC); Finerman Owns (GS); Finerman's Firm And Finerman Own (KALU), (HD); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns (MSFT), (TSO), (VLO), (PLCE); Finerman's Firm Owns (YHOO) And (YHOO) Call Spreads; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); WWE Programs Air On Networks Of NBC Universal, The Parent Company Of CNBC