No. 3 - The Next Shoe To Drop?

Countrywide Financial (CFC), the number one mortgage lender, continues to slide. Thornburg Mortgage (TMA) shares plunged after it delayed its dividend. It seems like anything with the word ‘mortgage’ in it is under fire. But is the meltdown spreading?

It’s certainly not over, Pete Najarian says. He notices a lot of put buying “across the board” including heavy put buying in names like IndyMac (IMB) and E*Trade Financial (ETFC), a name that many had thought was safe. It turns out that E*Trade has $28 billion in mortgage loans that could become an issue, Pete says.

The bottom line is that assets that were considered liquid are drying up quickly, Jeff Macke says. “All bets are off.”

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Trader disclosure: On Aug 14 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money Macke Owns (INTC), (EMC), (ATVI), (DIS); Finerman's Firm And Finerman Own (HD), (KALU) Finerman's Firm Owns (GE), (PHM), (WMT), (KFT); NBC Universal Is The Parent Company Of CNBC