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R.I.P Credit Crunch

Financial stocks rallied as if the credit crunch was over Monday despite the fact that Citigroup (C) said earnings will fall 60% this quarter. After this bullish reaction is it time to start buying Citigroup and the bank stocks?

CNBC’s Charlie Gasparino joins the panel for this conversation. Here are excerpts from what was said.

Does this mean the worst is over?

I think the Street was right and the worst is over, says Gasparino. And I believe Citigroup traded up because when profits are off 60% someone will be held accountable. And that someone will (likely) be Citigroup CEO Chuck Prince.

Gasparino explains that investors he spoke with really want Prince out. "It’s a presumption that Prince’s days are numbered," he says.

Have we reached a point where we know what the liability is with the credit crunch?

It seems so, right now. But, adds Gasparino, investors are still cautious.

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Trader disclosure: On Oct. 1 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 (HAS), (ATVI), (INTC), (SWY); Najarian Owns (GS) Options; Finerman's Firm And Finerman Own (FLS); Web Caller Roger Nesham Owns (DE), (AGU)