Bet on Bernanke?

Did the Fed avert a crisis Monday or did it just delay the inevitable sell-off?

Bill Fleckenstein, Pres. of Fleckenstein Capital, joins the panel for this conversation. He’s also the author of “Greenspan's Bubbles: The Age of Ignorance at the Federal Reserve.” Following is a synopsis of his main points.

It seems to me that the real estate bubble has burst, says Fleckenstein, and it left bad debts in its wake.

Think of the real estate market as a housing ATM that kept the economy going. That’s gone, now.

We have a credit crisis, a dollar crisis, a liquidity crisis and we appear to be going into recession, he says. We’re still early in this process. People who are trying to find a bottom, don’t really understand the scale of the problem.

So how does it play out?

The outcomes at this point aren’t knowable, replies Fleckenstein. But the Fed isn’t fixing the underlying problem and they’re not fixing the economy (by dropping interest rates.)

What’s the trade?

Buy puts if you’re long stock, counsels Pete Najarian.

Or buy Lehman , adds Joe Terranova. I’m not worried about them.

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Trader disclosure: On Mar.17, 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 (YHOO), (INTC), (EMC); Pete Najarian Owns (AAPL), (C), (CSCO), (ETFC), (MS), (MSFT), (XLF), (YHOO); Pete Najarian Owns (COP) Calls, (GS) Calls; Pete Najarian Owns (LEH) Puts, (XLB) Puts; Pete Najarian Owns (MF) And (MF) Puts;