Trading a New Reality

Forget the free market. With the Fed offering cheap money and putting up its monster balance sheet, we’re looking at a brave new world on Wall Street. How do you trade this unprecedented era of Fed intervention?

Guy Adami is looking at the best-of-breed in banks. US Bancorp , with a portfolio shockingly devoid of subprime exposure coupled with a nice dividend yield is a strong buy here, he said.

Tim Seymour would take that argument to the regional banks, many of which are still holding up nice balance sheets. And the GSE’s like Fannie Mae , Freddie Mac and Sallie Mae are now “amped up” after the Fed created a fundamentally different environment for them by making the cost of money much lower.

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Trader disclosure: On Mar. 18, 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 (INTC), (YHOO), (EMC); Najarian owns (AAPL), (AMR), (BBBY) Puts, (C), (COP) Calls, (CSCO), (JEF) Calls, A Neutral Put Spread In (LEH), (MS), (MSFT), (TSO), (USB) Puts, (YHOO), (XLF); Seymour Owns (AAPL), (BX), (CSCO), (F), (INTC), (MBI), (MER), (MSFT), (SBUX), (TMA), (TSO)