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Congress On The Clock

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There appears to be momentum toward a new hybrid bailout.

So says Rep. Adam Putnam (R-FL) on “Fast Money.” Our goal is to have something complete by the time the market opens on Monday, he says.

However don't tell that to Senator Charles Schumer (D-NY). He tells us lawmakers are at a bit of an impasse. One of the sticking points involves a proposal from House Republicans to insure rather than buy Wall Street's bad debt. Senate Democrats are only willing to include that remedy as an option. They say going that route should be at the discretion of the Treasury Secretary (who has in the past scoffed at the idea.)

What ever the rhetoric most lawmakers and pundits agree that deal talk is at least, back on track and lawmakers will be talking throughout the weekend until a deal is in place.

The Dow and S&P closed higher on Friday as big bank shares gained in a late rally on just this kind of optimism.

What's Happening Now

Congressional leaders—as well as the Treasury—are going through proposals line by line and may include some elements of a House Republican plan.

Currently the proposal from the White House would:

- Authorize the government to buy distressed debt from private firms,
- Limit pay packages for executives of firms that seek assistance,
- Allow taxpayers to profit if the bailout plan works.

However conservatives Republicans want to see alternate proposals in which:

- Wall Street and not tax payers fund the bailout,
- Private capital and not tax dollars are injected into the financial markets,
- Immediate transparency, oversight and market reform are implemented.

Disagreement Over Reform

“We would all like to see greater long-term reforms including reform of the sophisticated new instruments that no one understood,” adds Putnam. “But there is greater disagreement over the long term reforms than there is over the short term intervention. And we don’t want the short term intervention to be derailed.”

On Fast Money Dylan Ratigan pressed Rep. Putnam for more transparency. Watch the video to see his suggestions and why Dylan’s recommendations could be introduced into the conversation.

How Are You Trading?

For the first time in a while, I hit mute on the TV and just started trading, says Joe Terranova. I bought the SPDR Trust which I think is oversold.

I’m encouraged that the market is rallying on somewhat negative news, adds Tim Seymour. I think the S&P could run as high as 1260.

I didn’t do a lot on Friday, adds Karen Finerman. I just try to find stocks that I think are good long term value and then hedge them.

Do you think Beefsteak Jeb is a good name, because I’m getting ready for the apocalypse, exclaims Jeff Macke. I think Boss Hog shut down the Republican party on Thursday.



What do you think. Tell us now!





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Trader disclosure: On Sept. 26, 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 (MSFT), (WMT); Seymour Owns (AAPL), (EEM), (MER), (MSFT); Seygem Asset Management Owns (VIP); Seygem Asset Management Is Short (RSX); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (MO), (PM), (RAI) ; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Terranova Owns (AAPL), (EOG), (FCX), (FTO), (GS), (KOL), (NOV), (POT), (X), (YHOO); Terranova Is Long Mini S&P Futures; Terranova Owns (AIG) And Owns (AIG) Puts; Terranova Owns (MS) And Owns (MS) Puts; Terranova Is Long Crude Oil

Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.
Phoenix Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (BRE), (CNTY), (CNW), (CLB), (OFC), (DLM), (DRH), (DLR), (EPR), (ESS), (EXR), (AGM), (FL), (GBL), (GNET), (IGE), (LNET), (MAC), (OIIM), (PSPT), (DBC), (DBV), (SLB), (GWX), (SSYS), (SKT), (UA), (BIV), (VV), (BLV)
Phoenix Investment Partners Owns More Than 1% Of Goldman Sachs Financial Square Fund - Money Market Fund
Phoenix Investment Partners Owns More Than 1% Of Seagate Technology Tax Refund Rights

Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

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