'Fast Money' Recap: Crisis Investing

Dylan Ratigan hosted CNBC's "Fast Money" show Friday night. He began the show with a discussion of the U.S. markets' issues with the largest credit crisis in American finance history. Ratigan mentioned that in the overnight session, the futures were "limit down," and there were expectations that the Dow would open down 1,000 points. Jeff Macke joked, "Life is like a singles bar; between 1 a.m. and dawn, no good decisions are made."

Pete Najarian says "there seems to be a level that people are starting to get comfortable with the material, agriculture and energy names." He pointed out that once Potash(POT Quote) hit $60 a share, the stock immediately spiked higher.

Ratigan asked the traders if they are more optimistic or pessimistic about their investment positions than in recent weeks. Karen Finerman said this is the most optimistic she has been. She says "we haven't seen the end of the redemption, but I have been taking back some of my hedges here."

Guy Adami said a company like Ingersoll-Rand(IR Quote) trading at four times forward earnings is "absurd." He also mentioned that he liked the price action in Microsoft(MSFT Quote) today.

Ratigan asked the crew if we will now see the insurance companies beg the government for capital. Adami said yes, we will. He pointed out that Hartford Financial Services(HIG Quote) is interesting from a valuation perspective.

Najarian told viewers to be cautious with JPMorgan Chase(JPM Quote), Wells Fargo(WFC Quote), US Bancorp(USB Quote), Morgan Stanley(MS Quote) and Goldman Sachs(GS Quote). He explained that people in the market are wondering where these banks will get their earnings from, now that the market has digested the government bailout capital.