'Fast Money' Recap: Capital Ideas

Ratigan questioned the trades on how they plan to invest assets with the knowledge that the economy is going to slow and that we are going to see tremendous job losses. Seymour said the market has priced in tremendous weakness earnings and commodity weakness in the emerging markets. He pointed out that a lot of emerging-market companies are trading at cash levels. He told viewers to look at ArcelorMittal(MT Quote) which is down 80% and is trading at 3 times next year's numbers.

Najarian said investors should stay clear of the emerging markets. He says "look at engineering stocks like Fluor(FLR Quote), KBR(KBR Quote) and Foster Wheeler(FWLT Quote) for the long term."

Macke said 2008 will go down in history as the year long-term investing has died as a thesis. He says to "stay on the sidelines, or take advantage of the volatility." Finerman said that if you want to make a bet on ArcelorMittal, then hedge it with the United States Oil Fund(USO Quote). She says "if Mittal trades down, then oil will trade down."

Ratigan reported that Korean automaker Hyundai Motor is in talks with the private-equity firm Cerberus about buying all or part of Chrysler. Adami says "forget about Chrysler and Cerberus."

Stimulus Time

Keith Hennessey, assisted to the president for economic policy joined the trades to talk about the possibility of another economic stimulus package. He said he doesn't see another stimulus packaging happening. He explained that what we need right now is to get the credit markets going again and implement the $750 billion TARP plan. He says "we need to focus on immediate problems like the financial institutions, not raising taxes and getting free trade agreements done."

Richard Brown, FDIC chief economist joined the traders to talk about how to keep people in their homes. He said the FDIC is moving proactively to help modify troubled mortgages. He says "right now we have a crisis where the foreclosure problem is getting worse and not getting better." He explained that we need to get in front of the foreclosure problem by modifying loans to make them more affordable, so it will relieve the downward pressure on the housing market.

Jon Najarian joined the crew to discuss how Obama can gain the stock market's trust. He said the market liked what it heard from Obama today. He mentioned that Obama's economic team is a "dream team." He says "Obama will use the group of 17 as a sounding board, rather than just floating trial balloons." Najarian said Larry Summers will be the next secretary of the Treasury. Adami said it will be Timothy Geithner.

Final Trade

Jon Najarian picked Ameriprise Financial(AMP Quote). Macke reiterated Burlington Northern Santa Fe(BNI Quote). Seymour selected Anheuser-Busch(BUD Quote). Adami went with Greenhill(GHL Quote).

Finerman said she is short Vornado Realty Trust(VNO Quote). Pete Najarian said to buy Energy Conversion Devices(ENER Quote) on a pullback.