'Fast Money' Recap: Dec. 29

Gramley liked what the Fed is doing to grapple with the problem, saying it's going in the right direction, and, with the fiscal stimulus package, should succeed.

Gramely said the big worry next year will be deflation, with the drop in the oil and the global economy in decline. He said the Fed needs to be aggressive in managing the balance sheet down. "It can do that by refusing to renew many of the short-term loans it's made," he said.

Lee asked the panel to comment briefly on what she called the Dow Dogs of 2009, including stocks such as Bank of America (BAC Quote) and Citigroup (C Quote), which are sporting high dividends.

Narjarian said it would be "dangerous" for investors to use high dividends as the sole yardstick to measure stocks. He said these companies are going to have to own up to the fact that they should not be paying such high dividends.

Terranova wondered whether Johnson & Johnson(JNP Quote) and McDonald's(MCD Quote) can continue their strong performances in 2007 and 2008 and go for a threepeat in 2009.

Looking past what appears to another troubled year in 2009, Lee asked the panel for their forecasts for 2010. Terranova ventured that energy and natural resources should move higher in the next three to five years as economies reflate and have more need for energy and natural resources.

He expects stocks like Exxon Mobil(XOM Quote) and Freeport McMoRan to fare well.

Arch Crawford, an astrologist-technical analyst, noted that the stars are pointing to a rally in the first half of next year and a plunge in the second half.