'Fast Money' Recap: Weak Credit Dampens Hopes

Despite some hopeful signs, the markets fell again Monday as credit conditions worsened.

The Dow Jones Industrial Average fell 79.89, or 1.21%, to 6,547.05, while the S&P 500 lost 6.85, or 1%, to 676.53. The Nasdaq fell 25.41, or 1.91, to 1,268.64.

Dylan Ratigan, the moderator of CNBC's "Fast Money" TV show, said there were some promising elements in today's market activity as seen in the ability of some banks like Bank of America (BAC Quote) to raise some money and some active deal making highlighted by the announcement of a $41 billion deal by Merck (MRK Quote) to buy Schering-Plough (SGP Quote).

Pete Najarian said the most impressive thing about today's market was that the banks didn't get clobbered as they have been.

Karen Finerman said the culprit that killed any chance of a rally was the sharp falloff in the credit markets from an increase in redemptions and selling.

Tim Seymour agreed, saying the problem is some $540 billion in debt that needs to be refinanced in the next few months.

Zachary Karabell said the active deal making and signs of life in the IPO market were positive signs. He said that deals are finally being put together with cash and equities instead of "crazy financing."

Finerman said there may be a rotation going on as investors start to move money into energy names such as ConcoPhillips(COP Quote) and Oil Services HOLDRs(OIH Quote).

Najarian noted some of the assets in the energy sector are cheap as he alluded to a $760 million deal by Arch Coal(ACI Quote) to buy a mine in Wyoming from Companhia Vale(RIO Quote).