'Fast Money' Recap: A Double-Dip Recession?

The markets retreated again Tuesday on renewed doubts about an economic recovery.

The Dow Jones Industrial Average fell 107.46, or 1.25%, to 8,504.67, while the S&P 500 lost 11.75, or 1.27%, to 911.97. The Nasdaq dropped 20.20, or 1.11%, to 1,796.18.

Melissa Lee, the moderator of CNBC's "Fast Money" TV show, said the Dow has fallen almost 300 points in two days as the bears begin to tighen their grip on the market. She then asked the panel to comment on a CNBC interview with President Obama in which he talked about the regulatory overhaul of the financial industry that he will announce Wednesday.

Tim Seymour was worried about the return of Glass-Steagall Act that was repealed in 1999 and the profitability of insurance companies if that were to occur.

Joe Terranova said he was less concerned about regulatory changes than the growing deficit and the possibility of a double-dip recession, and a so-called W-shaped recovery.

Brian Kelly agreed, saying the recovery has been based on the flawed assumption that "we can borrow at will."

Terranova expressed concerned about another economic metric - today's declining industrial production numbers, which he says indicates a deflationary environment. "If we go below 905 (in the S&P), we're going to have a much deeper correction than we anticipated," he said.

Lee noted consumer names were the second worst performers today. Seymour said retail sector has been hit hard, with consumer credit down $34 billion in past seven months and a 22% contraction in household net worth since the highs of last year.