'Fast Money' Recap: Capital Ideas

Dylan Ratigan hosted a special CNBC "Fast Money" show Friday night live from Washington, D.C. He began the show with a discussion of President-Elect Barack Obama's speech. Karen Finerman said Obama made it clear that nothing bad that happens before Jan. 20, 2009, is his fault. Jeff Macke said it was a disappointing start from Obama because he didn't explain how he plans to fix the nation's problems. Tim Seymour said the market was expecting a lot from Obama, but by the time he was done speaking, the S&P 500 fell 17 points.

Ratigan asked the traders how they deal with allocating capital in an environment that is filled with "imperfect information." Pete Najarian explained that Wall Street has never liked unknowns. He says "the unknown is what will keep the volatility at higher levels." Najarian said the stock market rally today was led by the agriculture, steel and coal stocks, but the financials didn't move at all.

Macke pointed out that Goldman Sachs Group(GS Quote) and Citigroup(C Quote) closed on their lows.

Ratigan asked the traders what they thought about the news that General Motors(GM Quote) might go bankrupt by the end of the year. Adami said the $7 billion burn rate at General Motors is unacceptable. Finerman says, "What is the plan, and what is the bailout going to do for them?" Macke explained that the bailout money is contingent on General Motors making environmentally friendly cars. Seymour says "the problem with General Motors is they are taking advantage of a crisis to go throw the kitchen sink in."...