Dylan Ratigan hosted CNBC's "Fast Money" Thursday night. He started the show with a discussion on comments from U.S. Senator Richard Shelby, who said that Congress doesn't have an agreement on the proposed bailout plan. Jeff Macke says he feels "not good" about the market, and he advised viewers to "back-up" and let the lunatics running the asylum do what they are going to do.

Karen Finerman said the bailout plan is very important, and the futures are trading lower off of Shelby's remarks. Pete Najarian says the bailout plan has to happen either tomorrow or before Monday to save the markets. Guy Adami mentioned that the other problem in the markets right now is the slowing economy in the U.S. and abroad. "That problem will not be solved by the bailout plan. I wonder if Sen. Shelby is setting up John McCain to come in as the white knight," he added.

Ratigan asked the traders how they plan to manage their risk as they set up for either outcome from the proposed bailout. Finerman said she is almost entirely sold out of her retail sector positions. She told viewers she covered some of her short position in the

iShares Dow Jones US Real Estate

(IYR) - Get Report

.

Image placeholder title

Next, Ratigan asked the traders what the market will do if the bailout plan doesn't come to a conclusion before the weekend. Najarian says something will get done over the weekend, because we have a holiday approaching. He said the market will trade lower tomorrow if we don't hear anything positive tonight from the White House.

The traders moved the discussion to the bank stocks and the proposal by the government to take stakes in any bank they help bailout. Adami says he doesn't have an issue with the government taking warrants in the weak banks. Najarian said the big banks that are gathering assets are going to win in the end along with the government.

Republican Peter King of New York joined the traders to discuss the bailout deal. King says Congress is very close to getting the deal done and he said he wouldn't read too much into what Sen. Shelby had to say. "It's our responsibility to show that we are doing this to bail out Main Street and not to bail out Wall Street," he added.

King said that if we can find a workable way to recapture the huge bounces of the people who were in charge of

Fannie Mae

(FNM)

,

Freddie Mac

(FRE)

,

AIG

(AIG) - Get Report

, Bear Stearns and Lehman Brothers, we will do it.

Credit Market Turmoil

Mike Darda, chief economist at MKM Partners, joined the traders to discuss what borrowing costs really are. He said the credit markets look as bad as they have ever looked. He said the divergence of the stock market and the credit markets in the opposite direction of what has normally been seen is scary. "The rate that banks lend to each other at vs. what the government has to pay is at levels last seen in October 1987. And that wasn't a good month for the stock market," he said.

Barry Ritholtz, CEO of Fusion IQ, joined the traders to discuss the reason we got into this financial crisis. Ritholtz explained that throughout human history, credit and finance are based on the borrower's ability to repay. "In our current case, the borrower's ability to repay became irrelevant, and the lenders' ability to repackage and securitize the loans is where we are at today," he added.

He says that in order to solve the problem, we need to inject capital into the bad banks and let them recapitalize and get solvent again. "This is going to be the biggest bailout in the history of planet Earth. Let's get this right the first time instead of having to come back six months later and say we messed it up," he said.

Earnings and Dividends

Ratigan pointed out that

Research In Motion

(RIMM)

plunged 18% in after-hours trading after the company cited increased costs for product rollouts. "You have to think that somewhere Wall Street plays into this with the reduction of jobs, it has to hamper sales," Najarian said. Adami says that at some point RIMM becomes a value stock, but not yet.

Shares of

McDonald's

(MCD) - Get Report

jumped higher in after-hours trading following the news it will increase its dividend. Macke says McDonald's is the best company in the world. "They are stealing money from

Starbucks

(SBUX) - Get Report

," Najarian added.

Final Trade

Macke picked McDonald's. Adami likes

Johnson & Johnson

(JNJ) - Get Report

. Finerman recommended

Philip Morris

(PM) - Get Report

. Najarian selected

Burger King

(BKC)

.

This article was written by a staff member of TheStreet.com.