The markets recovered from its lows on Thursday following a report that the Obama administration is working on a plan to stem foreclosures.

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Dow Jones Industrial Average

fell 6.77, or 0.09%, to 7,932.76, while the

S&P 500

rose 1.45, or 0.17%, to 835.19. The


added 11.21, or 0.73%, to 1,541.71.

Dylan Ratigan, the moderator of


's "Fast Money" TV show, referred to a


report that said that the administration is working on a plan to provide a mortgage subsidy to homeowners fighting foreclosure.

Karen Finerman said the move could benefit banks if they had marketed down these loans. Guy Adami said the approach sounds like the right way to go about stemming the tide of foreclosures.

Pete Najarian said the report offers a little more clarity - something that was missing earlier in the week when the markets trashed the Geithner bank rescue plan and the $789 billion economic stimulus package.

Finerman again expressed her concerns about the commercial real estate market, where the debt markets are falling apart and equities are sliding.

She said there are "so many things going wrong at once," including mounting vacancies, declining rents, strip mall closures, declining valuations and huge debt refinancing problems. "The biggest risk in being short (in this market) is that a lot of people are short," she said.

Ratigan invited Transportation Secretary Ray Lahood to talk about what the stimulus will do to help the ailing commercial real estate market and small businesses. Lahood said stimulus will provide $40 billion that will put people to work in good-paying jobs building roads, bridges, rails and trains.

Ratigan asked Lahood what the stimulus had to offer for the banking and real estate industries. Lahood said President Obama would get to those areas after he signs the stimulus package. He also said it would take 120 days to get the $40 billion out the door to the states to use.

Ed Yardeni, president of Yardeni Research, was pessimistic about the latest efforts by the administration to stem foreclosures with a mortgage subsidy plan. He said the plan needed to be much bigger. When Finerman asked how big, Yardeni said he would take the entire $789 billion stimulus program that he said is being spent on "cats and dogs" and focus it on a mortgage refinancing program.

Yardeni said the administration has to focus on the housing problem and suspend the mark-to-market accounting rules. He said he does not have a lot of confidence that Washington is "getting this right."

Instead, he said Washington runs the risk of ongoing deflation or inflation, if the


has to step in purchase Treasurys to fund the deficit. In that situation, he told the panel gold could possibly double in price.

In a segment called "Survival of the Fittest," Ratigan asked the panelists to name their "fittest" stocks. Adami said he liked

Jefferies Group

(JEF) - Get Report

. Najarian mentioned


(AAPL) - Get Report

because of its strong cash position, low P/E multiple and a new iPhone that will be selling for under $100. Macke liked


(HAS) - Get Report


Jon Najarian came on the show to talk about some restaurant stocks that have a huge short interest that could explode if those investors are wrong in their bets and are forced to cover.

He said that's what happened to

Buffalo Wild Wings


, which was up 34% in trading today and 14.7% year to date. He's also keeping an eye on

PF Chang's China


, which is -8% year to date and a short interest of 31%.

On the retail side, he noted two high short-interest stocks:


(CMG) - Get Report



(ARD) - Get Report


In the final trades, Macke was for

Research In Motion


. Adami liked


(VIA) - Get Report

. Finerman liked



. And Najarian was for

Freeport McMoRan

(FCX) - Get Report


"Check out

"'Fast Money'Portfolios of the Week" on Stockpickr every Thursday.