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Dylan Ratigan hosted CNBC's "Fast Money" Thursday night. He began the show by discussing the breaking news out of the Wall Street Journal that all the potential buyers of Lehman Brothersundefined are seeking government backing.

Jeff Macke says Lehman should just end the misery and said the bailout won't help anyone. Pete Najarian said the preferred yields on

Merrill Lynch


are suggesting that the stock is about to fall big. "If I owned the stock, I would be very nervous and buy puts to protect the position," he added.

Joe Terranova said the market doesn't like the leadership changes among financial companies like

American International Group


, Lehman Brothers,

Washington Mutual


and Merrill Lynch. He explained that the street doesn't know what strategic direction these mangers plan to take these companies in.

He also pointed out that

Goldman Sachs Group


closed higher today, which shows that investors believe it has good leadership.

Ratigan switched the talk to the oil complex. Terranova said the refiners are the one trade in the energy space that you can make money right now. He recommended investors play the sector with




Frontier Oil








. Najairan pointed out that the airlines were ripping today.

Ratigan asked the traders what other stocks will benefit from falling oil prices. Macke mentioned that



is breaking out higher. He also feels that



is good enough for a trade here.

Ratigan moved the discussion to the gold sector. He pointed out that gold has gone down since the

S&P 500

hit its lows on July 15. Terranova explained that as long as the dollar is rallying, there is no reason to be long gold. "I would wait for a pullback on the dollar here before buying," added Macke.

Next, Ratigan brought up the strength in the trains, ag and coal names today. Adami mentioned



, which reported a strong quarter today He advised viewers to buy these names on the dip. Adami said most of the hedge-fund sellers are out of



, and the stock was upgraded today by Morgan Stanley.

Terranova said to look at

Burlington Northern


. "Despite the massive liquidation in the commodity stocks, the stock never broke the 200-day moving average," he said. He says the rails will be a great play for the fourth quarter.

Najarian pointed out some unusual options action in the

Semiconductors ETF


today. He explained that traders bought 45,000 January 25 calls on the SMH. He thinks the action is bullish for




Texas Instruments



Applied Materials



Ratigan mentioned that

Bristol-Myers Squib


said it would stick with its $60-a-share bid for

ImClone Systems


. Najarian said the pharma industry is beginning to consolidate. He said his best trades in the sector are ImClone and



. Adami recommended




Safe to Swim?

Douglas Cliggot of Dover Management joined the traders to discuss where stocks go from here, with so many financial companies in turmoil. Cliggot is famous for calling the market crash in 2000. He says the investment banks have a flawed business model. He explained that the investment banks have grown their balance sheets very rapidly, but they didn't grow their capital base in-line with their balance sheets.

"As a result, we ended up with tremendous leverage ratios," he said. He feels credit growth will be slow or nonexistent with significant deleveraging. Cliggot says the U.S. is in a recession. He advised viewers to get into non-cyclical sectors such as health care stocks and consumer stables

Ignore The Financials

River Twice Research President Zach Karabell joined the traders to discuss how news on the financials is obscuring everything else in the market. He explained that the media hype around the financial sector has helped investors miss the news on






. He said both companies are renegotiating their prices up 20% for 2009. He also said that



is benefiting from people in the gulf recycling their petro-dollars for high end jewelry. "Don't be a hero in the commodity names," said Macke.

Gartman on the Dollar

Strategic investor Dennis Gartman joined the traders to discuss the dollar. Gartman said it's a bull market for the dollar and it's going to continue to be one. He explained that in a bull market you can have one of three positions: You can be really bullish, just bullish or neutral. He said he wouldn't be a buyer of the dollar tonight; instead he would wait for a pullback to 142 vs. the euro.

This article was written by a staff member of