'Fast Money' Recap: New Bond Insurer

Light trading ruled the day in the stock market Friday. The Dow finished up 6 points and the Nasdaq closed down 2 points. The crew at CNBC's "Fast Money" reviewed the day's trading, looked back over the year and looked ahead to 2008.

Guy Adami was surprised that the bears didn't knock the market down 200 points with the light volume. He was encouraged that the market was able to hold off any material selling pressure. Pete Najarian liked the action in the Nasdaq stocks especially the strength in the four horsemen. Jeff Macke explained that all we saw on Friday was some jockeying by money managers before the end of the year.

Headline of the Day

Warren Buffett's Berkshire Hathaway(BRK.A Quote - Cramer on BRK.A - Stock Picks) announced plans to start a municipal bond insurer. Finerman declares that this is bad news for MBIA(MBI Quote - Cramer on MBI - Stock Picks) and Ambac(ABK Quote - Cramer on ABK - Stock Picks). Macke feels this move is genius for Buffett and he will kill the competition. Najarian advises waiting for any lift in MBIA and then putting on an option put spread because the stock is in trouble.

(Take a look at the rest of Buffett's portfolio on Stockpickr.com Warren Buffett.)

Word on the Street

Gold traded up 3.3% and the dollar dropped to the lowest level against the Euro since 2006. Adami thinks the dollar will rally in 2008 and he continues to be bearish on gold at the levels. Najarian favors the commodities stocks especially the names tied to coal like Peabody(BTU Quote - Cramer on BTU - Stock Picks) and Joy Global(JOYG Quote - Cramer on JOYG - Stock Picks).

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