UPDATE: Greece, Worse Than We Think?

With finance ministers from around the world meeting this weekend to discuss the troubles plaguing Europe, what must you know?

Saturday's activities will start with "a candid discussion on financial sector and the need for coordinated efforts by G7 nations to address the underlying causes of the crisis, " according to Canada’s finance minister.

And the conversation couldn’t happen soon enough.

Credit-default swaps on the debt of Greece as well as Spain and Portugal rose to record highs on Friday amid concerns that European governments will struggle to fund their deficits.

(Remember credit default swaps are like insurance policies used to guarantee debt.)

As we told you yesterday, the situation in Greece may be worse than we think. According to newspaper reports Athens has just discovered more debt – to the tune of $40 billion euro.

Of course, it’s worth noting the government of Greece insists it does not need a bailout and will have no trouble servicing its debt.

In an effort to wrestle the situation under control, the European Union is urging Athens to cut the country's massive budget deficit, but there's already a backlash against the plan. It calls for pay cuts and tax hikes.

Considering these developments, what’s the trade?

Although turmoil in Greece is keeping investors away from emerging markets, when Greece recovers, the fundamentals are so strong in EM that I think investors will likely come back quickly, says BlackRock senior portfolio manager Will Landers. I’d get long Vale and Petrobras now, in anticipation of that. Both quality names.

Looking at currencies, it’s negative for the euro and positive for the dollar, says Brian Kelly of Kanundrum on Thursday's show. I'd get long the dollar.

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Trader disclosure: On February 5th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (AAPL) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (MS), Is Short (MS) Calls; Najarian Owns (PFE); Najarian Owns (QCOM) Call Spread; Najarian Owns (XLF) Calls; Finerman's Firm Is Short (IJR), (IWM), (SPY), (MDY), (UNG), (USO); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leap; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (CVS); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (KFT), (MSFT), (TGT); Finerman's Firm And Finerman Own (WFC) Preferred; Terranova Owns (BAC), (JPM), (OIH), (GOOG), (EMC), (AAPL), (DELL), (MSFT)

For JoeTerranova

Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)

For Will Landers
BlackRock Latin America Fund Is Long (PBR)
BlackRock Latin America Fund Is Long (ITUB)
BlackRock Latin America Fund Is Long (VALE)
BlackRock Latin America Fund Is Long (AMX)

For David Bank
RBC Capital Markets Or Affiliate Managed Or Co-Managed A Public Offering For (DIS), (DISCA) In Past 12 Months
RBC Capital Markets Or Affilaite Received Investment Banking Compensation From (DIS), (DISCA) In Past 12 Months
RBC Capital Markets Is Providing (DIS), (DISCA), (IPG) With Non-Securities Services
RBC Capital Markets Has Provided (DIS) With Investment Banking Services In Past 12 Months
RBC Capital Markets Has Provided (DIS), (DISCA), (IPG) With Non-Securities Services In Past 12 Months

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (GILD)

Other Relevant Disclosures:
Finerman's Firm Owned (PLCE) On 1/29/10
Finerman's Firm Owned (MSFT) On 1/27/10
Najarian Owned (BG) Call Spread On 1/5/10
Terranova Owned (BAC) On 1/19/10

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