Sub-prime meltdown occurring

Sub-prime mortgage companies are getting hit hard this week after announcing growing defaults among borrowers, especially those who chose no verification of personal financial information. Stay away from this sector. The ripple effect is causing the blue-chip financials major pain. Bargains are showing up among the large banks, such as Bank of America (BAC), as well as Wall-Street firms such as Lehman Brothers (LEH) and Bear Stearns (BSC) whose exposure to subprime lending is minimal compared to other financial firms.