Subprime mortgage meltdown continues apace

[ribonucleic]

Stocks plunged Tuesday, driving the Dow Jones industrials down more than 240 points in their second-biggest drop of the year as troubles piled up for subprime lenders.

Investors, bracing for a wilting economy, fled the already deflated subprime mortgage sector while problems increased for lenders such as New Century Financial Corp., Accredited Home Lenders Holding Co. and General Motors Acceptance Corp.'s residential unit. Bolstering the belief that the problems are widespread, the Mortgage Bankers Association reported that new foreclosures surged to an all-time high in the last quarter of 2006.

http://news.yahoo.com/s/ap/20070313/ap_on_bi_st_ma_re/wall_street

[ieffinhatecardio]

There are too many predatory lenders and mortgage companies out there preying on people that should not be given mortgages. From what I've read fudging numbers and outright lying on mortgage applications was an everyday occurence. Many of these subprime notes were doomed to fail.

[BayGBM]

There are still great buys to be had out there in various sectors; check out the chart for FPL (the power company in FL) over the last two years, one year, or even the last 6 months.   

Any other good tips?  Please share.