Jim Cramer came out with bearish comments on a number of financial stocks on CNBC’s “Stop Trading!” show Friday. He said bad news out of Downey Financial (DSL) could spill over to the rest of the financial sector. Downey announced a nine-fold increase in bad loans today. The company also said that one-seventh of its assets were non-preforming. Cramer said that Washington Mutual is horrible. He also cast doubt on Bank of America’s (BAC) decision to buyout Countrywide Financial (CFC). “Bank of America is now the ultimate toxic waste pit,” he said.
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