The banks, restaurants and retail stocks should be on fire this time of year. Instead, they are downright toxic, Jim Cramer said.
"They are houses on fire, and there is no letting up in the flames, even as the averages rebounded hard today," the "Mad Money" host said.
As the quarter winds down, Cramer compared each group's progress this year to where investors expected them to go not long ago.
With the expectation that the Federal Reserve would raise interest rates several times in 2016, the banks were supposed to make a fortune. Instead, only one hike came last December and the subsequent rate rise never happened.
The European banks are also a disaster. London banks finally found their footing, but had core franchises obliterated by the Brexit referendum. Deutsche Bank was in a league of its own, as the Justice Department requested $14 billion for its role in the mortgage crisis, and the bank has only $5 billion to $6 billion in legal reserves.
"Deutsche Bank is in dreamland where it somehow believes things are all hunky-dory, despite relatively low reserves and versus their potentially very expensive legal problem," Cramer said. "Deutsche Bank has historically been totally clueless about the American way of justice when it comes to banks."