Deutchbank will be just the first of many before its over. Thanks for the article. I agree it will take time, but time is running out even for US banks that bet big on derivatives, high yield and junk bonds, oil, and the stock market. Banks should abide by Glass Stegall willingly for their own sanity and safety. However, CEO's greedy for bonuses put their whole bank at dire risk systematically. They should not just be fired, they should be banned from the industry en mass.

The Euro is so far in with bad debts to bad governments and their banking sector that there is really no way out. Printing is a cheap trick, but is not sustainable. Regardless, their leaders only care about today and hate Germany's attempt to brink the Euro region out of Wonderland and into reality which will hit them harder that China the second the US goes into their cyclical downturn.

Indeed there are lots of real economic indicators pointing down and its clear the Fed realizes the fact yet continues to openly lie to try to support the market. Since when is our central bank suppose to openly lie? They need to be openly reprimanded for misleading the public into loss, however, that's exactly what they did the last recession. So I doubt anything will happen the next recession although it will be more clearly their fault this time than last time. It may also be much worse given they have destroyed the traditional avenue of stimulating the economy after a downturn which is lowering interest rates.

The sad fact is the baby boomers are getting massively screwed by the Federal Reserve trying to punish capitalists from holding money and trying to make money from having it. Their new solution is to make it a cost to hold money and undermine capitalism as they clearly support planned economies and socialism. Of course it helps when they are the creators of money in such a system through either QE or negative interest rates which is like a tax on money which they will accumulate.

There is nothing good lying ahead for the baby boomers and I think they know it. The next generation doesn't have the population to support the entitlement they currently have and the Federal Reserve has stripped them of all their alternative income methods besides very risky ones like an inflated stock market and high yield junk bonds. Many more will go broke in the next downturn and many more after that.

Apple is outsourcing their software to India and trying to import tons of Indians to replace their highly paid programmers. There is a lot more going on under the hood of Apple and it's all about devaluing its programmers and workers for profit by misusing work visas. Despicable.

At least Amazon is more honest about its performance overseas than Apple is taking into effect the weakening currencies around the world. Currency devaluation hurts not just earnings but cash holdings overseas which is why Apple chooses not to follow standard accounting procedure which would make it obviously clear haw bad its policies to hide its assets from US taxation is.

Expect the downturn to continue to migrate from overseas to home. Amazon is getting punished for stating reality before others admit it. The global economy is in a full swing downturn and no multinational company will go unaffected.

Those betting on Amazon are 3. The first one believes Amazon has unlimited growth and will engulf the entire market over time. The other is a trend follower who will ride any stock up regardless of fundamental. And the last is those dumb enough to follow banks and analysts who support the stock for their own gain.

Amazon is a great company. It will do well. That is not the issue. However, there is a time when expectations are obviously well overstated. Amazon isn't alone in this camp. Thus making the stock valuation look more reasonable than it would otherwise.

Amazon has risen astronomically and consistently for years thus making chartists and many others feel safe. Just like any constantly upward trending slope, it is easy to take it for granted and assume a measure of safety that isn't there while the downside gets worse and worse. This is especially true with growth stocks because it gets harder to grow with size. Apple is coming face to face with this and Amazon will as well.

Last, most people betting on Amazon are betting on it potentially without even knowing it in their mutual funds etc. Like the previous paragraph, the more dumb, stupid, passive money that is swayed by the sirens constantly saying everything is alright, the less alright the valuation will be. Amazon's valuation is worse because its growth slope is slowing and profitability is nowhere close to supporting the stock price. Those that say its better value because its now profitable are lying to you. To support Amazon's price Amazon needs to grow substantially for decades to come and/or increase margins by a substantial amount. Clearly they lose their edge raising pricing and also kill their growth. Thus leaving with the clear and precise argument that the apple is not as good as the skin makes it out to be. The only good thing is that we know Amazon is far from a bad company. It's just that its prospects are beholden to rational market forces which will eventually bring the price down to real market forces as well.

Hopefully for current shareholders, this will occur after they increase their profitability substantially.

Powerful market statistics that people have been avoiding as they keep following the Fed and market makers siren call that there's more loosey goosey stuff going on that distorts the market and magically puts money into bankers and traders pockets. Sadly, increasingly this will not even pay for those who follow behind trying to get some of the anti-capitalistic insider gains like QE and zirp rates.

The main reason the indexes have held up was due to mergers, stock buybacks, and dividends and earnings stoked by higher and higher levels of debt. All of these are clearly not long term solutions and actually weaken the companies engaged in them. Given large corporations were better able to use these to artificially stoke their share prices, we can see a clear difference between them and the broader scope of publically traded market shares that increasingly are doing worse and worse.

Usually major downturns down end until at least the growth stocks implode.

The big issue isn't the stock market but the economy and if it's turning towards a downturn. For those unaware, a downturn is necessary to start a new cycle and fix ailments of the past. Those at the Fed who want to end market cycles might as well say they want to end capitalism. Cycles are a natural function of a free market. Manipulating them exposes your economy to big trouble.