People have such short memories. Even though we are repeating so many of the same patterns that we witnessed in 2000-2001 and 2007-2008, most people do not think that another financial crash is coming. In fact, with the stock market setting record high after record high lately, I have been taking quite a bit of criticism for my relentless warnings about the coming financial storm. Many of the comments go something like this: "Snyder, you are a moron! Nothing you say ever comes true. The stock market is going to keep on rocking and Obama is going to lead this country back to greatness. I hope that you choke on all of your doom and gloom." Of course, these critics never offer any hard evidence that I have been wrong about anything. They just assume that since the stock market has soared to unprecedented heights that all of us "bears" must have been wrong.
Professional investors haven't had this little fear about stocks since Ronald Reagan was president.
It was the same year Michael Jackson told us in a song he was "Bad." The New York Giants won the Super Bowl.
And oh yeah ... by the way ... the stock market crashed.
Those that are mocking those of us that are bearish should consider where we stand financially in comparison to previous crash cycles. For example, the derivatives bubble is 20 percent larger than it was back in 2008, the "too big to fail banks" are 37 percent larger than they were back in 2008 and global debt levels are 40 percent larger than they were back in 2008.
Other analysts with much stronger credentials than I am issuing similar ominous warnings about what is ahead for the financial markets.
But it doesn't take a genius to see this.
The median stock today trades at 2.5 times "book" or net asset value. At the start of 2000 it was just 2.2 times.
And as Zero Hedge has pointed out, billionaires such as Sam Zell, George Soros, Stan Druckenmiller and Carl Icahn all seem to be "quietly preparing" for the next crash.
Many have expected me to "change my tune" about the coming collapse because of how well the stock market has been performing.
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