What In The World Is Happening To The Nasdaq?Michael Snyder Those stocks have gone to absolutely incredible heights, but now they are starting to fall. Some are blaming insider selling, and without a doubt the smart money is starting to flee the stock market. Just check out this chart. Others are blaming low expectations for first-quarter earnings or the tapering of quantitative easing by the Federal Reserve. But whatever is causing this decline, it is starting to get alarming. The Nasdaq just experienced its largest three day fall since November 2011. No stock can resist gravity forever. What goes up must eventually come down. This is especially true for stock prices that become grotesquely distorted. We have been living in another dotcom bubble, and it was inevitable that it was going to burst at some point. The following is how one financial industry insider described the carnage that we have seen on the Nasdaq over the past few days And of course it isnt just the Nasdaq that has been seeing declines over the past few days. On Monday, some of the biggest names on the Dowalso fell precipitiously This recent decline has many analysts groping for answers. Some believe that it is simply a rotation as investors leave growth stocks that have become overvalued and move into safer, more traditional stocks. Others are pointing their fingers at the Federal Reserve In fact, some believe that the really big stock market decline will happen later this year when the Fed starts to wrap up quantitative easing completely Yet others point to the fact that we are now moving into earnings season, and it is being projected that corporate earnings will come in at very poor levels. In fact, it is being estimated that overall earnings for companies in the SP 500 for the first quarter will be down 1.2 percent. So what should we expect to see next? Whether it happens this month or not, at some point a massive stock market correction is coming. In recent years, the financial markets have become completely and totally divorced from economic reality, and that is a state of affairs that cannot last indefinitely. Many have compared the current state of affairs to 2008, but to me what is happening right now is eerily reminiscent of 2007. The Dow soared to record heights quite a few times that year, but there were constant rumblings of economic trouble in the background. Stocks began to drop steadily late in the year, and 2008 ultimately turned out to be an utter bloodbath. I believe that what is happening right now is setting the stage for another financial bloodbath. I truly believe that we will look back on this two-year time period and regard it as a major turning point for America. And as I have written about previously, we are in far worse shape as a nation than we were back in 2008. We have far more debt, the too big to fail banks have a much larger share of the banking industry, the derivatives bubble has gotten completely and totally out of control, and our overall economy is far weaker than it was back then. In other words, we are now even more vulnerable. When the next great financial crisis strikes us, it is going to be absolutely crippling. Now is not the time to get complacent. Now is the time to get prepared, because time is running out. This article first appearedhere at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogsThe American DreamandEconomic Collapse Blog. Follow him onTwitter here. 