If Anyone Doubts That We Are In A Stock Market Bubble, Show Them This ArticleMichael Snyder It would be one thing if stocks were soaring because the U.S. economy as a whole was doing extremely well. But we all know that isnt true. Instead, what we have been experiencing is clearly artificial market behavior that has nothing to do with economic reality. In other words, we are dealing with an irrational financial bubble, and all irrational financial bubbles eventually burst. And as I wrote about yesterday, the way that stocks have moved so far this year is eerily reminiscent of the way that stocks moved in early 2008. The warning signs are there if you are willing to look at them. The first chart that I want to share with you today comes from Doug Short. It is a chart that shows that the ratio of corporate equities (stocks) to GDP is the second highest that it has been since 1950. The only other time it has been higher was just before the dotcom bubble burst It sure looks like a bubble to me. In order for the corporate equities to GDP ratio to get back to the mean (average) level, stock prices would have to fall nearly 50 percent. If that happens, people will be calling it a crash, but in truth it would just be a return to normalcy. This next chart comes fromPhoenix Capital Research. The CAPE ratio (cyclically adjusted price-to-earnings ratio) is considered to be an extremely accurate measure of the true value of stocks When the CAPE ratio is too high, that means that stocks are overpriced and are not a good value. And right now the CAPE ratio is the 3rd highest that it has been since 1890. That only times it has been higher than this were in 1929 (we all remember what happened then) and just before the dotcom bubble burst According toWolf Richter, in the first quarter of 2015 corporate revenues are projected to decline at the fastest pace that we have seen since the depths of the last recession This next chart I want to share with you shows how the Nasdaq has performed over the past decade. Looking at this chart alone, you would think that the U.S. economy must have been absolutely roaring since the end of the last recession. But what is really going on is rampant speculation. Some of the tech companies that make up the Nasdaq are not making any profits at all and yet they are supposedly worth billions of dollars. If you cannot see a bubble in this chart, you need to get your vision checked For example, Chinese stocks are up nearly 80 percent over the past nine months. Meanwhile, the overall Chinese economy is growing at the slowest pace that we have seen in about 20 years. Right now, we are in the calm before the storm. We are right at the door of the next great financial crisis, and most of the people that work in the industry know this. And once in a while they let the cat out of the bag. For example, consider what Hans-Jrg Vetter, the CEO of Landesbank Baden-Wrttemberg in Germany, had to sayduring one recent press conference What Vetter is telling us is what I have been warning about for a long time. Another great stock market crash is coming. It is just a matter of time. This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here. 