Fear of 'catastrophic' market crash rising...

From our "gee, things are just swell" file, CNBC reports:

In an unprecedented move, the number of investors fearing a catastrophic stock market crash is rising even with the stock market at 2 ½ year highs.

The unusual dislocation comes from two distinct reasons: a lack of trust in the U.S. financial markets following the so-called Flash Crash last May and the collapse of Lehman Brothers in 2007.

.. snip ..

In the latest survey in December, almost 75 percent of respondents gave it at least a 10 percent chance of happening. That’s up from 68 percent who gave it a 10 percent probability last April, just before the events of May 6, 2010.

Paranoia or reasonable concern?

Given the events of the last few weeks, and the history of the stock market over the last decade, I think it's reasonable...