Lately, some analysts and traders have been predicting there will be another market crash in 2011 and that Wall Street will be once again be exposed to “Insider Trading” scandals, “Ponzi Schemes” and “Fraudulent Companies” making false claims on earnings.

While the ongoing Rajaratnam trial over “Insider Trading” or the saga with Berkshire Hathaway’s David Sokol’s Lubrizoil (Stock Symbol: LZ) trades overwhelm the stock market, investors feel the odds of making a profitable trade is stacked against them which helps explain why mom & pop haven’t piled back into stocks even after a more-than 2-year bull market.

In 1919, Joseph P. Kennedy joined the prominent stock brokerage firm of Hayden, Stone & Co. where he became an expert in dealing in the unregulated stock market of the day, engaging in tactics that would later be labeled insider trading and market manipulation.

During the Roaring ’20s, many Wall Street professionals, and even some of the general public, knew Wall Street was a rigged game with “Insider Trading” run by dominant investing pools. Suffering from a lack of disclosure and an epidemic of manipulative rumors, people believed coat tail investing and momentum investing were the only viable strategies for getting in on the profits.

A stock market crash is a sudden drastic decline of stock prices across a significant cross-section of the market. Crashes are often driven by panic amongst the investors.