Earlier this week, we discussed the amount of laughter in FOMC meetings as a sign that the Fed was not fully cognizant of the coming financial storm.
Today’s chart adds another component to this, overlaying Fed laughs with Case Shiller residential real estate price index, via Elliot-today. Perhaps the best way to consider this is as a function of mass psychology: The Fed appears to have become complacent, apparently relaxed and self satisfied with their handling of the collapsing of the DotCom/Tech/Telecom bubble after 2,000.
Sure, there is some form fitting here as the chart is adjusted 6 months to make them correlate. Regardless, it is the sort of coincidence that would rarely be noticed in real time, and is terribly significant in hindsight.
I wonder what the Fed is laughing about now . . .