Laughing Through the Collapse
From CNBC.com, this interesting chart, which graphs the amount of laughter -- as reported in the minutes -- during meetings of the Federal Reserve Open Market Committee:
The laughter kept building, even as the housing crisis got worse:
History shows they may have been laughing a bit too hard.
In what may be the strangest market indicator ever, a blogger found that the amount of laughter recorded in the official transcripts of Federal Reserve Open Market Committee meetings from 2000 to 2006 correlates almost perfectly with the rise in housing prices taking place at the time.
A particular series of side-splitting meetings by the central bank in 2006 marked the very top of the housing bubble.
It comes from a site called The Daily Stag Hunt. The research is theirs. Of course, FOMC minutes aren't released until weeks after the meeting, so it's impossible to use this new indicator -- the hilarity reverse index -- to make any money. It's probably enough to realize that if they're laughing now, you won't be soon.
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Comments:
Sep '10
Re: Laughing Through the Collapse
But they were crying on the inside.
Dec '10
Re: Laughing Through the Collapse
Rob,
I am including a link to a letter to the editor I wrote to the Palm Beach Daily News. My letter was printed this Sunday. It pertains to your topic.
Regards,
Jim
Jan '11
Re: Laughing Through the Collapse
Would be interesting to compare this chart against, say, 1994 to 2000. If doom makes them giddy, what about boom?
Jul '11
Re: Laughing Through the Collapse
The sides of my over financed house are just splitting with that fanny slapper.
Re: Laughing Through the Collapse
Apparently the Fed transcripts simply say "[Laughter]." If they did true verbatim transcripts, I suspect they would look something like this:
Muahahahahaha... Muahahahahahaha... Muahahahahahaha.. [laughter dissolves into spluttering cough].
Aug '11
Re: Laughing Through the Collapse
Let us not forget how hilarious President Obama finds our current economic state. (Mr. President, "Are you punch drunk?")
Jan '11
Re: Laughing Through the Collapse
What prompted each session of laughter?
Come to think of it, though, the difference doesn't really matter. Each answer is equally depressing.
Dec '10
Re: Laughing Through the Collapse
This is the largest case of the abuse of OPM in history. You might ask why Obama doesn't think of it as his money too? There is only one answer and Dinesh D'Souza knows what it is. Obama just doesn't think of himself as an American. This is a deep psychological problem. Of course, we're all going broke waiting for him to get over his psychosis.
Edited on January 31, 2012 at 7:54pmMay '10
Re: Laughing Through the Collapse
In this case, laughter is NOT the best medicine.
Aug '10
Re: Laughing Through the Collapse
But you've got to laugh to prevent yourself from crying.
Oct '10
Re: Laughing Through the Collapse
Nervous Laughter ?
Sep '10
Re: Laughing Through the Collapse
So unless I've somehow misunderstood, the FOMC were laughing as the bubble built, not as it collapsed, and the title is altogether wrong.