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Earlier this week, we considered the amount of laughter in Federal Open Market Committee meetings as a sign the Fed wasn't fully cognizant of the coming financial storm.

Today's chart (via Elliot-today) adds another component to this, overlaying the Fed's laughter with the Case-Shiller residential real-estate price index. Perhaps the best way to examine the contrast is as a function of mass psychology: The Fed appears to have become complacent, apparently relaxed and satisfied with the way it handled the aftermath of the dot-com/technology/telecom bubble that burst in 2000.

Sure, there is some form-fitting here as the FOMC chart is adjusted 6 months to make the two 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 ...

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(Barry Ritholtz writes about finance, the economy and the business world for Bloomberg View. Follow him on Twitter @Ritholtz.)

To contact the author on this story:
Barry L Ritholtz at britholtz3@bloomberg.net