Laughing All the Way to the Top: Good Times at Fed Meetings Signaled Housing Bubble - CNBC.com - US Business News - CNBC: It was good times at the Federal Reserve [cnbc explains] five years ago: Low interest rates instituted by then-Fed Chief Alan Greenspan had housing prices booming, the stock market was rising and Fed members were—literally—laughing their way to the...well, central bank.
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.
See original work for more on this and other stories.
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