Initial Claims, the SP500 and Joe Weisenthal

At Business Insider, Joe Weisenthal likes this chart.  The red line is the inverse of unemployment claims filed, it tells who got laid off recently, but its upside down.  Thus, up means good for workers getting jobs. The blue line is the SP500. Like Roger Farmer says, when stocks are up, people keep their jobs.

I have a couple of questions for Joe, however. Joe thinks the third spike is good news.  But the only difference between the third spike and the previous two, is that the third spike has not yet crashed.  But it obviously will! Why is this good news?  Why would any fool jump into the market right now?

I guess my second question is what has been going on before 2000 when the two did not track? That, by the way, is the period in which we were not yet debt constrained, now we are.  It is rather funny that the correlation picks up when we are debt constrained.  Roger Farmer, earn you pay and explain this please.