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You asked :
Why do some people laugh at Funerals?
Indifference and Decompensation in Pathological Narcissism
The narcissist's guarded detachment is a sad reaction to his unfortunate formative years. Pathological narcissism is thought to be the result of a prolonged period of severe abuse by primary caregivers, peers, or authority figures. In this sense, pathological narcissism is, therefore, a reaction to trauma. Narcissism is a form of Post Traumatic Stress Disorder that got ossified and fixated and mutated into a personality disorder.
Source : Buzzle.com
The word "decompensation" can imply that the identity of the individual being treated is so interwoven with the mental illness that it is hard to distinguish the two. For this reason many individuals with a mental illness do not like the use of this word to describe an increase in symtomatology. It might be more sensitive to simply state that the person experiences an increase in severity and frequency of symptoms.
Source : Wikipedia
You said :
What do either of those have to do with OP's question?
Pathological narcissism is thought to be the result of a prolonged period of severe abuse by primary caregivers, peers, or authority figures.