Talk of Gun Laws Spurs Irrational Exuberance

NEW YORK ( TheStreet) -- If you've been to a Wal-Mart ( WMT) lately, or to your local sporting goods retailer, or gun shop, you may have noticed that there are some pretty bare shelves in parts of these stores; namely where the ammunition, and/or guns are usually found.

I've witnessed it myself on several occasions, and heard similar stories from others. The current run on guns and ammo that occurred as a result of fear of stricter firearms laws in this country is unprecedented. The tragic, horrifying mass shootings we've experienced recently led some politicians, including the current administration, organizations, and private citizens to demand stricter gun laws and regulations, some of which have already gone into effect, in New York, to name one.

Whether or not you are a supporter of the Second Amendment, the irony in all of this is quite clear. When the citizens of a free society believe that their rights are in jeopardy, in this case gun ownership, there is a run on that which they fear will be taken away. During the Depression, there were runs on banks as depositors feared there savings would be lost. Now there's a run on guns and ammunition.

All of the rhetoric of proposed tougher laws and restrictions has achieved one of the very things that some gun opponents fear most. America is arming itself like never before. This will continue until either the issue fades or broader legislation is actually passed which appears unlikely. It's a basic issue of supply and demand. Right now, the supply can't keep up.

If tomorrow, there was chatter about making donuts illegal as part of some healthcare initiative, you better believe there would be a run on Krispy Kreme ( KKD), Dunkin ( DNKN) and Tim Hortons ( THI) stores. The stocks, of course would be crushed, at least in the short-term, but there would be doughnut frenzy. Then the fervor would die down, once the public at large realized that there are simply not enough legislators that would vote to outlaw doughnuts.

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