Of Men and Bubbles

"Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one."

---Charles Mackay, author of the 19th-century classic Extraordinary Popular Delusions and the Madness of Crowds, 1841

Don't Fear the Bubbles is a well written piece on the little touted benefits of financial bubbles and the speculators that drive them. Such bubbles are ultimately indicative of a rapid transformation of markets in times of greatest change.

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Larry Kudlow whacks John McCain on his energy stand as well he should. Then Larry reiterates the economic issues of utmost concern in the November's presidential election in Friday's IBD:

"Public worry No. 1 is now oil, jobs and the economy, with the inflationary woes of the U.S. dollar right underneath. The candidate who can connect with these issues will win in November. But so far neither Barack Obama nor John McCain is dealing with the new political reality."

So where is Mr. Hope and Change in all this? It appears he doesn't have a clue. The only hope and change he offers are the tired, ineffective policies of more and greater government intervention and the demonization of the true drivers of free markets and expansive economies.

Here's hoping John McCain will take Kudlow's advice and begin to address the #1-3 economic issues troubling America: oil, jobs, the economy and the dollar.