Tulips: The First Worldwide
Money Bubble!
Executive Summary about Tulip
Bubble by Nic Faitos
The
financial bubble that came about was caused by tulip bulbs. It took place way before the
bubble in the stock market, the housing market or any other bubble and
subsequent bubble that you may know of.
It was tulip mania or tulpomanie to the Dutch. This was a
period in the Dutch Golden Age during which contract prices for bulbs of the
recently introduced tulip reached extraordinarily high levels and then suddenly
collapsed. At the peak of tulip mania, in February 1637, some single tulip bulbs sold for more than 10 times the annual
income of a skilled craftsman. It is generally considered the first recorded
speculative bubble (or economic bubble).
The term
"tulip mania" is sometimes used metaphorically to refer to any large
economic bubble.
All we want
is tulips in a vase to enjoy them all season long! They are commercially available as cut
flowers from September to May. In the off-months you can get them, but the
quality is not great and they are pricier than at their peak season (March,
April and May).
Tulip Mania - The Original
Economic Bubble
Executive Summary about Tulip Bubble by Russell F Moran
The real
estate bubble of the early 2000s followed closely on the heels of the dot-com
bubble of the late 1990s. We came to look at rising real estate values as a
given, almost an entitlement. Until the music stopped.
In 1637 in
Holland, tulips - yes the flower - became the object of a speculative frenzy.
This became known as Tulip Mania or Tulipomania. At one point the
price for a single bulb exceeded the annual income of a skilled craftsman by 10
times.
And, as with
any speculative bubble, the prices eventually crashed. Although it has become a
subject of debate among economists as to just how severe the tulip mania was,
the story nevertheless stands as a metaphor for speculative excess.
These trying
times are less about injustices and predators and victims, and more about a
nation of people who didn't want to hit the slow button. We were all too busy
enjoying the party that we didn't notice the house was on fire.
So while the
newspapers and TV specials talk about the injustice of this mess - and a story
about Mr. and Mrs. Jones from Dubuque who are facing the loss of their home
makes for compelling copy - the truth is a lot more complicated.
Related Post:
No comments:
Post a Comment