Tulip Mania

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Tulip Mania

History's first major asset bubble. Tulips were introduced to Europe from the Ottoman Empire in the mid-1500s and became very popular in the Netherlands. As they grew in popularity, prices for tulips rose steadily, then unsustainably, in the 1630s. Prices suddenly collapsed in February 1637. Interestingly, tulip mania resulted in the creation of a formal futures market and marked one of the first times when contracts were traded without exchanging the underlying asset.
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And before that, there was the Dutch tulip bubble of the 1630s.
And actually, for a lot longer than that: Way back in the 17 th century, there was a tulip bubble - yes, a tulip bubble - where tulip prices soared to such heights, a single bulb could cost a skilled craftsman more than 10 times his annual income.
They should also pay more attention to the new trends and rules of the post-credit crisis world as well a the long history of asset price bubbles going back to the Dutch Tulip Bubble in the 17th century.
If we speak about psychological factor[s], it's interesting that economic bubbles have been a constant reality in human history--going back to the Dutch tulip bubble in the 18th century.
The tulip bubble may be better known, but we have almost no reliable price data for it.
The tulip bubble is one of the great legendary bubbles of all time, but there were just so many tulips that Dutch growers could plant, and there were just so many potential tulip buyers.