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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One highlight of the book is the section on "Famous Market Manias" that included the Tulip Bulb Mania of 1634 to 1637, the South Sea Bubble, the Nikkei 225 Index, and the current Dow Jones Index, showing the short-term irrationality of markets.
Prechter is one of the leading proponents of the idea that the current stock market boom is not only a bubble that must burst, but a mania on the order of the well-known Tulip Bulb Mania of 163437.
Perhaps the largest and most famous of all was the Dutch tulip bulb mania.