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That "other fact" would be greed. "Many individuals grew suddenly rich. A golden bait hung temptingly out before the people, and, one after the other, they rus

That "other fact" would be greed. "Many individuals grew suddenly rich. A golden bait hung temptingly out before the people, and, one after the other, they rushed to the tulip marts, like flies around a honey-pot. Every one imagined that the passion for tulips would last for ever, and that the wealthy from every part of the world would send to Holland, and pay whatever prices were asked for them. The riches of Europe would be concentrated on the shores of the Zuyder Zee, and poverty banished from the favoured clime of Holland. Nobles, citizens, farmers, mechanics, seamen, footmen, maidservants, even chimney sweeps and old clotheswomen, dabbled in tulips." [1] https://en.wikipedia.org/wiki/Tulip_mania#Mackay.27s_Madness_of_Crowds https://en.wikipedia.org/wiki/Tulip_mania#Mackay.27s_Madness...

silotis 9y ago
A rather important bit from the Wikipedia page to keep in mind when reading that quote: "His account was largely sourced from a 1797 work by Johann Beckmann titled A History of Inventions, Discoveries, and Origins.[11] In fact, Beckmann's account, and thus Mackay's by derivation, was primarily sourced to three anonymous pamphlets published in 1637 with an anti-speculative agenda.[36] Mackay's vivid book was popular among generations of economists and stock market participants. His popular but flawed description of tulip mania as a speculative bubble remains prominent, even though since the 1980s economists have debunked many aspects of his account." Also see the "Modern views" section. Basically, as far as anyone can tell Mackay's account of tulip mania is mostly bullshit.
- femto113 9y ago
  I picked that phrase for its narrative effect, not its literal truth, but if you need more authoritatively documented example of mass stupidity and greed leading to a speculative bubble we don't have to look back 400 years... https://qz.com/114753/meet-the-family-who-lost-100000-when-the-beanie-baby-bubble-burst/ https://qz.com/114753/meet-the-family-who-lost-100000-when-t...

silotis 9y ago

A rather important bit from the Wikipedia page to keep in mind when reading that quote: "His account was largely sourced from a 1797 work by Johann Beckmann titled A History of Inventions, Discoveries, and Origins.[11] In fact, Beckmann's account, and thus Mackay's by derivation, was primarily sourced to three anonymous pamphlets published in 1637 with an anti-speculative agenda.[36] Mackay's vivid book was popular among generations of economists and stock market participants. His popular but flawed description of tulip mania as a speculative bubble remains prominent, even though since the 1980s economists have debunked many aspects of his account." Also see the "Modern views" section. Basically, as far as anyone can tell Mackay's account of tulip mania is mostly bullshit.

femto113 9y ago
I picked that phrase for its narrative effect, not its literal truth, but if you need more authoritatively documented example of mass stupidity and greed leading to a speculative bubble we don't have to look back 400 years... https://qz.com/114753/meet-the-family-who-lost-100000-when-the-beanie-baby-bubble-burst/ https://qz.com/114753/meet-the-family-who-lost-100000-when-t...