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These things can go on longer than 2 years > Tulip mania (Dutch: tulpenmanie) was a period during the Dutch Golden Age when contract prices for some bulbs of t
by lovecg 1y ago
These things can go on longer than 2 years
> Tulip mania (Dutch: tulpenmanie) was a period during the Dutch Golden Age when contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels. The major acceleration started in 1634 and then dramatically collapsed in February 1637.
> 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 artisan.
- yieldcrv 1y agoDespite being oft cited, that’s probably the worst poster child of bubbles by the way It was a spot commodities futures contract bubble due to government regulation change in the futures market alongside border crisis in a neighboring country, so rational supply constriction It ended due the bubonic plague ending the speculators so we don’t know what would have happened
- tim333 1y agoAlso it may not have been as silly as people make out. The Dutch still have a tulip industry with 2,600 varieties grown over 60,000 acres. It may have been worth spending ~$1m on a bulb if it was superior and you could breed from it and sell a lot.
- yieldcrv 1y agoAnother reason it wasn’t silly at all I don’t think any commodities bubbles were irrational bubbles or good examples of irrational exuberance. Even the beanie babies one was rational until a seemingly permanent supply constriction was alleviated to the surprise of everyone. So far I’ve narrowed it down to credit bubbles as being actually irrational, like the railroad bonds, and south china sea bubble, over leveraging in real estate market and derivatives with poor accounting of underlying assets And yet tulips and beanie babies are the ones most cited
- forkeep 1y ago[dead]
- forkeep 1y ago[dead]