Tulip bubble myths

statsman

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I'm prompted to post this having read yet another reference to the great Dutch tulip bubble on a thread here. You know the story: 17th century Dutch folk went mad paying huge prices for tulips, the bubble burst, hundreds went bankrupt, and the Dutch economy went down the toilet.

Well, not quite.

In fact, “There weren’t that many people involved and the economic repercussions were pretty minor,” Goldgar says. “I couldn’t find anybody that went bankrupt. If there had been really a wholesale destruction of the economy as the myth suggests, that would’ve been a much harder thing to face.”

That’s not to say that everything about the story is wrong; merchants really did engage in a frantic tulip trade, and they paid incredibly high prices for some bulbs. And when a number of buyers announced they couldn’t pay the high price previously agreed upon, the market did fall apart and cause a small crisis—but only because it undermined social expectations.
And:

“Some of the stuff hasn’t lasted, like the idea that God punishes people who are overreaching by causing them to have the plague. That’s one of the things people said in the 1630s,” Goldgar says. “But the idea that you get punished if you overreach? You still hear that. It’s all, ‘pride goes before the fall.’”

Time for a different exemplar?
 


Verhofstadt

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I'm prompted to post this having read yet another reference to the great Dutch tulip bubble on a thread here. You know the story: 17th century Dutch folk went mad paying huge prices for tulips, the bubble burst, hundreds went bankrupt, and the Dutch economy went down the toilet.

Well, not quite.



And:




Time for a different exemplar?
The tulip tale is popular due to it's apparent simplicity.

The Wall Street Crash and the Great Depression would be more relevant to modern economics
 

silverharp

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John Law and the Mississippi bubble is quite an interesting one
 

Betson

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I think Tulips are a good investment right now , but people need to move fast and get in on the ground floor.

All the ballsy guys are doing it.
 
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Accidental sock

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I always suspected the Tulip Bubble was fake news....

My suspicion was first aroused when I was told it happened in 'The Netherlands'

Pfffft.....where Peter Pan came from???????
 

Mitsui2

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I always suspected the Tulip Bubble was fake news....

My suspicion was first aroused when I was told it happened in 'The Netherlands'

Pfffft.....where Peter Pan came from???????
No, Sock, you misheard - Peter Pan came from Nethernetherland!
 

gleeful

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BBC's "In out Time" did a good podcast on the South Sea Bubble a while back.
 

statsman

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I always suspected the Tulip Bubble was fake news....

My suspicion was first aroused when I was told it happened in 'The Netherlands'

Pfffft.....where Peter Pan came from???????
Affectionately know as 'the arse end of nowhere'.
 

EUrJokingMeRight

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Ironically people not invested in creditable blockchain technology/applications are driving the Tulip bubble of today. For they are the Alpha Tulips.
 

publicrealm

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There is no magic investment formula - it all boils down to hard work and a steady hand.

The tulip bubble was based on emotion and greed rather than solid evidence-based research.

Sciūrī, by contrast, will have their ups and downs - but have a solid base - and that's where the intelligent ballsy guys are going.
 

NYCKY

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I always suspected the Tulip Bubble was fake news....

My suspicion was first aroused when I was told it happened in 'The Netherlands'

Pfffft.....where Peter Pan came from???????
Well it's not just the Nether lands but really the Nether Regions.
 

Accidental sock

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Well it's not just the Nether lands but really the Nether Regions.
You're the second person to criticise The Netherlands on this thread.

I will have you know I was there in the 90s, and did an informative architectural tour, then toured the most renowned coffee shops, and finished by riding large blue anteaters over the sunset on Jupiter.

The nation was, and presumably, is delightful.
 

statsman

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You're the second person to criticise The Netherlands on this thread.

I will have you know I was there in the 90s, and did an informative architectural tour, then toured the most renowned coffee shops, and finished by riding large blue anteaters over the sunset on Jupiter.

The nation was, and presumably, is delightful.
:)
 

hammer

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Its all just greed.

Slow steady growth is what you need in any business class.

Like Irish property.
 


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