Saturday, November 14, 2015

The Crash Of The Tulip Mania Bubble...!

We have all seen how something can suddenly catch on and begin a maniacal frenzy to own them. Remember the Cabbage Patch Dolls, for instance?

Well, believe it or not, the beautiful Tulip became the center of such a craze at one time. Many people were ruined when the Tulip bubble burst.

Tulip Mania


Credit: Gierth/ullstein bild via Getty Images

Tulip flowers have often been used to symbolize love, but in 17th century Holland, they came to represent doom for many overzealous investors. The Dutch fell head over heels for tulips shortly after the lilies were first introduced to Europe in the mid-16th century. Tulips became a powerful status symbol, and nobles and middle class admirers alike began scrambling to get their hands on rare specimens. By the 1630s, Tulip marts had sprung up in city centers, and bulbs were traded in the same way as modern stocks on Wall Street. A single tulip bulb often sold for the same price as everything from a carriage and a pair of horses to 1,000 pounds of cheese.

Tulip mania continued unabated until February 1637, when the market collapsed after a few of the bigger players decided to sell out. Prices plummeted, and a brief panic ensued as investors raced to dump their stores of lilies. “Substantial merchants were reduced almost to beggary,” wrote Charles Mackay, who later helped popularized the story of the tulip craze. “Many a representative of a noble line saw the fortunes of his house ruined beyond redemption.” The Dutch government formed a commission to clean up the tulip mess, but the economy sank into a minor depression in the years that followed.

Who would have ever thought that something like a flower, no matter how pretty, would cause an economic collapse. Certainly not the folks in the government, I suspect.

Coffee in the kitchen again this morning, OK?

6 comments:

thecottagebythecranelakethree said...

Isn't it strange that we never learn from history? Then it was tulips now it's house bubbles or banks making other bubbles that sooner or later burst. Here we are waiting for the house market to burst and when it does lots of people will be poor for the rest of their lives.

Christer.

deborah harvey said...

read the book 'the black tulip'. story about the cruelties done to get that rarest of tulips. not so rare now.

JO said...

No we never learn Christer. Back a few years ago we got hit big and all the homes that people lost still sit empty but now the building boom is on again and talk of another failed economy is on the way.

HermitJim said...

Hey Christer...
I don't think we ever learn from history. Greed seems to drive so many of the decisions we make anymore.
I appreciate you coming over this morning.


Hey Deborah...
Haven't read that particular book. Sounds like a good one! I just never thought of the flowers being at the center of something like this.
Thanks for stopping by today!


Hey Jo...
Sure is hard to keep up with all that's going on , but it seems as though things are following the path we took long ago. Man never serems to learn, probably never will.
Thanks fore stopping by today, sweetie!

Dizzy-Dick said...

That can easily happen when you put all your eggs in one basket.

HermitJim said...

Hey Dizzy...
You would think folks would be smart enough not to do that anymore, but I reckon some people never learn...then or now!
Thanks for dropping by today!