The First Economic Bubble

[ChemEng]

Given the bubble were are going through now, its always interesting to look back into history for other similar situations. In this case, it was in 1637 with Tulip Bulbs in the Netherlands. Valuation of tulip bulbs got so out of control that there is documentation of 1 tulip bulb trading for 12 acres. Trading Tulip Bulbs was so popular that there were bulb futures markets established in each city in the region to facilitate people's speculation. Here's the wikipedia link that tells the story. Sorry for the geeky reference, but I have always been fascinated with this part of history.

Here's a taste of the details:

Tulip mania or tulipomania (Dutch names include tulpenmanie, tulpomanie, tulpenwoede, tulpengekte, and bollengekte) was a period in the Dutch Golden Age during which contract prices for bulbs of the newly-introduced tulip reached extraordinarily high levels and then suddenly collapsed. At the peak of tulip mania in February 1637 tulip contracts sold for more than 20 times the annual income of a skilled craftsman. It is generally considered the first recorded speculative bubble.[1] The term "tulip mania" is often used metaphorically to refer to any large economic bubble.

 

[XL-entLady]

Sorry for the geeky reference, but I have always been fascinated with this part of history.

I always love to find out how phrases we use came into the language. During the time you refer to, a man who was very well dressed was referred to as a "tulip of fashion".

Lady

 

[Mike]

I guess the line should have been "My kingdom for a tulip".