In this series I will visit events and tell my depiction of them, may it be a historic event, a current real-life event, a movie, a book, a game.
I will try to stay close to the original story, but in terms of simplicity, I will try to recollect them from my own memory, so factual errors may happen.
But they will be all based on the actual event, so if you're not concerned with minor details, read on :)
This story takes us back to the Netherlands in the 17th century, when the first major speculative bubble was recorded and burst.
It all started, when an ambassador of the Turkish Sultan of the time, Ogier de Busbecq, sent first tulips bulbs to Vienna, from where they spread all over the nightnbouring countries.
As people soon realized that the tulip bubs could withstand the local climate very well, and due to their extraordinary colours (it appears all other flowers at that time were plain gray?), tulips soon became a coveted item of luxury.
Merchants flocked to import and grow tulips, commoners flocked to the market to get their own share of the lifestyles of the rich and the famous.
Price kept rising. A virus was introduced (man-made? Accident?) to the tulips, changing the colors of their petals to mosaic-like, which made people desire them even more.
Due to simple supply-demand logic, there was not enough tulip bulbs to go around for every Jim, Joe and Matther of the time, so tulip futures were introduced.
But the price kept rising. According to some sources, some tulip futures changed hands tens of times per day, some tulip bulbs exchanged hands on the market for no less than the price of proper house!
Why no bear market data? Because the collapse of the market was so intense, violent and fast, no prices were ever recorded, until tulip bulbs traded wfor what they are actually worth
Then the inevitable happened. Another day, another tulip bulb shill auction. Alas, a random plague outbreak scared the regular buyers and no-one would show up for the auction, which opened the eyes of some merchants, who immediately began unloading their wares at discount prices.
Didn't take much for the who tulip bulb to collapse, as everyone realized, what fools they had been, bidding regular flower prices to exorbitant heights, and tried to run for the door.
Bankrupt merchnats, commoners, elites ended themselves by throwing themselves to the canals.
The bubble had popped, leaving Dutch economy in rubble. Luckily, the economic rubble was quickly overcome due to the fact that this was based on a short-term hype. But to this day, every bubble in the world is referred to as "tulip mania".
In addition to official stories, there have been many researchers, who have investigated this on their own, and come to different conclusions. If you want a milder take on the subject, check out [this article](http://theconversation.com/tulip-mania-the-classic-story-of-a-dutch-financial-bubble-is-mostly-wrong-91413.
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It's a wonderful story and came up well around the dot-com era also I recall! Everybody needs to learn this one, economics 101!
Oh wow....I didn't know this interesting tulip story... things (or mankind) have not really changed, did they..? ^_^
Anyway, some flowers for you ;-)
Hey that's a nice interesting story. Resteemed. There are people who say, like the inflation in the story is same as the inflation of Bitcoin. God save them and educate them about the technology that manufacture it.