Other bubbles in the history: The Tulip bubble

Currently, many countries face same major bubbles which are real estate and stock market. However, in the history, there was one plant that made the financial bubbles which called Tulip. In 1593, Tulips was sent from Turkey to Netherlands. It became a craze among aristocrats within a few years. Soon after, the Tulip became an object of speculation in the market. Individuals kept bidding up the price of bulbs. However, they were never seen by their purchasers. It became a major business that buying and selling contracts for Tulip bulbs in itself.

The rate of increase in the price was decrease. This can be understood that stocks for companies that have never made a profit. A single bulb was sold for $525 in 1623. The price was increasing at $1575 in 1625. Eventually, three such bulbs can be sold for $16,000 in 1637. How crazy about this price? In the same year, the average annual Dutch income just had $79.


The collapse happened in February 1637. Many individuals who invested Tulip were bankrupted. Even some middle class people did not have money for survival. Click here to watch cartoon Tulip Bubble explanation