Tulip Bulbs, Bored Apes and Bubbles

Get 40% off Blinkist premium, only valid until the end February! Enjoy 2 memberships for the price of 1. Start your 7-day free trial by clicking here: or scanning the QR code. The Dutch tulip bulb market bubble, also known as tulipmania, was one of the most famous market bubbles and crashes of all time. It occurred in Holland during the early to mid-1600s, when speculation is claimed to have driven the value of tulip bulbs to extreme levels. At the market’s peak, the rarest tulip bulbs traded for as much as six times the average person’s annual salary. Today, the story of tulipmania serves as a parable for the pitfalls that excessive greed and speculation in investing can lead to. The story of tulip-mania gained popular attention in 1841 with the publication of the book Extraordinary Popular Delusions and the Madness of Crowds, written by Scottish journalist Charles Mackay, who wrote that at one point 5 hectares (12 acres) of land were offered for a single tulip bulb. Mackay claimed that many investors were ruined by the fall in prices, and Dutch commerce suffered a severe shock. Although Mackay’s book is a classic, many modern historians believe that the mania was not as extreme as he described. More interestingly Mackay lived through three much bigger speculative bubbles in his lifetime in railway stocks, and not only did he not recognize them as bubbles, but he participated in them. Patrick’s Books: Statistics For The Trading Floor: Derivatives For The Trading Floor: Corporate Finance: Patreon Page: Visit our website: Follow Patrick on Twitter Here: Patrick Boyle On Finance Podcast: Spotify: Apple: Google Podcasts: Join this channel to support making this content: