One of the most remarkable economic bubbles in history occurred in the 17th century in Holland. Dutch traders began trading tulips at increasingly high prices, particularly for very rare specimens. Single bulbs could sell for many times the annual income of a skilled artisan, until prices crashed...
Although economic bubbles are not that rare, people repeatedly fail to recognize risky, speculative trading as it’s happening.
Japanese economy grew on average 9% annually from 1955 to 1973, meaning size of economy doubled in every 8 years. This is by far the rapid economic growth in the modern history, may be only second to the rise of China after 1979. It didn’t stop here, Japanese economy grew at average...
This paper investigates the history of economic bubbles and attempts to identify whether there are direct correlations between different bubbles. To support this research, literature has been consulted on historical and recent bubbles, theories surrounding speculation, the market for venture capital, and...
There have been numerous occasions in history all over the world when things like tulips, land or website stocks were sold at significantly more than their cost.In every one of these cases, costs rose exponentially and suddenly weakened.These are calledbubblesand like actual soap bubbles, they ...
Examples of Bubbles Recent history includes two very consequential bubbles: the dot-com bubble of the 1990s and the housing bubble between 2007 and 2008. However, the first recorded speculative bubble, which occurred in Holland from 1634 to 1637, provides an illustrative lesson that applies to the...
saying "the worldwide rise in house prices is the biggest bubble in history".Real estate bubbles are invariably followed by severe price decreases(also known as a house price crash) that can result in many owners negative equity(a mortgage debt higher than the current value of the property)....
On the one hand, we have Bitcoin, something we have no clue about how it'll turn out because it's an ongoing process. On the other hand, we have things we know to be bubbles for certain through history, and some of them will never have a good value again (Tulip). Just because th...
Endogenous Price Bubbles in a Multi-Agent System of the Housing Market Economic history shows a large number of boom-bust cycles, with the U.S. real estate market as one of the latest examples. Classical economic models have not been able to provide a full explanation for this type of mark...
In his book Devil Take the Hindmost: A History of Financial Speculation, Edward Chancellor talks about how the herd mentality takes shape during history’s great financial bubbles:“In financial markets, one might say they are prepared to ignore bad news because they still hunger after the ...