Bubbles

Bubbles

05/28/2018
Greatest Financial Bubbles and Crashes
Adrian Adrian

1636: The Dutch Tulip Bulb Bubble

One of the earliest and most well known bubbles was the tulip mania.  The growing popularity of tulips and bulbs caused people to speculate by paying higher and higher prices in the hope that they could turn round and sell them for a profit.  Prices soared and traders who sold their original bulbs for a profit began to reinvest all of their profits in new bulb contracts.  As the mania reached it's peak many merchants sold their belongings to purchase new bulbs as they didn't want to miss out on the opportunity of more profit than they had ever made.  The prices exploded and the speculation began to spread, although the high prices seen in Amsterdam were never quite achieved in Paris or London.

As with most bubbles, it continued to inflate far beyond everyones expectations, until in the winder of 1636/37 it popped.  Sellers overwhelmed the market and buyers disappeared, attempts to support the price failed, within a few days, prices dropped and resulted in a panic where dealers refused to honor contracts, government intervention did little to help causing the market to drop further and caused a mild depression and suspicion towards speculative investments for a long time.

1720:The South Sea Bubble

1720: The Mississippi Bubble

1927 - 1929: The late 1920s stock price bubble.

1970s: The surge in bank loans to Mexico and other developing countries.

1985–89: The bubble in real estate and stocks in Japan.

1985–89: The Bubble in real estate and stocks in Finland, Norway and Sweden

1992–97: The bubble in real estate and stocks in Thailand, Malaysia, Indonesia and severalother Asian countries.

1990–93: The surge in foreign investment in Mexico 1990–93

1995–2000: The bubble in over-the-counter stocks in the United States.


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