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The First Market Bubble in History - Sound familiar? In 1637, the Dutch economy was swept up in tulip mania—where ordinary flowers were traded like luxury assets and prices soared on pure speculation. Economist Peter M. Garber explains how people bet on ever-rising demand, convinced prices could only go up. The result? The world’s first recorded market crash. And the psychology behind it looks strikingly familiar. From tulips to tech stocks, why do we keep falling for the same economic illusion—
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Financial bubbles have popped up throughout modern history—from Dutch tulip mania to the more recent sub prime lending boom. Our cartoonist Kal illustrates what makes them burst | The Economist
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