Tulipmania

Maybe not a mania but a case of supply and demand

Economy 101

Economists like to make fun of the tulip” mania” that gripped the Netherlands in the 1630”s.

But that is because they are comparing it by today’s standards

Turkish Empire

Turkey believed the tulip to almost an ethereal flower.

The tulip was bestowed upon visiting dignitaries as a gift of honor.

Fit for a King

Envy, Lust, Greed

Object of Desire

Luxury Items

• Unique Reproduction

1630’s

• New Wave of Farmers

•Lower cost to produce flowers•Price decreases with greater supply•New Wave of buyers…

HappinessI have waited my entire life to own such a treasure!! I will pay any thing to own that treasure because I will be able to sell it to my rich neighbor in the spring….and become rich like them!!!

Get Your Tulips HereJust 3 Florins commission please!!

May day is Pay day… Maybe…if I can find a buyer

February 1637No more buyers, at any price.

Angry sellers and buyers!!!

Some people grew to detest the tulip and what it stood for…greed, lust, and envy….

Government Assistance

Oh, this is 1637, there is no subsidized farming…

History Repeats Itself

Tulips• Speculators• Easy Credit• Inflated Price• Government Intervention• Abandoned the contracts• Economy Readjusts• Booming Export

Housing• Flippers• No money down• Inflated Price• Government Intervention• Foreclosure• Economy Readjusting• ?????

Long slow road to recovery