The phenomenon of the speculative bubble, when the market participants trade in the product at prices, essentially and in many artificially overestimated compared to real - are not at all uncommon for the modern market. The story knows a large number of examples of speculative bubbles, when the goods after an inexplicable rise in price is rapidly cheaper, leaving many people with anything. The first similar well-documented case occurred in the Netherlands in the first half of the 17th century.
Nowadays, the Netherlands are known for their tulip farms - the country exports these flowers almost around the world. The history of the cultivation of the tulip in the Netherlands is much older than it may seem - it is grown there from the mid-16th century, almost since the bulbs of these colors first brought to Europe. At first, it was only indecisive experiments of few enthusiasts, but soon the Netherlands farmers were fully able to master the process of growing flowers and began to sell them on the market. Rumors about bright and unusual plants quickly spread across Europe - this flower has become a symbol of the scientific progress of society and the riddance of the Renaissance. Each new tulleted color of the tulip met with an excitement - about how people now stand in line for a new gadget from famous companies. Possession of tulips bulbs in order to grow them in their garden, became the cherished desire of many people.
All this led to the fact that by the beginning of the 17th century, the prices for tulips increased significantly. The increasing popularity and export of tulips into other European states raised demand for them higher and higher, while the imperfect agriculture of that time could not fully satisfy it. Prices for this flower, who has already taken by that time, a strong place in European culture, continued to grow, the bulbs of tulips began to be considered a profitable financial investment, and not just a fashion indicator. True, accessing their purchases due to high prices had only a narrow circle of people (one bully at the beginning of the 17th century cost as much as three average artisans earned for the year), therefore prices though were high, but trade did not exit from under control . In order to access the bulbs received ordinary people, something should have happened that the prices would take them. And soon this case occurred.
The so-called pepperpole tulips were displayed, whose petals were painted in two colors, bizarre mixed into the pattern with a predominance of strips. It was later established that the polesalest tulips become such due to the virus hitting about 1-2 bulbs out of 100. A rare phenomenon that actually signaled about the disease of the flower, admired people with their beauty, so all investors quickly forgot about ordinary bulbs, starting Hunt for spelling, which could give birth to tulips of unusual color combinations.
The price for ordinary bulbs has decreased, so a larger number of people could now afford them. "But suddenly, putting a few bulbs, next year you get a polesaleling tulip? Then all the remaining years can you live for money from his sale! " "It was about this that the majority of ordinary residents of the Netherlands thought, and they ran to buy farming. It began that later be called tulip or tulip fever.
Already in 1633, records began to appear that some residents for several tulip bulbs sell their homes. Soon, such cases no longer caused surprise. At first, the bulbs bought those, at least something understanding in gardening, but after a while, mania and rumors about extraordinary enrichments made the market and other people.
In 1634, breeders brought several tens of tons of tulips at once, which reduced the prices of previous and attracted people to the tulip of people with low earnings. Tulips trade began to be held year-round: in the markets were sold to the obligations to transfer flowers to the buyer for the next year at the time of their flowering. Already in 1635, the trade in the bulbs was made in the way, moving away the initial object of speculation to the background. These contracts later resold many times, increasing the price every time. The so-called air trade began, and the majority of participants had no experience in speculative trade.
Soon about the bulbs as a product and at all forgotten - the trading of Assa, which denoted the unit weight of the bulb. One AU was approximately 5% of the entire bulbs. Gradually, Assa replaced real money: they bought food, real estate and other goods for them.
But still until 1535, the price of tulip bulbs grew evenly. And from November 1636, an excitement began on the market. This was preceded by a robust drop in prices, when rumors had reached Amsterdam and other cities about the defeat of the German army with Wittshtok - Germany was one of the main consumers of tulips. Actually, it was then that the demand for the bulbs themselves fell strongly, after which he was not restored. But despite the real state of affairs on the market after the collapse of prices for contracts, they immediately followed their sharply no reinforced growth - professional speculators, warming market, entered the case. There were other inexperienced buyers on their tricks. In one month of trading, the price of contracts flew about 25 times. It was reached Funny: The bulb of the tulip could be checked at a low price, while the contract for it was stood fabulous money.
In early 1637, the Netherlands reached rumors about outbreaks of plague in neighboring regions. Concerned traders began to get rid of their contracts than caused a sharp drop in prices. Thousands of contract holders at one point lost all their savings, becoming debtors.
For many years, the Netherlands plunged into litigation relative to payments of contracts. Some lucky people managed to agree on a free termination, but not everyone was lucky. There were searches for guilty throughout the country, and the word "speculator" was abusive for a long time.
The tulip was strongly reflected on the national nature of the Netherlands: they became more closed and worried about working with risky assets for a long time. In the history of the tulip, it will remain one of the first speculative bubbles that brought one fabulous wealth and ruining others.