Tuesday, April 14, 2009

Tulips Cause Market Disaster

Blog to go with Episode 10 of Knitlark Lane Podcast knitlarklane.libsyn.com

I walked by these lovely tulips not far from my house. I just had to share them with you.

Yes, tulips caused a HUGE market crash in Holland. Tulips came to Europe in the 1590s from Turkey. They became very popular, and a person's tulip collection was a sign of their social status and good taste. The market went out of control. Tulip prices rose 100% each week. Some bulbs sold for what would amount to $100,000 in today's money!

People started speculating -- buying tulips to "flip" them. (Sound familiar?) Tulips would be sold many, many times before they even left the ground.

But, of course, the market corrected itself. It fell hard, and those who had not cashed in lost everything as tulip value sunk to 1% of its former price.

What a history behind that lovely flower!

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