Odd Lots Episode 3: The Strange Story Behind the Beanie Babies Bubble
Nov 23, 2015
Zac Bissonnette, author of "The Great Beanie Baby Bubble: Mass Delusion and the Dark Side of Cute," reveals the fascinating psychology behind the Beanie Babies craze of the late '90s. He examines how a simple stuffed animal ignited a speculative frenzy akin to the tech bubble. Bissonnette discusses the roles of community dynamics, artificial scarcity, and the pitfalls of misplaced confidence. The conversation also draws parallels between collectibles and stocks, outlining how luck and timing can influence value perceptions in any market.
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Flea Market Frenzy
- Zac Bissonnette's interest in the Beanie Baby bubble stemmed from his middle school experience.
- He observed a sudden influx of Beanie Baby dealers at a flea market, followed by their eventual disappearance.
Beanie Meanie
- Traditional antique dealers resented the Beanie Baby craze.
- One dealer, dubbed the "Beanie Meanie," even received a crucified skunk Beanie Baby for his stance.
Accidental Scarcity
- Ty Warner's obsessive approach to Beanie Babies, including frequent design changes, unintentionally created scarcity.
- This, combined with low initial interest, inadvertently laid the groundwork for the bubble.
