Oh What A Time... #15 Money
Oct 22, 2023
Dive into the wild world of money as the hosts unravel the Dutch Tulip craze and the chaotic dot-com bubble, highlighting financial follies with humor. They also joke about the absurdity of time travel for investment strategies and share quirky anecdotes about modern living. Discover how the Rhondda Valley transformed from a rural area to a coal powerhouse, and laugh along with tales of cold showers and property woes. Plus, explore the financial stakes of Super Bowl ads while engaging with listeners for their insights.
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Tulips Created Early Speculation
- Tulip trading in 17th-century Netherlands created early forward contracts and speculative markets.
- Prices surged as people bought bulbs and contracts long before bulbs existed, inflating a bubble that later collapsed.
Tavern Deals Triggered The Crash
- Many tulip contracts were casually signed in taverns rather than formal exchanges.
- That meant when buyers refused to honour contracts the market collapsed almost overnight in February 1637.
Tulip Myth Versus Historical Debate
- Charles Mackay's 1841 account amplified the tulip story into legend and may have overstated facts.
- Historians accept a tulip craze occurred but debate the scale and accuracy of popular retellings.
