DUTCH TULIP BUBBLE BURST

Subject : Economics

Context : Now, almost exactly 385 years and another pandemic later, Wall Street waits to see how long it will take for history to repeat itself.

Concept :

Shares of video game retailer GameStop Corp have soared 1,625% since the start of January. Driving the rally are individual investors who have been stuck at home for the last ten months.
The value soars until one day the market runs out of buyers and freezes, causing prices to plummet and some unlucky few to lose fortunes more than ten times their annual incomes in the span of a few hours.

Dutch Tulip Bubble Burst

The Dutch tulip bulb market bubble, also known as ‘tulipmania’ was one of the most famous market bubbles and crashes of all time.
It occurred in Holland during the early to mid 1600s when speculation drove the value of tulip bulbs to extremes.
At the height of the market, the rarest tulip bulbs traded for as much as six times the average person’s annual salary.
Today, the tulipmania serves as a parable for the pitfalls that excessive greed and speculation can lead to.