The Tulipomanie , which affected the Netherlands in the middle of the 17th century is the name of the first Speculative bubble of the history. The speculation was founded on the trade of the Tulipe whose prices reached tops, before crumbling.

History

The tulip was introduced with the Netherlands in 1559, was imported since Constantinople and becomes immediately object of passion. The culture will begin in the Netherlands in 1593

In 1623, the bulb of a rare variety, Semper Augustus , posts: 1000 Guilder S, in 1625: 2000 and in 1637: 5500 (the average annual income of the time is of 150 guilders). In February of this year, another variety even more expensive reaches them: 6700 guilders. The price of only one onion can equalize in 1637 the value of two houses, eight times that of a fatted calf and fifteen times the annual salary of a craftsman. Since 1635, one could even buy shares of bulb.

The speculation will seize this phenomenon and the prices will start with really exploding in 1634 until the end of 1636 when the speculators will realize of the irrationality of this phenomenon, because of the lampoon of Adriaen Roman, which puts in scene a weaver who would have given up all to become florist. The man makes fun of a former colleague trimant to make 10% of benefit. But this rétorque last him which it did not garner yet these profits mirific. The work is prophetic. Salesmen of Haarlem having read it refuse to sell with: 1250 guilders a tulip. The price drops with: 1000 guilders. The meeting is adjourned. Very quickly, the speculators of the city are with the current of the business. Result: the price of the tulips tumbles down of 99%. It was the first Speculative bubble economic and financial of the history. In 1642, after the Crash, it is not any more but with the tenth of its value (??) and hundred years later to its two hundredth.

At the time, the tulips are fragile, potential victims many Virus. One of them, far from destroying them, causes on the contrary a Floraison of a remarkable beauty. The Plant thus transformed, desirable between all, cannot be reproduced by sowing but, as it is often the case, by outgrowths of onion. The larger this one is, the more the outgrowths are numerous. The outgrowths themselves give Fleur S later only three years.

The viral infection can occur constantly, in any onion of tulip, and give him an unexpected development: lamentable or sublime.

Reference

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