Tulip Mania (1637)

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Tulip Mania, also known as Tulipomania, was a speculative bubble that occurred in the Netherlands during the early 17th century, particularly between 1634 and 1637. It is often cited as one of the first recorded speculative bubbles in history. The phenomenon involved the rapid escalation of tulip bulb prices to extraordinary levels, with some bulbs selling for as much as six times the average person's annual salary. This frenzy was driven by speculation rather than the intrinsic value of the bulbs. The bubble burst in February 1637 when buyers could no longer afford the high prices they had previously agreed to pay. This led to a sharp decline in prices, leaving many speculators financially ruined. Despite its impact on individuals, Tulip Mania did not significantly affect the overall prosperity of the Dutch Republic, which was a leading economic power at the time. The event serves as a historical example of irrational market behavior and the dangers of unchecked speculation.